FBI: Hewlett-Packard’s Incredible Scam Claims Under Review
Did Autonomy truly swindle Hewlett-Packard (NYSE:HPQ) to the tune of a whopping $8.8 billion write down? According to Bloomberg, the FBI is now involved after the SEC asked for assistance in one of the biggest M&A scam accusations to ever rock Silicon Valley.
How Does the Accusation Add Up to an $8.8 Billion Write Down?
“More than $5 billion of the charge relates to accounting missteps, including improperly categorized hardware, Hewlett- Packard said. The rest is linked to Hewlett-Packard’s share value and projections that the deal won’t meet expectations, said the company, which also forecast fiscal first-quarter profit that missed analysts’ estimates,” reports Bloomberg.
CHEAT SHEET Analysis: Does “Honest Accounting Govern Hewlett-Packard’s Books”?
One of the core components of our CHEAT SHEET Investing Framework requires companies to have zero evidence of accounting manipulation. In this case, Hewlett-Packard fails our test.