HP contacted by U.S. attorney in leak probe
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Hewlett-Packard Co. HPQ.Nhas been   contacted by the U.S. attorney for the Northern District of   California regarding the company's probe into media leaks, the   company said in a regulatory filing made on Monday.
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Hewlett-Packard has turned over thousands of documents to a U.S. House subcommittee investigating methods the company used to find out who was leaking company information to the media, a subcommittee spokesman said Monday.
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By Connie Guglielmo and Karen Gullo  The scandal over Hewlett-Packard Co.'s secret probe to catch directors leaking information to the media deepened Thursday, with the California attorney general threatening to bring criminal charges.
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SACRAMENTO, Calif  - California's attorney general will seek indictments on Wednesday in Hewlett-Packard Co.'s  boardroom leak probe against former Chairman Patricia Dunn and others but not Chief Executive Mark Hurd, BusinessWeek reported in its online edition.
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California's attorney general  filed a criminal complaint on Wednesday seeking indictments of  former Hewlett-Packard Co.  Chairman Patricia Dunn and  four others for their roles in a probe into board leaks.
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Hewlett-Packard staff could be indicted over the firm's probe into media leaks, California's attorney general says.
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A former Hewlett-Packard Co.   board member has asked U.S. prosecutors, as well as  U.S. trade and communications regulators, to review an HP  investigation in which directors' and journalists' private  phone records were accessed.
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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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Hewlett-Packard Co. HPQ.N said on   Sunday that it used improper methods to access phone records of   two employees, including its own spokesman, in an internal   probe into leaks to the media.
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(InfoWorld) - The U.S. House of Representatives Subcommittee looking into theÂ Hewlett-Packard Co. boardroom spying scandalÂ has added a second day of hearings and issued subpoenas for some witnesses. The Oversight and Investigations Subcommittee of the Energy and Commerce Committee is holding hearings on Thursday, Sept. 28, and now Friday the 29th on pretexting, the practice of obtaining private phone records under false pretenses from phone companies. On the second day of hearings, the subcommittee has invited executives of the major wireless phone carriers to testify as well as the chairmen of the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC), according to a subcommittee news release Monday. Several people connected with the HP scandal have already accepted invitations to testify before the subcommittee on Thursday. HP has admitted that outside investigators it hired earlier this year to find the source of news leaks from the HP board engaged in pretexting to access their phone records. It is a decision HP now regrets, Chief Executive Officer (CEO) Mark Hurd said at a news conference Friday at the technology company's headquarters in Palo Alto, California. The committee issued subpoeanas compelling three witnesses to testify in regards to the HP scandal: HP senior counsel Kevin Hunsaker; HP Global Security Manager Anthony Gentilucci; and Ron DeLia, operator of Security Outsourcing Solutions Inc. (SOS), a Boston-based private investigations firm hired by HP. Hunsaker and Gentillucci worked closely with SOS to investigate the leaks, including use of pretexting, according to a report released Friday by an attorney hired by Hurd to investigate HP's investigation of the leaks. Congress has before it legislation to make pretexting a federal crime. California Governor Arnold Schwarzenegger has a bill on his desk to make pretexting a state crime, but Attorney General Bill Lockyer says state criminal charges could still be filed against those involved in the HP scandal under existing state law. The CEOs of U.S. Cellular Corp., Alltel Communications Inc., Cingular Wireless LLC, Sprint Nextel Corp., Verizon Wireless Inc. and T-Mobile USA Inc. have been asked to appear at the second day of hearings. The subcommittee said in a news release that the hearings are part of a seven-month inquiry it's been conducting into data brokers and the questionable practice of pretexting.
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By JORDAN ROBERTSON  SAN JOSE, Calif. - A congressional panel wants to question key figures in the scandal surrounding Hewlett-Packard Co.'s investigation of media leaks, while a shareholder lawsuit was filed in state court accusing the company's top brass of breaching their duties.
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(InfoWorld) - Ousted Hewlett-Packard Chairman Patricia Dunn, a former company lawyer, and three outside investigators were charged Wednesday in California on felony charges related toÂ the conduct of an investigationÂ to track down news leaks from the HP board that allegedly broke state law. California Attorney General Bill Lockyer's office said charges have also been filed against Kevin Hunsaker, a former senior lawyer at HP; Ronald L. DeLia, a Boston-area private detective; Matthew DePante, manager 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 Action Research. The charges were announced at a press conference held Wednesday at the California Department of Justice. The charges include using false or fraudulent pretenses to obtain confidential information from a public utility, wrongful use of computer data, identity theft, and conspiracy to commit each of those crimes. All of the charges are felonies. "One of our state's most venerable corporate institutions lost its way as its board sought to find out who leaked confidential information to the press," said LockyerÂ in a statement, released Wednesday. "In this misguided effort, people inside and outside of HP violated privacy rights and broke state law." Lockyer's office has been investigating the spying allegations because HP is based in Palo Alto, California. The charges were filed in Santa Clara County Superior Court. The U.S. Attorney's Office in San Francisco and the Federal Bureau of Investigation have been conducting separate investigations of HP. In a statement released after the filing, Dunn's attorney, James Brosnahan, said his client will fight the charges. "These charges are being brought against the wrong person at the wrong time and for the wrong reasons. They are the culmination of a well-financed and highly orchestrated disinformation campaign," Brosnahan said. He did not elaborate on his charge of a disinformation campaign. "As her many supporters fully expect, she will fight these charges with everything she has,â he said. In a statement released Wednesday in advance of the Sacramento press conference, HP said it was continuing to cooperate with state and federal investigators. The private investigators hired by HPÂ allegedly used "pretexting,"Â pretending to be someone they are not, to obtain the telephone records of HP directors, other employees and journalists who cover the company in an attempt to find out who from the board provided information to the reporters. The scandal has attracted the attention of the U.S. Congress.Â On Sept. 28, Dunn toldÂ the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee that she believed employees and lawyers who said that the HP's leak investigation complied with the company's standards of conduct. The subcommittee was holding hearings into the use of pretexting. The committee passed a federal ban on pretexting but the Congress adjourned before the full House or the Senate voted on the legislation. When questioned about the techniques used to track down the leaks arose in the latter part of the investigation, Dunn said, she passed concerns to company Chief Executive Officer Mark Hurd. Before then, the company's lawyers had assured her the techniques were being done "legally and properly," she said. "At no time in the investigation did I authorize its methods," Dunn said. "I asked this to be done in the HP standard way." On his part, Hurd told the subcommittee that he was not aware of the details of the techniques being used. He said he did not read a report from the investigating team that detailed the use of pretexting. Ann Baskins,Â who resignedÂ right before the subcommittee hearing as HP's senior vice president and general counsel, and Hunsaker both asserted their rights not to testify under the Fifth Amendment of the U.S. Constitution during the hearing. Also taking the fifth before the subcommittee were Delia, Wagner, and Action Research owner Joe DePante. Dunn faces these criminal charges at a difficult time in her personal life. Dunn, is scheduled to begin chemotherapy Friday for a recurrence of advanced ovarian cancer, according to a Wednesday report in the San Jose Mercury News. She was diagnosed with ovarian cancer in 2004 and had been treated for breast cancer and melanoma dating back to 2001, the paper reported. (Stephen Lawson and Robert McMillan contributed to this story)Â  Â
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(InfoWorld) - In one telling moment during the recent Congressional hearings onÂ the Hewlett-Packard Co. board scandal, ousted chairman Patricia Dunn offered the "everybody does it" defense. Asked by one legislator about HPâs hiring private investigators who obtained phone records under false pretenses, a practice called pretexting, to identify whoâd leaked confidential information, Dunn replied, "I believe these [pretexting] methods may be quite common at companies around the country." If so, that is chilling to business ethicist Kirk Hanson. "As an ethicist Iâm horrified that HPâs managers relied on the assertion that it was borderline, but legal, and never asked whether it was ethical," says Hanson, executive director of the Markkula Center for Applied Ethics at Santa Clara University, in Santa Clara, California. If HP adopted what Hanson called "black ops" as standard investigative practices, he wonders how many other companies have done it. HP, some of its employees and companies it hired to investigate boardroom leaks to news media still face potential civil and criminal liability for their actions. Other companies find themselves in a dilemma over how to control information within the law. Companies may have a moral or legal responsibility to respect peopleâs privacy, but they also have a legal and fiduciary responsibility to protect confidential business information. And under the federalÂ Sarbanes-Oxley ActÂ in effect the last four years, they have obligations to investigate certain leaks, Hanson says. Companies have a right to investigate their own employees if theyâre suspected of leaking information. Employees should presume no right to privacy in their use of company computers, e-mail programs or telephones. One commonly used tactic to probe security breaches doesnât even involve electronic snooping. Companies exclusively give suspected leakers seemingly important but relatively benign information. If it turns up in the media, the company has identified the leaker. But Hanson sees a bright line separating how a company can investigate its own employees and how it can investigate outsiders. The HP reaction to leaks to reporters contrasts with the recent practice of Apple Computer Inc. when proprietary information got out. Although Apple is known for its devotion to secrecy, it went to court rather than to private eyes when confidential information leaked in 2004. Apple, of Cupertino, California, sued in state court to force two Web sites to reveal sources for stories they posted about a possible new Apple product. A state appellate court ruled May 26 that the writers on those Web sites enjoy the same First Amendment rights as mainstream journalists and, thus, were protected by Californiaâs shield law from having to reveal their sources. Apple dropped the case. It did not reply to a request for comment on this story. The Sarbanes-Oxley Act requires companies to develop a whistle-blowing reporting system so employees can raise issues about improper behavior within the company, said Hanson. That has prompted companies to develop an investigative capability in the event improper or illegal activity is alleged. "So (under SOX), companies have developed much enhanced investigative capability," he said. Companies also have to keep confidential information safe because disclosure could be a criminal act or a breach of fiduciary responsibility, said Rob Enderle, senior analyst at Enderle Group, a technology market research firm. If word leaks that a board is contemplating an acquisition, for instance, the company or people in it could be prosecuted for insider trading if people used that knowledge to make stock trades. Given the potential liabilities, corporate investigations of leaks are "common," said Enderle. "The stuff with the pretexting goes to the extreme, but looking at company phone records or e-mails, that is very common. Hiring an outside contractor is also common." In fact, leak investigations enjoy broad support among corporate directors. In a September telephone survey of 226 board members at publicly traded companies in the U.S., 73 percent said a company's chairman should be empowered to use any legally available means to identify a board-level leaker, according to Ponemon Institute LLC. About 71 percent of the respondents said it would be okay for a board chairman to review the e-mail messages of other members, in addition to other types of confidential data stored on company computers. Fifty percent said that reviewing telephone records of individuals obtained via pretexting is proper as long as that approach hasn't been outlawed. But HPâs tactics of tailing reporters, attempting to install a tracer on a reporterâs e-mail program, pretexting numbers of people outside the company and even considering planting spies in newsrooms as janitors or clerical workers is "bizarre" to Rick Belluzzo. "The reaction by HP was totally out of proportion with the situation," said Belluzzo, chairman and CEO of Quantum Corp., a network storage equipment maker. His rÃ©sumÃ© includes president of Microsoft Corp. and a 23-year stint at HP, where he rose to the position of executive vice president of its computer division. While he understands the importance of keeping certain information confidential and making employees and directors sign confidentiality agreements, HP overreacted to information leaks that are sometimes going to happen anyway. "Itâs an impossible task to control information flow. Some leaks are inevitable," Belluzzo said.
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Hewlett-Packard Co. (HP) has submitted thousands of documents to a House subcommittee looking into how the company tracked down boardroom leaks.
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California's attorney general has   launched an inquiry into methods used by Hewlett-Packard Co.   HPQ.N to investigate boardroom leaks dating back to 2005, the   computer maker said on Wednesday.
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US congress and federal prosecutors have launched an informal inquiry into the way Hewlett-Packard Co conducted an internal probe into who on its board leaked information to the media in 2005, when it ousted Carly Fiorina as CEO.
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Hewlett-Packard Co. HPQ.N on   Thursday admitted that private investigators hired by its board   had acquired the phone records of several journalists in an   attempt to find a suspected boardroom leaker, the Financial   Times reported on Friday.