Actions Cause Resignations
Hewlett-Packard was concerned about leaks coming from its board meetings. The company’s non-executive chairman Patricia Dunn apparently directed an operation to find out the source of the leaks. The way the investigation was conducted may have been illegal.
The source of the problem is an outside investigation firm hired by H-P, Security Outsourcing Solutions, of Boston found out who was providing details of meetings by gathering telephone records of board members without their permission or knowledge. The process known as “pretexting” occurs when an investigator calls the phone provider and PRETENDS to be the person whose records are about to be viewed. The imposter is then given online access to phone records.
I have written numerous articles about this practice over the past year including stories about phone companies suing those who use this ploy. The latest was about A T & T suing to find out who was gaining permission without approval (Vol. II No. 6, September 6 , 2006).
Federal officials have started an investigation into the company’s actions, which could lead to three-year prison terms on each count as well as $10,000 in fines. The California Attorney General’s office has already stated they have enough evidence to file charges in that state.
A Hewlett-Packard attorney and outside counsel both assured the board members that the probe was legal. The outside counsel, now says he relied on the company’s legal counsel.
Ms. Dunn has since resigned from her chairmanship. Two other board members have left, one removed and the other resigned in protest. Mark Hurd, CEO of H-P, has assumed the chair in the interim.
The source of the problem is an outside investigation firm hired by H-P, Security Outsourcing Solutions, of Boston found out who was providing details of meetings by gathering telephone records of board members without their permission or knowledge. The process known as “pretexting” occurs when an investigator calls the phone provider and PRETENDS to be the person whose records are about to be viewed. The imposter is then given online access to phone records.
I have written numerous articles about this practice over the past year including stories about phone companies suing those who use this ploy. The latest was about A T & T suing to find out who was gaining permission without approval (Vol. II No. 6, September 6 , 2006).
Federal officials have started an investigation into the company’s actions, which could lead to three-year prison terms on each count as well as $10,000 in fines. The California Attorney General’s office has already stated they have enough evidence to file charges in that state.
A Hewlett-Packard attorney and outside counsel both assured the board members that the probe was legal. The outside counsel, now says he relied on the company’s legal counsel.
Ms. Dunn has since resigned from her chairmanship. Two other board members have left, one removed and the other resigned in protest. Mark Hurd, CEO of H-P, has assumed the chair in the interim.
posted by skgroner | 9:17 AM
<< Home