HP owns up to probing rank and file

HP's probe into news media leaks extended to the company's own employee ranks, the company's chairman said this week.

In a videotaped message to employees, Patricia Dunn said the same techniques that were used to obtain details about HP directors and journalists were also used on two employees.

Dunn said in a message on Tuesday, a transcript of which was provided by the company: "These techniques were practiced on a number of individuals including certain directors, two employees and a number of individuals outside the company, including journalists." An HP representative confirmed two current employees had their personal records targeted but would not identify the employees or say which records were accessed.

HP has come under fire for launching an investigation that employed the practice of "pretexting", or obtaining personal information under false pretences. The company has said phone records of nine journalists were targeted, as well as those of board members. Among those targeted were three CNET News.com reporters - a sister site of silicon.com - and the records of one reporter's father were also included.

California's attorney general Bill Lockyer said in a television interview on Tuesday his office believes it has enough information to bring charges against people both inside and outside the company. Charges could come within a week, according to a spokesman for Lockyer, although there is no set timetable.

The spokesman said: "They could come in a week; they could not come in a week. We are not confining ourselves to any specific timeline. We'll go when we are ready to go."

The FBI and the US Attorney's Office in San Francisco are also investigating, while a House committee has asked HP to turn over records. HP has said it is co-operating with all three investigations.

On Tuesday, HP said Dunn would step down as chairman in January and turned over that job to CEO Mark Hurd. Dunn will remain a director. Director George Keyworth resigned from the board on Tuesday. Keyworth said in an HP press release he was the source of a January CNET News.com story that had been at the centre of the leak probe but Keyworth also lashed out at the investigation.

He said: "The invasion of my privacy and that of others was ill-conceived and inconsistent with HP's values."

In her message to HP employees, Dunn apologised for the tactics used in the probe. Details of Dunn's message were noted earlier by the Financial Times.

She said: "If there was any way I could course-correct some aspects of the investigation, I would. I wish this had never happened. I apologise personally, deeply and sincerely to everyone affected in any way, either within HP or outside of the company."

In the message to employees, Hurd noted the company has "completed a thorough investigation".

Hurd said HP has taken action on recommendations made by its outside counsel, Wilson Sonsini Goodrich & Rosati. Among the actions HP has taken, Hurd said it is "engaging an external firm so that in the future, our investigative methods and processes are handled in a manner that not only complies with the law but also will be aligned to HP's Standards of Business Conduct". A company representative declined to say what type of organisation HP had hired, or to name the company.

HP has also retained another outside law firm to meet with federal prosecutors. HP has reportedly tapped Morgan, Lewis & Bockius to represent the company in its dealings with federal prosecutors, according to the legal periodical The Recorder. According to The Recorder, the two sides met on Monday, with HP making a "proffer" - that is an offer to talk about certain matters under certain conditions. An HP representative declined to comment on that report as well.

Ina Fried writes for CNET News.com