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California Nears Criminal Charges at H-P

Alexei Oreskovic

09/13/06 - 03:09 PM EDT

Any semblance that Hewlett-Packard's(HPQ) spying controversy was over following the company's recent boardroom shuffle quickly faded on Wednesday.

The California attorney general's office indicated that certain H-P insiders could face criminal charges within a few days, according to news reports.

"It could happen in a week," Tom Dresslar, a spokesman for the attorney general said in a Reuters report, adding that, "We're not going to confine ourselves to a specific timeline for any charges."

H-P, one of the world's largest tech companies, has been rocked by a scandal stemming from its efforts to stop media leaks. The company acknowledged last week that a private investigative firm it hired to look into the matter had used a technique known as "pretexting" to access the personal phone records of board members and journalists.

According to the California attorney general, pretexting, which involves using an assumed identity to access information, may violate state statutes regarding identity theft and unauthorized computer access.

The attorney general's office has said it is conducting an active criminal investigation into the matter. Until now however, it's been unclear whether the private investigative firm that H-P retained or H-P insiders would be held accountable.

In an interview on The NewsHour with Jim Lehrer on Tuesday night however, Lockyer reportedly said his office currently had sufficient evidence to indict people both within H-P as well as outside.

"Crimes have been committed. People's identities were taken falsely, and it's a crime," Lockyear was quoted as saying. "People accessed computer records that have personal information. That's a crime."

Among the H-P insiders who could get embroiled in the criminal case are chairwoman Patricia Dunn, who initiated the investigation and said yesterday she would relinquish her post in January. Ann Baskins, the company's top lawyer could also be at risk, since H-P's legal department may have had a role overseeing the ill-fated investigation into media leaks.

Shares of H-P were off 1.7%, or 62 cents, at 36.30 in late trading Wednesday.


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