HP faces expanded civil lawsuit in spying case
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HP Chairman and CEO Mark Hurd and seven other company executives are accused of selling $41.3 million worth of HP stock at "inflated prices" just before the company revealed details of a boardroom spy scandal.
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Dunn whines The muck continues to thicken around HP's spy scandal. Verizon has filed a lawsuit against 20 unnamed data brokers, accusing them of helping out with the phone fraud used in HP's investigation. Separately, former HP Chairman Patricia Dunn has chastised HP for "inaccuracies" the company published in a recent regulatory filing.â¦
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By MICHAEL LIEDTKE   Associated Press writer  SAN FRANCISCO -- Extending beyond the skullduggery that pried loose people's private phone records, Hewlett-Packard Co.
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By Jim Hopkins and Jon Swartz  Hewlett-Packard's boardroom spying scandal intensified Thursday when the Securities and Exchange Commission ratcheted up its inquiry into the company's covert news-leak probe.
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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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(InfoWorld) - On the heels of a similarÂ suit filed Thursday by Verizon Wireless Inc., Cingular Wireless LLC on Friday suedÂ private investigators used by Hewlett-Packard Co. to obtain phone records of a CNET News.com journalist. Cingular filed suit in a U.S. District Court in Atlanta against Charles Kelly and CAS Agency Inc. alleging they used pretexting -- or pretending to be someone else to obtain phone records -- to get information from Cingular about customer Dawn Kamamoto, a CNET journalist that HP was investigating. Cingular also named "John Does 1-100" and "XYZ Corps. 1-100" in the suit to accommodate other private investigators that may not have been named who also were involved in obtaining information from Cingular, said company spokesman Mark Siegel. "Sometimes it's hard to identify who is in these companies and who runs them," he said "We [used those terms] to accommodate for the vagueness of the industry." During Congressional hearings Thursday about HP's investigation of journalists -- including Kamamoto and writers from the Wall Street Journal and BusinessWeek -- Kelly and CAS Agency were identified as investigators that HP used to obtain phone records information through pretexting, Siegel said. The defendants called customer service agents posing as Kamamoto to obtain her personal information, and also gained unauthorized access to her online account information, Cingular alleged in its filing. They then sold that information to HP. HP executives, including Chairman and Chief Executive Officer Mark Hurd, testified before the House Energy and Commerce Congressional Committee on Thursday about an investigation of journalists that took place in 2005 and earlier this year in an attempt to find out who at HP was leaking sensitive information to the press. The scandal has already forced Patricia Dunn to resign as HP's chairman and sparked investigations by the California attorney general and the U.S. House of Representatives. On Thursday, Verizon Wireless filed suit in New Jersey against investigators who used pretexting to obtain information about an HP director and that director's spouse, and then sold that information to HP. In its suit, Cingular is asking that a judge require the defendants to pay punitive damages to the company and be permanently restricted from: contacting Cingular for any reason, obtaining information about Cingular customers and advertising that they can obtain phone records from wireless companies about their subscribers. Cingular is also asking for the return of any information obtained about Cingular customers to the company. Cingular's Siegel said this is not the first time his company has filed suit against companies that have used pretexting to obtain customer information. "They call themselves data brokers -- we call them data burglars," he said. The company currently has several cases pending against other investigators who have used pretexting, which is not technically illegal, although Cingular believes it should be, Siegel added.
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A Georgia private eye involved in the Hewlett-Packard pretexting brouhaha is the target of a suit by Cingular. The company wants him to pay for obtaining customer info under false pretenses.
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(InfoWorld) - Hewlett-Packard Co. Chairman Patricia Dunn will answer questions on the spying scandal that has embroiled her company during a House committee hearing on Capitol Hill next week. HP's general counsel, Ann Baskins, will also appear at the hearing of the Subcommittee on Oversight and Investigations of the House Committee on Energy and Commerce, being held next Thursday, said HP spokesman Ryan Donovan. HP's lead outside counsel, Larry Sonsini of the Palo Alto law firm Wilson, Sonsini, Goodrich & Rosati, will also testify, according to Terry Lane, a committee spokesman. Sonsini advised HP on the legality of its investigation into media leaks of details from the company's board meetings between 2005 and 2006. Earlier this month, HP revealed it had hired outside investigators to find the leaker and that they had impersonated the subjects of their investigation in order to gain access to private telephone records. In the course of the search, HP board members and reporters were impersonated. The committee is looking into HP's methods and is considering new federal legislation that would make this practice, called 'pretexting,' illegal. HP is also being investigated by the Attorneys General of California and Massachusetts, the U.S. Federal Bureau of Investigation and the U.S. Attorney's office. Ronald DeLia of investigation firm Security Outsourcing Solutions is also set to appear, but Lane said it is possible he will invoke his Fifth Amendment right to not testify to protect against self-incrimination. Prosecutors reportedly are looking into DeLia's company and a Melbourne, Florida, investigation company, Action Research Group, in connection with the scandal. In a June 11 Congressional hearing on pretexting, several investigators invoked their Fifth Amendment rights and refused to answer questions on the practice, which is considered to be in a legal gray area. The committee has also asked HP Global Security Manager Anthony Gentilucci and Action Research Group owner Joe Depante to testify, but has not heard back from them, Lane said. HP has already provided the committee with "thousands of pages of documents" in connection with its investigation, Lane said. The pretexting scandal has been front page news for several weeks now and has forced Dunn to step down from her chairman's role, effective January. But it has not had much of an effect on the company's financial performance. HP's (HPQ) stock has hovered in the $36 range since news of the affair first broke three weeks ago. HP Executive Vice President Vyomesh Joshi, who runs the company's printing business, downplayed the effect that the scandal was having on HP's management. "I think our focus is business," he said in response to a question on the matter at the Bank of America's Annual Investment Conference in San Francisco Tuesday. "We have a very solid team who is focusing on the business, focusing on the execution. At the end of the day, that is what we want to do." Â
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SACRAMENTO, Calif  - California's attorney general on Wednesday sought felony indictments against former Hewlett-Packard Co. Chairman Patricia Dunn and four others in a leak scandal that involved spying on board members and journalists.
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(110 sec.) An update on the major players in the Hewlett-Packard spying scandal.
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House committee calls more witnesses to testify in HP scandal.
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(InfoWorld) - A criminal case against some of the people implicated in theÂ Hewlett-Packard pretexting scandalÂ may wrap up Thursday in a courtroom in San Jose, California. A hearing is scheduled in Santa Clara County Superior Court in the cases against former HP legal counsel Kevin Hunsaker, private investigator Ronald DeLia, and research consultant Matthew DePante. At a hearing in March, a state judge said charges against the three defendants would be dismissed if they performed 96 hours of community service and paid restitution to the victims. At that same hearing, state charges against former HP chairman Patricia DunnÂ were dismissedÂ altogether. Dunn was chair of HP in 2006 when the board authorized an investigation to find out which directors had been leaking details of confidential board deliberations to news reporters. The private investigative firms hired by HP engaged in a practice known as pretexting, in which they pretended to be someone else to obtain phone records of other individuals. HP directors, employees, and several reporters had their private phone records revealed under those false pretenses. The scandalÂ resulted in the departureÂ of three directors, including Dunn, from the HP board. Dunn and the three men had beenÂ chargedÂ with fraudulent wire communications, wrongful use of computer data, identity theft, and conspiracy, in a case brought by the Attorney General of California in October 2006. The hearing Thursday had originally been scheduled for sometime in September, but may have been moved up because the defendants met the judge's requirements for dismissal, said Carl Schulhof, a spokesman for the Superior Court. State charges were dropped against a fifth defendant in the case, Bryan Wagner, after he pleaded guilty in January to one count of conspiracy and one count of aggravated identity theft. He was a contractor who engaged in pretexting to gain access to phone records. Wagner's sentencing on the federal charges was postponed to October, his attorney Stephen Naratil, said Tuesday.
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By JORDAN ROBERTSON  SAN JOSE, Calif. - California's attorney general could file criminal charges within a week in the boardroom spying scandal at Hewlett-Packard Co., a spokesman said Wednesday, and experts say the company's top brass and third-party detectives are all possible targets.
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Request comes as criminal charges still hang over the head of former HP chairman and others in connection with spying campaign.
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Cingular Wireless LLC, the nation's largest cell phone provider, on Friday sued a private eye caught up in the scandal over the Hewlett-Packard Co. leak investigation, seeking to make him pay for allegedly obtaining customer call records under false pretenses.
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Hewlett-Packard says it discussed allegations that employees spied on rival, but Dell wants more thorough investigation.
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SAN FRANCISCO -- The probe into who knew what, and when, about spying at Hewlett-Packard Co. threatened to reach into the chief executive's office yesterday, rattling investors, who feared the world's largest technology company was sailing into a perfect storm.