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In the Media

article imageOusted HP Chairwoman Patricia Dunn Indicted on Four Felony Counts

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Chris
By Chris Hogg
Oct 5, 2006 in Business
By Chris Hogg.
Digital Journal ⎯ When a corporate executive attracts media attention, ideally it should be in the Bill Gates vein — congratulatory, respectful and rarely scandalous. But former Hewlett-Packard chairwoman Patricia Dunn is making headlines in a much more damaging way than she could ever imagine.
The former HP queen has now been charged with four felony counts in the company’s month-long spying scandal in which HP board members and other staff allegedly leaked sensitive information to journalists. Supposedly, they also obtained personal data illegally. Dunn now faces criminal charges in California, including identity theft and conspiracy.
The complaint alleges Dunn and former ethics chief Kevin Hunsaker knew HP’s outside investigators were obtaining personal phone records by lying to phone company employees, which California Attorney-General Bill Lockyer says is illegal.
Lockyer also charged Ronald DeLia (managing director of Security Outsourcing Solutions, an HP contractor) Matthew Depante and Bryan Wagner (two investigators with Action Research group) who DeLia hired to work on the HP investigation.
(View PDF copies of the complaint, warrants and press release about the charges)
"One of our state's most venerable corporate institutions lost its way as its board sought to find out who leaked confidential company information to the press," Lockyer told a press conference last night. "In this misguided effort, people inside and outside HP violated privacy rights and broke state law. . . Those who crossed the legal line must be held accountable."
The 53-year-old former chairwoman was forced to resign after an investigation revealed HP was looking into boardroom leaks to the media that began in 2005. Her lawyer, James Brosnahan, says charges “are being brought against the wrong person at the wrong time and for the wrong reasons.” In a written statement, Brosnahan says the indictment is "the culmination of a well-financed and highly orchestrated disinformation campaign."
And to think only a year ago Dunn ranked 17th on the Forbes list of the top 100 most powerful women in the U.S.
George Keystone, a primary investigation target who was accused of being a source of leaks, and well-known venture capitalist Tom Perkins both sat on the board and resigned to protest the investigation process.
Mark Hurd, the CEO appointed to fill Dunn’s shoes, admitted at a press conference two weeks ago he knew of the inquiry into the board members but didn’t know details. He is not charged.
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