HP spy saga: Ex-chairman offered plea deal

California's attorney general is offering former HP chairman Patricia Dunn and four others charged in the HP spying scandal a chance to plead guilty to a misdemeanour, according to a source.

Stephen Naratil, an attorney for data broker Bryan Wagner who is one of the defendants in the case, told the Associated Press the plea agreement tendered by state prosecutors would allow all five defendants to avoid four felony charges stemming from an investigation launched last year by HP to find the source of a news leak.

A source close to the case, who asked not to be named, confirmed Naratil's statement. Representatives for Dunn declined to comment.

Dunn, Wagner and three others were charged with identity theft, conspiracy, fraudulent wire communications and wrongful use of computer data. HP investigators obtained private phone records belonging to journalists and board members by duping employees of telephone companies, a process known as pretexting.

Robert Morgester, deputy attorney general, declined to comment.

It is unclear why state prosecutors would back off pressing the felony charges against the five defendants but recently California's case has come under pressure from federal authorities.

The US Department of Justice last week wanted the court to dismiss those against Wagner because of California's double-jeopardy laws. State penal code 656 states that a defendant can't be tried if he or she has already been tried for the same crime by another state or the federal government.

Greg Sandoval writes for CNET News.com