Toner News Mobile Forums Latest Industry News *NEWS*3 SUBPOENAS FOR HP TESTIMONY

Date: Tuesday September 26, 2006 10:21:00 am | Views: 142
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    House Panel Subpoenas Three for HP Testimony
    (Sept. 06) – Three people involved in Hewlett-Packard Co.’s efforts to
    unmask a boardroom leak have been ordered to testify at this week’s
    congressional hearing on the corporate spying scandal that’s so far
    claimed the company’s chairwoman and two directors.The subpoenas are
    the first issued by the panel in its investigation. They were served
    over the weekend, according to a congressional aide who asked not to be
    identified because the investigation is continuing.Until now, the
    invitations to testify at Thursday’s hearing had been voluntary and
    other witnesses had accepted them.The subpoenas from the House Energy
    and Commerce Committee went to Kevin T. Hunsaker, the technology
    company’s chief ethics officer; Anthony R. Gentilucci, who manages HP’s
    global investigations unit in Boston; and Ron DeLia, the operator of a
    detective firm hired by HP in the elaborate and intrusive investigation
    to trace the source of a boardroom leak.HP spokesman Ryan Donovan said
    Monday that Gentilucci has voluntarily resigned from the company,
    effective Tuesday.Hunsaker is also reportedly being let go as part of a
    housecleaning planned by HP’s chief executive, Mark Hurd, a person
    familiar with the matter said last week. The person asked not to be
    identified because the terms of their departure are still being
    negotiated.Donovan had no comment on Hunsaker, other than that he is
    still an HP employee.Also in response to the scandal, a coalition of
    pension funds in New York, Connecticut and North Carolina – which
    collectively own more than 30 million shares – filed a proposal Monday
    with HP to allow shareholder-nominated candidates to run for board
    seats.The Securities and Exchange Commission has scheduled an Oct. 18
    meeting about whether to allow shareholders to submit their own
    nominees in addition to those picked by the board.Determined to protect
    confidential board discussions, then-HP Chairwoman Patricia Dunn hired
    investigators who impersonated board members, employees and journalists
    to obtain their phone records. The detectives also spied on an HP
    director and concocted an e-mail sting to dupe reporter Dawn Kawamoto
    of CNet Networks Inc.’s technology news site.

    Federal and
    California prosecutors are pursuing criminal investigations of the
    company’s leak probe.DeLia, who runs Security Outsourcing Solutions
    Inc. of Needham, Mass., previously signaled that he would appear at the
    hearing but might invoke his Fifth Amendment right against
    self-incrimination and refuse to answer lawmakers’ questions. He had
    requested a subpoena from the committee as a legal formality, the
    congressional aide said.DeLia did not return messages seeking comment
    Monday.Documents have shown how deeply the investigators intruded into
    the personal lives of seven HP directors, two employees, nine
    journalists and family members of the targeted individuals.Dunn, who
    authorized the company investigation but has insisted she wasn’t aware
    of the extreme tactics used, resigned Friday. Hurd, who immediately
    succeeded her while retaining the CEO and president positions, called
    the investigators’ tactics “very disturbing” and apologized to those
    who were targeted in the investigation.

    Dunn and Hurd have agreed to testify at the hearing.
    in February pointed DeLia toward two board members he suspected of
    leaking information to journalists and made specific requests that the
    hired investigator obtain personal telephone records, a company
    document obtained by The Associated Press shows.The Feb. 3 e-mail from
    Hunsaker to DeLia contrasts with a Jan. 30 message in which Hunsaker, a
    senior attorney in HP’s legal department, expressed his concerns about
    the legality of the investigators’ methods in pursuing the company’s
    leak probe.”Thanks Ron. I now strongly believe it’s Keyworth,” Hunsaker
    wrote, referring to director George Keyworth, who resigned this month.
    He also suspected another board member, Tom Perkins, who quit the board
    this spring to protest the investigation’s tactics. He also asked DeLia
    to find out more about Keyworth’s wife.”I also think Perkins is leaking
    info for personal reasons, but I think BOTH January 23rd articles by
    Kawamoto were leaked by Keyworth,” the e-mail continued. “Can you
    please see if we can find out Marion Keyworth’s cell number and pull
    those records?”HP shares, which took a hit Thursday after news reports
    indicated Hurd might have played a greater role in the probe, gained 60
    cents, or 1.7 percent, to close at $35.71 in Monday trading on the New
    York Stock Exchange.

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