Indictments Sought in HP Case

California's Attorney General will seek charges against former chairwoman Dunn and others in the Hewlett-Packard spying scandal

California Attorney General Bill Lockyer will seek indictments today against former Hewlett-Packard (HPQ) chairwoman Patricia Dunn and others involved in the company's corporate spying scandal, sources close to the case tell BusinessWeek.

Lockyer also is expected to seek charges against Kevin Hunsaker, HP's director of standards of business conduct, Ron DeLia, a Boston-based private investigator hired by the company, and two other outside investigators involved in a wide-ranging internal investigation into corporate leaks to the news media.

BusinessWeek did not learn what charges Lockyer is seeking. Hewlett Packard Chief Executive Mark Hurd was not expected to be charged, according to sources. Former general counsel Ann Baskins also was not expected to be charged, according to her attorney.

Attorneys for Dunn, Hunsaker, and DeLia could not be reached for comment.


The charges are being filed in connection with revelations that HP hired investigators who lied in order to obtain the personal phone records of HP directors and staff, and journalists, in efforts to track the sources of leaks to the press. Dunn instigated the investigation early in 2005 after BusinessWeek and the Wall Street Journal reported on an HP management shakeup that eventually led to the ouster of then-CEO Carly Fiorina.

The investigation was inconclusive and went dormant in mid-2005. But Dunn revived it in late January after the online news outlet CNET reported on a closed meeting of HP executives. That story quoted an unidentified source close to HP.

Baskins tapped Hunsaker to direct the investigation, which eventually pointed to HP director George "Jay" Keyworth. Director Tom Perkins, a friend of Keyworth's, resigned in May in anger over how Dunn handled the investigation. Keyworth eventually reached a settlement with HP and left the board as well. Dunn was ousted Sept. 22, and Hunsaker left the company in late September.

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