28
September
2006
|
01:05 AM
America/Los_Angeles

Morning questioning of Dunn and Sonsini


A rough transcript of the morning questioning of Dunn and Sonsini.

Rep. Ed Whitfield:

Q: Mr. Sonsini, did you understand that pretexting was occurring?

A: At that particular time, I didn't understand pretexting. I turned to Baskins and Hunsaker and said we should respond to Perkins. Hunsaker sent me a report, Baskins sent confirming email, and I took that and went to Perkins and said, It appears it was done within legal limits.

Q: Ms. Dunn, did you receive opinion about the legality?

A: I didn't get a legal opinion. Hunsaker reported to me that every method was legal.

Q: We've determined the only legal opinion ever given was by John Kiernan, the lawyer for Delia, and the opinion was actually written by a law clerk. It would appear that HP at the highest level relied on opinion by the law clerk of an attorney who worked for a private investigator.

A: There was a memo with a second opinion that said it was legal.

Q: What was that?

A: It was not produced by the company.

Q: Mr. Sonsini: The California penal code prohibits fraudulently obtaining information from a public utility by false pretenses.

A: We concluded methods may have been used that implicated that statute.

Diana DeGette, (D-CO)

Q: Mr. Sonsini, as outside counsel, is this standard business practice in the industry to investigate leaks in this way?

A: I have never dealt with an investigation of this kind from a board.

Q: Pretexting?

A: No

Q: Going through trash?

A: Not to my knowledge

Q: Creating fake employee to sting a reporter?

A: No

Q: As counsel to HP, were you consulted about the scope and methods?

A: No.

Q: You received a memo that discusses the procedures, including "obtained ... 3rd party phone records ... including reporters phone records." And there's a footnote asserting the methodologies were all legal.

A: I focused on that footnote. I was concerned by scope of the investigation

Q: What did you do?

A: Nothing further. I asked Baskins about legality.

Q: Did you research it?

I was assured it was legal.

Q: Ms. Dunn says she didn't supervise the investigation. So Baskins gets opinion saying its OK and you rely on that opinion. It all seems very circular.

A: The investigation was done by HP legal. It wasn't until it was over that I was asked about it.

Q: Ms. Dunn: This fictitious Jacob character ... is it common practice to make up fake characters at HP?

A: I do not know. I would not come to my attention if it were. I really can't answer your question.

Q: You ordered the investigation.

A: I initiated it at the request of board. I was nonexecutive chairman.

Q: Look at Tab 21, Hunsaker says to Gentilucci. We need to get approval of Mark, Ann and Pattie. Tab 60 (2/26//06) Hunsaker email: "Here is the email we sent to Dawn Kawamoto. You knew this operation was going on.

A: Yes

Q: Did you think there was a problem with this?

A: At no time was I responsible for designing its methods ... This did raise a concern. I didnt' want to be the person who authorized it.

Q: What did you do about it

A: I sent the team to management for approval.

Q: Who was that?

A: Mr. Hurd.

Q: What did you say to Hurd?

A: I dont remember a conversation. I told the team to talk to Hurd.

Q: You didnt mention it to anyone?

A: I asked Hurd to look into it. I understand they gained the approval they were seeking.

Q: Mr. Sonsini, you saw a report that talks about Jacob. Were you familiar with it? Did you have concerns?

A: That was not my focus I was retained to do.

Chairman Barton:

Q: Ms. Dunn: You claim your position is unique in that you dont have direct staff. Who reports to you?

A: No one.

Q: You're an administrative adjunct to the board

A: Its a coordinator role.

Q: There were leaks from board meetings

A: Yes.

Q: Was the board divided or unified? Were there schisms?

A: After I became chairman, I became highly cognizant of deep schisms on the board.

Q: What steps did the board take before you resorted to these sordid methods?

A: The first inquiry began under Carly. She asked Sonsini to talk to every director one on one and seek confession of the leaker and to reassert their commitment to confidentiality. The reason the board was so concerned was that no one had come forward to admit leaking.

Q: How were you directed?

A: Next to finding the new ceo, my top priority was to identify the leaks. Seven of the nine directors came to me and asked me to investigate the leaks.

Q: There was never a vote?

A: No.

Q: Kona 1 used pretexting?

A: I believe it did. I'm sorry I've just been corrected. ... I dont know.

Q: When did you learn pretexting was being used?

A: In the sense of the word we're using it today - fraudulently - this was not something I understood until July 2006 as a possible component of either investigation.

Q: Did you clear this with Hurd?

A: He wasn't with HP in the period when i was first named chairman.

Q: Who did you call?

A: Bob Wayman, the longserving CFO of HP.

Q: You had no management responsibility.

A: He was a fellow director.

Q: He was one of the directors who wanted to investigate

A: Yes. He directed me to Huska, who directed me to Delia.

Q: Was this personal? Was this do whatever takes?

A: There was never any question the board expected the investigation to be done legally and ethically.

Q: Well if seven of nine wanted it, I would start with the two who didnt

Q: I provided informatin to investigators about who wanted it and who didnt it. I was

Q: If I called you up and asked for your phone records, would you give me that?

A: If I understand ...

Q: No. I just called you up?

A: In your position, I would.

Q: Well, praise the Lord. I wouldn't give you mine

A: I hope that doesn't mean you have something to hide.

Q: If I want your records as a congressman, I can get them via subpoena. But as an individual I can't just peruse your records without permission. And i shouldn't be able to. This committee is concerned because use of pretexting ignores what most people understand as right and wrong.