Arrest Warrants Requested for Former HP Execs, Others

By Colleen Taylor -- Electronic News, 10/5/2006

Patricia Dunn, the maligned former chairwoman of Hewlett-Packard Co., may be headed for jail time.

Attorney General Bill Lockyer Wednesday filed felony charges against Dunn and four other defendants, alleging they committed criminal offenses related to the use of false pretenses to access individuals' phone records during the company's probe of boardroom leaks to the media.

Kevin Hunsaker, former in-house lawyer and ethics chief for HP; Ronald DeLia, managing director of Security Outsourcing Solutions, an outside security contractor for HP; Matthew Depante, manager of Florida-based information broker Action Research Group (ARG); and Bryan Wagner, a Colorado-based employee of ARG, were all named along with Dunn in Lockyer's complaint.

HP's current chairman and CEO, Mark Hurd, was not named by Lockyer in the complaint. Both Hurd and Dunn testified in late September before a congressional panel to explain their roles in the spying scandal and offer apologies. Dunn stepped down as chairwoman of HP just weeks before that.

The felony complaint charges all five defendants with four felony counts: fraudulent wire communications; wrongful use of computer data; identity theft; and conspiracy to commit those three crimes.

All four counts carry a maximum prison sentence of three years. The maximum fine for each of the three underlying felonies is $10,000. A conviction for conspiracy to fraudulently obtain phone records, or conspiracy to unlawfully access and use computer data, carries a maximum fine of $10,000. Conspiracy to commit identity theft can bring a maximum fine of $25,000.

Lockyer's office will make arrangements with counsel for Dunn and Hunsaker to surrender to the arrests voluntarily. As for the defendants who reside outside California –  DeLia, Depante and Wagner – Lockyer's office will be making arrangements for their arrest and eventual extradition to California to stand trial.

"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 said in a statement. "In this misguided effort, people inside and outside HP violated privacy rights and broke state law. On behalf of Californians, who cherish privacy so much they enshrined the right in our state Constitution, those who crossed the legal line must be held accountable. That is my duty, and I will perform it in a manner that reflects the gravity and importance of this case."

The complaint alleges the defendants used "false and fraudulent pretenses" to obtain from a phone company confidential information, including the billing records of 12 individuals. The victims included HP board members and their family members, and reporters and their family members. The complaint alleges the defendants willfully and knowingly accessed, and without permission used, computerized telephone account data belonging to two HP board members and one journalist.

On the identity theft count, according to the complaint, the defendants willfully obtained personal identifying information – including names, phone numbers and Social Security numbers – on 13 Hewlett-Packard board members, journalists and family members. The defendants then used that information for an unlawful purpose, the complaint alleges.

Further, the complaint and supporting declaration detail how Dunn and Hunsaker knew the outside investigators obtained phone records through false pretenses. After acquiring that knowledge, the complaint and declaration allege, both Dunn and Hunsaker facilitated the continued use of the illegal means to obtain phone records, making both culpable for the crimes.

For example, with respect to Dunn, the complaint alleges she gave DeLia the home, cell and office phone numbers for HP board members in April 2005. Two months later, in a June 2005 briefing provided by DeLia to Dunn and Baskins, Dunn learned "telephone records were obtained by ruse from telephone and cellular carriers," the complaint alleges. Then, beginning in January, with full knowledge of the methods used to obtain phone records, Dunn participated in renewing HP's leak investigation, subsequently received regular briefings on its progress and therefore knew DeLia was again part of the investigation team.

Regarding Hunsaker, the complaint alleges he became aware in January that the outside investigators used by HP during the leak investigation obtained phone records by ruse. After learning of the subterfuge, Hunsaker nevertheless provided the investigators the home, cellular and office phone numbers for HP officials, according to the complaint.

The supporting declaration also details the roles of DeLia, Depante and Wagner. As described in the declaration, Dunn and Hunsaker retained DeLia to find the source of the boardroom leaks. DeLia hired ARG, managed by DePante, to obtain the phone records, and knew ARG obtained records through false pretenses. Wagner was employed by ARG and performed the actual work of unlawfully obtaining phone records through false pretenses, the declaration alleges.

HP could not be reached for comment on the charges.