Redmond businessman admits fraud in
HP case
by Luke Timmerman
Times Eastside business reporter
The legal battle between Eastside
businessman Bill Conley and
Hewlett-Packard has reached a climax,
with Conley pleading
guilty to a federal wire-fraud charge and
agreeing to pay the
computer giant a $1.5 million settlement
to drop a racketeering
lawsuit the company had filed against
him.
The lawsuit settlement came yesterday,
days after Conley, 43,
signed a plea agreement with federal
prosecutors in Sacramento.
In the latter, he admitted paying a
Hewlett-Packard employee to
reveal competitors' bids for used servers
- a move that enabled
him to buy the equipment by submitting
slightly higher bids.
Conley's actions took place while he was
president of U.S.
Computer Corp., a Redmond computer
company. Under the
federal plea agreement, Conley faces up
to five years in prison
and a $250,000 fine. Sentencing is set
for Jan. 12.
According to the agreement, Conley
admitted paying $73,000 to
Mark Glazer, who worked in HP's Finance
and Remarketing
Division in Ontario. Conley also admitted
to paying for Glazer
family vacations and giving the family
gifts.
Lawyers for Hewlett-Packard said they
were "gratified" by the
guilty plea and settlement, and said it
sends a strong message HP
will not tolerate fraud. "It's a complete
vindication of
Hewlett-Packard's position throughout
this litigation, and it's a
complete repudiation of Mr. Conley's
statements," said Richard
Pachter, an attorney for Stevenson
O'Connell representing
Hewlett-Packard.
"If this was a complete vindication for
HP, then they would have
settled for closer to the $70 million"
the company had been
seeking in its suit, said Anne Bremner,
an attorney for Conley.
Conley had denied any wrongdoing.
Recently, the spotlight of the
case had shifted to Seattle as Conley's
lawyers showed how a
1998 police raid of his business was paid
for by
Hewlett-Packard.
Conley's lawyers, Bremner and John Henry
Browne, contended
software was improperly taken from
Conley's home.
Copyright © 2000 The Seattle Times
Company
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