HP CEO Allowed 'Sting' of Reporter
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Hewlett-Packard Co. chief executive Mark V. Hurd approved an elaborate "sting" operation on a reporter in February in an attempt to plug leaks to the media, according to an e-mail message sent by HP Chairman Patricia C. Dunn.
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Hewlett-Packard Chief Executive Officer (CEO) and President Mark Hurd confirmed on Friday that he approved a probe of HP employees, board members and journalists in an effort to find out who on the HP board was leaking confidential information outside of the company.
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(InfoWorld) - California Attorney General Bill Lockyer says criminal charges are "likely" in the scandal surrounding alleged spying involving the board of Hewlett-Packard Co. (HP), reports say. Meanwhile, HP board Chairman Patricia Dunn says she will not resign over the scandal and that she was "appalled" that contractors hired to investigate news leaks used potentially illegal methods, news reports say. The Wall Street Journal reported the HP board will hold a special meeting by phone this weekend to discuss the situation. HP is on the defensive after the disclosures this week thatÂ phone records of HP board membersÂ andÂ journalistsÂ were hacked to see who on the board discussed confidential strategy sessions with reporters earlier this year. The company disclosed in a U.S. Securities and Exchange Commission filing Wednesday that investigators, in order to identify the leaker, had used "pretexting," a method in which false pretenses are used to gain online access to others' phone records. The investigation determined that director George Keyworth was the source for a Cnet.com story in January about HP's strategy. Keyworth was asked to resign from the board in May but refused. Board member Thomas Perkins, a renowned Silicon Valley venture capitalist, did resign in May in protest over concerns with the HP board's handling of investigations into leaks of confidential information. Dunn, in an interview in the Journal Friday, said that while she ordered the investigation of board news leaks, she did not know the investigators hired to conduct the probe used pretexting. "I was appalled. And I'm going to apologize," to those journalists, she told the Journal. Because she was also subject to investigation, she said she could not have known what methods the investigators used. But while she does not plan to resign, Dunn will take into consideration what the board thinks she should do. "I serve entirely at the pleasure of the board,'' Dunn told the Journal. "If they determine it no longer is in the interest of shareholders [for me to remain on the board] I will do so.'' Charges could be filed under a California law prohibiting gaining unauthorized access to computer data or under another law prohibiting identity theft through unauthorized use of personal information, published reports say. The investigation is ongoing but prosecution is likely because a crime has occurred, Lockyer told the San Jose Mercury News. A bill to specifically outlaw pretexting is on Governor Arnold Schwarzenegger's desk awaiting his signature. The governor has until the end of September to sign or veto the bill, spokesman Darrel Ng told IDG News Service. Schwarzenegger hasn't taken a position on the pretexting bill, but only because it is one of hundreds of bills passed during the recently concluded session of the California Legislature, Ng said.
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SAN FRANCISCO -- Hewlett-Packard Co. chairwoman Patricia Dunn is under scrutiny from business and ethics experts after she oversaw an invasive and possibly illegal effort to snoop into the home phone calls of fellow HP board members.
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Hewlett-Packard Co. chairwoman Patricia Dunn, a former company lawyer, and three outside investigators wereÂ charged Wednesday in CaliforniaÂ on felony charges related to the conduct of an investigationÂ to track down news leaks from the HP board that allegedly broke state law.
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PALO ALTO, California  - Hewlett-Packard Co.   HPQ.N Chief Executive Officer Mark Hurd said he had approved   an e-mail ruse to track down boardroom leaks, admitting for the   first time his involvement in a scandal that also on Friday   forced out the company's chairman.
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(InfoWorld) - Two key figures in theÂ Hewlett-Packard spying scandalÂ will give their sides of the story in interviews on the CBS News program "60 Minutes" on Sunday. Patricia Dunn, former chairman of the technology company who was charged with four felonies in California, and Carly Fiorina, the former chief executive officer, president and chairman, gave separate interviews on the subject, according to information released by CBS Friday. In her interview, Dunn says companies conduct such investigations often. "Every company has investigations. Investigations, by their nature, are intrusive," Dunn tells "60 Minutes" correspondent Lesley Stahl. "If you think that Hewlett-Packard is the only company that has an investigations force -- which by the way, is peopled mostly with former law enforcement officers that do all kinds of private detective work, monitoring, posing as other people in order to solve problems to protect shareholder value -- you're being naÃ¯ve." Dunn tells Stahl she is innocent of the charges she and four others connected to the case are facing: using false pretenses to obtain confidential information from a public utility, unauthorized access of computer data, identity theft and conspiracy. Four other people face the same charges. Dunn made a brief court appearance Thursday in Santa Clara County Superior Court in San Jose and will return to court Nov. 17 for an arraignment. HP is based in Palo Alto, which is also in Santa Clara County. Fiorina was also interviewed by Stahl to promote her book about her HP days, "Tough Choices: A Memoir," which is to be released next week. Fiorina says she was "shocked" to discover the lengths to which investigators allegedly went to probe the source of HP leaks to the media, including the use of pretexting -- using false pretenses -- to gain access to phone records of people who were targets of the investigation. "Well, I mean, I was shocked to hear about the depth and the range of some of those tactics and -- and shocked to hear that I might have been the subject of some of them," Fiorina said. Documents released Wednesday by the California Attorney General's Office show that Fiorina's phone records were among those accessed by private investigators via pretexting. Dunn, who succeeded Fiorina as chairman after Fiorina's firing in March 2005, launched an investigation to find the source of leaks of board deliberations prior to Fiorina's firing. Dunn authorized a second probe in 2006 after a news report in January that quoted an anonymous source on HP's board. Fiorina says in the "60 Minutes" interview that she sought to find the source of news leaks when she was chairman, but that was limited compared to what has been alleged under Dunn's chairmanship. "I wouldn't call what I did when I was faced with a leak -- I wouldn't even call it an investigation. I would call it a series of conversations with people. The reality is I knew very well who had talked outside the boardroom. Only one of the people who talked outside of the boardroom confessed. But, I knew who had done it. They knew who -- they had done it and so did everyone else on the board," Fiorina says, according to a release from CBS News.
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(InfoWorld) - Several people connected to the Hewlett-Packard Co. (HP) board scandal have been invited to testify at a U.S. House subcommittee hearing Sept. 28 on the issue ofÂ pretexting to get confidential phone records. Patricia Dunn, chairman of HP's board, and Ann Baskins, HP's general counsel, have been invited to testify at a hearing of the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee in Washington, D.C. Also invited to testify is Larry Sonsini, lead outside counsel for HP, and Ronald DeLia, managing director of Security Outsourcing Solutions Inc., a Needham, Massachusetts, corporate security company identified as having been hired by HP to investigate who on the board leaked news of a confidential strategy session to the media. HP and outside firms it hired to conduct the investigation are facingÂ possible criminal charges in California for using pretexting to surreptitiously gain access to the personal phone records of HP directors and nine journalists. Dunn has agreed to resign as chairman come January as a result of her role in the investigation, but will remain on the board. Sonsini, chairman of the law firm Wilson Sonsini Goodrich & Rosati, advised HP on the legality of its investigation of the leaks. The committee is considering federal legislation to outlaw pretexting in the U.S. and put other limits on the work of so-called data brokers who gather information for clients. Sometimes their means are duplicitous, such as impersonating an individual to gain unauthorized access to confidential records. HP is being investigated by the Attorneys General of California and Massachusetts, the U.S. Federal Bureau of Investigation and the U.S. Attorney's office for actions it took to investigate the board leaks that may have violated the law. Terry Lane, a spokesman for the House committee, said the witnesses have not been subpoenaed to testify but could not say what the committee might do if they declined the invitation. Although HP has said it is willing to cooperate on investigations into the pretexting case, spokesman Mike Moeller said the company would not comment specifically on whether Dunn and Baskins would accept the invitation to testify. Neither of the others responded to a request for comment. Â
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By Stephen Foley in New York  Hewlett-Packard is facing a federal investigation into whether the company broke the law when the computer manufacturer obtained directors' and journalists' phone records as part of its attempt to hunt down the source of boardroom leaks.
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HP says it will cooperate with a request from a U.S. House subcommittee questioning  why CEO Mark Hurd sold HP stock just before a boardroom spying scandal broke in September.
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(InfoWorld) - Ousted Hewlett-Packard chairwoman Patricia Dunn is expected to be indicted Wednesday in California on charges related toÂ the spying scandal that has hit the company, the New York Times reports. To be indicted along with Dunn are Kevin Hunsaker, a former senior lawyer at HP; Ronald L. DeLia, a Boston-area private detective; Joseph DePante, owner of Action Research Group, a Melbourne, Florida, information broker; and Bryan Wagner, a Littleton, Colorado, man who is said to have obtained private phone records while working for DePante, the Times reported. The charges are expected to come from California Attorney General Bill Lockeyer,Â whose office has been investigating reportsÂ that HP hired private detectives and may have used illegal methods to track the source of news leaks from the board of directors. The charges are expected to include using false or fraudulent pretenses to obtain confidential information from a public utility, unauthorized access to computer data, identity theft, and conspiracy to commit each of those crimes, the Times reported. All of the charges are felonies. The private investigators hired by HP allegedly used "pretexting," pretending to be journalists from a number of various publications to obtain their telephone records in an attempt to find out who from the board provided information to the reporters.
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(InfoWorld) - In an advance copy of his Congressional testimony released by a House Subcommittee on Wednesday, Hewlett-Packard chief executive officer (CEO) Mark Hurd blamed the scandal that has besieged his company on "a rogue investigation" that got out of hand. "How did such an abuse of privacy occur in a company renowned for its privacy? The end came to justify the means," Hurd wrote. "The investigation team became so focused on finding the source of the leaks that they lost sight of the privacy of reporters and others. They lost sight of the values HP has always represented." Former HP Chairman Patricia Dunn , forced to resign Sept. 21 because ofÂ the scandal,Â defended in her testimony her decision to investigate the leaks of confidential board discussions to the news media. Both are among several witnesses expected at a hearing before the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee on Thursday in Washington. The committee is looking into the practice of "pretexting," or using false pretenses to gain access to confidential records. Investigators hired by HP to find the source of leaks engaged in pretexting to get hold of the phone records of directors, HP employees and reporters who cover the Palo Alto, California, technology company. Although much of the criticism of the scandal surrounds the tactics used by the investigators, Dunn wrote in her testimony that equal consideration should be given to the leaks from within the company that damaged HP. HP's board was notorious for its leaks to news media and that such disclosures made it difficult for the board to deal with important issues candidly, she wrote. "I wish fervently that none of this had ever happened," Dunn wrote in her testimony. "But boards have an unquestionable obligation to take steps to prevent [leaks]. That certain steps taken during the investigation went well beyond what was appropriate does not undermine the importance of the board's mission in this matter."ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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PALO ALTO, California  - Hewlett-Packard Co.   HPQ.N Chief Executive Officer Mark Hurd said on Friday he had   approved an e-mail ruse to track down media leaks, admitting   for the first time his involvement in a deepening scandal.
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SAN FRANCISCO -- The congressional panel investigating Hewlett-Packard Co.'s boardroom spying probe has demanded that CEO Mark Hurd explain $1.37 million worth of options he exercised just before the scandal became public, two congressmen said Wednesday.
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SAN JOSE, Calif. _ Mark Hurd, chief executive of Hewlett-Packard, finds himself perhaps in the most awkward position among all the figures in the HP boardroom spying drama.
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By Bloomberg, AP and Staff Reports  The congressional panel investigating Hewlett-Packard Co.'s boardroom spying has demanded that CEO Mark Hurd explain $1.37 million worth of options he exercised just before the scandal became public, two congressmen said Wednesday.
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A U.S. government panel has asked a corporate ethics lawyer from Hewlett-Packard (HP) to testify in its Sept. 28 hearing onÂ the company's use of "pretexting"Â to spy on journalists, board members and other employees.