-jma
http://money.cnn.com/2007/03/14/technology/hpq/index.htm?cnn=yes
Charges against HP's Dunn dropped
Dunn avoids jail time as judge throws out charge against ex-HP chair,
citing her battle with cancer.
By Rob Kelley, CNNMoney.com staff writer
March 14 2007: 3:42 PM EDT
NEW YORK (CNNMoney.com) -- A state judge in California Wednesday
dropped the charges against ex-Hewlett-Packard chair Patricia Dunn,
who was accused of wire fraud in the company's boardroom spying scandal.
Dunn originally faced four felony charges and jail time in the case.
Three other defendants - Kevin Hunsaker, Ronald DeLia and Matthew
Depante - pleaded "no contest" to the wire fraud charge, a
misdemeanor in California.
Earlier today the California Attorney General's office issued an
incorrect press release stating that defendants would enter guilty
pleas to the wire fraud charges.
Hunsaker is HP's former senior lawyer. DeLia is a private detective
and owner of Outsourcing Solutions. Depante is a co-owner of Action
Research Group, which is alleged to have surreptitiously obtained and
sold confidential phone records.
DeLia and Depante were hired by HP in the boardroom probe.
The court did not accept the pleas of the other three defendants and
offered to dismiss the charges against them if they met two
conditions. By Sept. 12 they must serve 96 hours of community
service, and complete any court-filed restitution requests made by victims.
The court dismissed Dunn's charge Wednesday due to her ongoing battle
with ovarian cancer, according to the attorney general's office.
The dismissal came "not because she's innocent but because she is
sick," attorney general's office spokesman Nathan Barankin told CNN.
Dunn had breast cancer in 2000 and melanoma in 2002, and was
diagnosed with ovarian cancer in 2004 and is still battling it. She
also underwent extensive surgery last year after doctors discovered a
malignant tumor in her liver.
"I have always had faith that the truth would win out and justice
would be served - and it has been," Dunn said in a written statement.
The dismissal of charges in this manner "does not happen terribly
often but this is something that the court came up with on its own,"
Barankin said. However, the California attorney general's office
"strongly suggested we do this," he added.
Dunn's arrest will remain on her record, according to Barankin.
As HP chairwoman, Dunn initiated two separate investigations - one in
2005 and one in 2006 - into which member of the board of directors
had leaked private HP information to the media.
It was later alleged that the probe involved questionable practices,
including pretexting - obtaining personal confidential information
through false pretenses - to spy on HP directors, journalists and
employees. The allegations sparked state and federal investigations.
Dunn resigned from both her role as chair and from the board after
the scandal became public last September. Mark Hurd, HP's current
CEO, replaced her as chairman of the board.
Dunn was originally charged with four felony counts: conspiracy, wire
fraud, stealing computer data, and using personal ID information
without permission.
In December, the five defendants were offered a plea deal reducing
the state felony charges to misdemeanors, in exchange for guilty pleas.
Although September was a rocky month for HP, its stock actually rose
a bit that month, ending at $36.69. It has since climbed to nearly
$40 as HP continues to execute strongly in the PC and printer markets.
HP (up $0.29 to $39.84, Charts) shares rose 0.6 percent in
mid-afternoon trade Wednesday.
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Received on Sat Mar 02 2024 - 00:57:22 CST