July 2000

HP defends its crown jewel in court, while hired police are on the defense

Prosecution statements opening the trial of former Hardwarehouse owner Rich Adamson called the HP 3000 “the crown jewel of the computer industry.” At the same time the police task force which led the investigations leading to Adamson’s trial is bracing for a civil rights lawsuit after one of its members admitted in Washington state court he illegally tape-recorded employees during another search. The Adamson trial, where Assistant U. S. Attorney Christopher Sonderby is pressing the state’s case that Adamson defrauded Hewlett-Packard of the full value of HP 3000s with the help of two HP employees, was long on drama and intrigue in its early days. It included the statement that the HP 3000 was the pick of HP’s computer litter — a statement the company’s marketing hasn’t made clear during the entire prior decade. Chief among the prosecution’s witnesses was Deborah Balon, the former HP employee already convicted and turning state’s evidence about her role in the alleged plan to give Hardwarehouse exclusive pick of the 3000s returned to HP in leases and for trade-ins. Meanwhile, Adamson’s attorney said in his opening statement that Balon and her accomplice, former HP employee Mark Loriau, were the masterminds in the fraud. "The extortion escalated to the point that Deborah Balon was forcing Richard Adamson to pay her cat's veterinary bill. She bragged of her power,” said attorney Marcus Topel. Testimony was still being offered as we went to press with this issue.

Meanwhile in Washington state, a judge ruled that HP computer broker US Computer didn’t have the right to recover documents, computers and a tape seized in an HP-funded raid almost two years ago. But testimony in the hearing uncovered evidence that is expected to be the foundation for a civil rights lawsuit being prepared for US Computer against California police. In the hearing that wrapped up in late June, a member of the High Tech Crimes Task Force admitted that the task force illegally tape-recorded US Computer employees during the search. The judge also ruled that a copy of the SS_CONFIG program seized during the search was outside the bounds of the search warrant — but the judge reserved a ruling on returning the tape to US Computer, pending criminal actions against the company’s president Bill Conley in a California court. SS-CONFIG is an HP program used to increase user license counts for HP 3000s, and one of the key elements in the Adamson criminal trial. Representatives for Conley’s attorney in Washington state confirmed the civil rights lawsuit would target members of the California police who raided Conley’s business.


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