California state judge on Wednesday (March 14) dismissed
charges of fraud against former Hewlett-Packard non-executive chairman Patricia
Dunn for her role in the spying scandal that rocked Silicon
Valley and sent shockwaves through boardrooms
nationwide.
Three other
defendants in the case—Kevin Hunsaker, a former HP executive, and Ronald DeLia
and Matthew DePante, two private investigators the company hired to investigate
boardroom leaks to the press—pleaded no contest to one misdemeanor of fraudulent
wire communications, but Santa Clara County Superior Court Judge Ray
Cunningham said the charges will be dropped if each defendant serves 96 hours of
community service and makes restitution to victims.
The charges stemmed from a botched internal investigation
authorized by Dunn into leaks to the press made by board members. Outside
investigators hired by HP gained access to private phone records through false
pretenses in a practice known as “pretexting,” and used the information to spy
on board members, employees and reporters.
Soon after the
scandal erupted in September, Dunn resigned along with board member George
Keyworth and several other HP executives.
Dunn was initially charged in October along with the three other
defendants with four felony counts: use of false or fraudulent pretenses to
obtain confidential information from a public utility, unauthorized access to
computer data, identity theft and conspiracy to commit each of those crimes.
Each charge carried a maximum fine of $10,000 and three years in
prison.
Dunn, who is
suffering from cancer, issued a statement published on The Wall Street Journal’s Web site:
"I am pleased that this matter has been resolved fairly, and want to
express my deep gratitude to my husband and family, who never lost faith in me
throughout this ordeal. I have been strengthened by wonderful support during
this difficult time—both from my dear friends and from people I have never met.
I have always had faith that the truth would win out and justice would be
served—and it has been."
—Jeremy
Smerd