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H-P scandal reaches state

Littleton man suspected in phone records case gets subpoena from Congress

Jeff Smith, Rocky Mountain News

Published September 28, 2006 at midnight

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Colorado, long a hub for data brokers who obtain private phone records through pretext or impersonation, is being firmly linked to the Hewlett-Packard scandal.

Congressional investigators on Wednesday issued a subpoena to a Litteton man, Bryan C. Wagner, suspected of obtaining phone records for H-P.

Subpoenas also were issued to four other individuals, including Darren Brost, of Austin, Texas.

Wagner and Brost both were trained in the 1990s by James Rapp, of Parker, who pleaded guilty in 1999 to racketeering charges related to selling confidential information. Rapp, 46, says Wagner, 29, is his nephew.

Wagner, Brost and others have been called to testify today in front of a U.S. House Committee on Energy and Commerce panel, which is probing the scandal over how H-P obtained private phone records of company directors and news reporters.

H-P's ousted chairwoman, Patricia Dunn, said in prepared testimony in advance of the hearing that she was following her duty to prevent boardroom leaks of confidential information, that others at H-P also had a hand in the decision to investigate and that she "never doubted" the legality of the methods.

The Wall Street Journal reported that Wagner already has destroyed his computer. Wagner couldn't be reached for comment.

Rapp said in a telephone interview Wednesday that his nephew was on his way to Washington and he didn't know whether Wagner would testify or invoke the Fifth Amendment against self-incrimination.

Colorado information security consultant Rob Douglas, who has testified in front of Congress about the industry's abuses of privacy, said the various relationships raise questions about whether Rapp also is involved somehow in the H-P case, perhaps in parceling out work.

Rapp confirmed he trained both Wagner and Brost in the 1990s and that Brost briefly lived with his family.

"But I didn't know whether he was dead or alive until I saw his name" Wednesday, Rapp said.

Rapp maintained he hasn't been involved in the data-broker business since 1999 except to have "trained a few people at personal seminars."

"I haven't picked up a phone for a profit since 1999," Rapp said. "My employees I trained were good - what else can you say?"

Douglas' suspicions also have been raised because Rapp used to do a lot of business with Joseph DePante, owner of Action Research Group, a Florida investigative firm identified in press reports as being a subcontractor in the H-P case. The New York Times reported that Rapp said Wagner had worked for Action Research.

Rapp said he last talked to DePante three months ago just to catch up personally, and he maintained he was misquoted by the Times about his nephew's relationship with Action Research. Rapp said while he referred Wagner to Action Research for work in 1999, he doesn't know specifically whether Wagner has been working for Action Research.

Rapp also denied he recently may have suggested to Wagner that he should destroy his computer.

"I talked to him and said, 'You better be careful with what you have.' I never used the word 'destroy.' "

Rapp's data broker business generated as much as $1 million a year in the 1990s, and he has said he saved enough money to now primarily be a caretaker for his ailing mother.

Douglas said the recent reports also raise questions about why Colorado law enforcement officials haven't done more to crack down on the industry.

He noted several Colorado data brokers, including state Rep. Jim Welker, were linked earlier this year to the sale of private phone records and were called to testify in front of Congress in June.

In addition, Colorado enacted a law this year banning the sale of private phone records. But no action has been taken by state authorities.

"You really have to wonder when Colorado law enforcement is going to get serious looking at this issue," Douglas said.

The Colorado attorney general's office didn't immediately comment.

Wagner's name emerged after it was determined that the person who obtained an H-P director's private phone records did so from a Cox Internet service address in the Omaha area. Wagner has lived in Omaha and the Denver area.

Richard Turley, a University of Northern Colorado professor who has followed the case and teaches computer forensics, said Wagner could have used his computer on the day in question from a remote location such as Colorado and the Internet address still would have shown as being in the Omaha area.

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