HP spying scandal: 'Not guilty,' pleads Dunn

Patricia Dunn, the former chairman of HP, has pleaded not guilty to felony charges that stemmed from her role in overseeing a company probe into boardroom leaks.

At a brief arraignment hearing in Santa Clara County Superior Court, Dunn's lawyers entered her plea and she was released on her own recognisance.

Dunn, 53, is at the centre of a corporate spying scandal at HP, which the company has acknowledged involved obtaining private phone records belonging to HP board members, employees and at least nine journalists.

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California's attorney general has charged Dunn and four other people linked to the spying with four felonies, including identity theft and conspiracy. The charges could bring a prison sentence of up to 12 years.

The criminal case also threatens to drag HP's name back into the headlines for months. Ralph Sivilla, a state deputy attorney general, said outside the courthouse there is no timetable for when the case might conclude. Dunn and the other defendants are next due in court for a status report hearing on Friday.

HP, one of Silicon Valley's most respected companies, has seen its reputation tarnished by the scandal. Prosecutors have said Dunn drove the HP investigation, which began in 2005, in an attempt to locate the source of the leak on HP's board.

While there are hundreds of emails, memos and other documents that show Dunn was involved in the spying operation, she denies knowing HP investigators used the controversial practice of pretexting to obtain information.

Prosecutors have been tight-lipped about the evidence against Dunn. But there is speculation some HP employees involved in the spying operation may be co-operating with authorities. Asked whether HP's former general counsel is co-operating with prosecutors, Sivilla said: "Ms Baskins is not formally a witness."

Asked about the status of Anthony Gentilucci, HP's former chief of investigations, Sivilla declined to comment. Baskins and Gentilucci, neither of whom has been charged, resigned from HP after the spying operation became public.

Greg Sandoval writes for CNET News.com