"[Lenzner's firm] used questionable tactics to obtain potentially
damaging documents from trade associations, conservative
groups..."

http://www.wired.com/news/politics/0,1283,37278,00.html

'Twas Oracle That Spied on MS
by Declan McCullagh

6:00 a.m. Jun. 28, 2000 PDT


 WASHINGTON -- Those mysterious private eyes who allegedly bribed
janitors for the trash thrown out by Microsoft allies turned out
to be financed by the Redmond software giant's most bitter enemy.

That's right: It was Oracle Corp.

The detective firm, Investigative Group International, used
questionable tactics to obtain potentially damaging documents
from trade associations, conservative groups, and other
organizations that are funded in part by Microsoft and have
opposed the Justice Department's antitrust lawsuit.

Oracle admitted late Tuesday that it had hired IGI to expose
links to the nonprofit groups.

"Left undisclosed, these Microsoft front groups could have
improperly influenced the outcome of one of the most important
antitrust cases in U.S. history," the company said.

The Wall Street Journal and The New York Times also reported
Oracle's involvement in Wednesday's editions.

Oracle CEO Larry Ellison is an outspoken fan of the Justice
Department's lawsuit and has called for a three-way breakup of
the Redmond, Washington software firm. Before and during the
antitrust trial, Oracle provided documents to government lawyers
that aided them in their investigation.

A private investigator who official records say worked for IGI
has been linked to attempts to pay janitors for the trash of the
Association for Competitive Technology, as first reported by
Wired News.

ACT President Jonathan Zuck said he wanted a public apology from
Oracle.

"They are revealed to be what they have been all along -- an
enormously successful firm willing to use politics and deceit to
win the war against Microsoft at any cost," Zuck said.

Oracle's statement did not explicitly acknowledge its involvement
with the ACT cash-for-trash episode, instead merely saying
"Microsoft also funded the Association of Competitive Technology
for the same exact purpose (of being a front group)." ACT
receives money from Microsoft, but has taken positions -- such as
opposing government intervention in the AOL-Time Warner merger --
that are not consistently pro-Microsoft.

Oracle did, however, acknowledge it had hired IGI to target a
libertarian and a conservative group.

"Oracle Corporation hired Investigation Group International (IGI)
to examine the activities of the Independent Institute and the
National Taxpayers Union. As a result, Oracle discovered that
both the Independent Institute and the National Taxpayers Union
were misrepresenting themselves as independent advocacy groups,
when in fact their work was funded by Microsoft for the express
purpose of influencing public opinion in favor of Microsoft
during its antitrust trial," the statement said.

The free-market Independent Institute in Oakland, California has
seen confidential documents obtained by computer companies and
leaked to The New York Times for an article that was critical of
the Redmond, Washington, software giant. The newspaper identified
the source of the leak only as a Microsoft rival.

"We thought we were getting involved in a high-level debate over
economic theory," said David Theroux, president of the institute.
"It's pretty pathetic if (Oracle's involvement) is true."

Oracle refused to answer questions, but the company funds the
Progress and Freedom Foundation, which has called for a breakup
of Microsoft.

Oracle has already benefited from the Justice Department's
antitrust suit.

Last November, the day of U.S. District Judge Thomas Jackson's
preliminary ruling against Microsoft, Oracle's stock jumped about
four percent.

In April, after Jackson ruled that Microsoft had violated
antitrust laws, Ellison's personal net worth soared to $50
billion, making him temporarily the richest man in the world.

In Wednesday morning trading, Oracle shares were at 82-1/2, far
above its 52-week low of 17-5/16.

Ellison has said he would like to see Microsoft split into three
separate firms, each with complete rights to all company
products. He once even went so far as to compare Microsoft's
let-us-innovate defense to Nazi propaganda.

On June 6, a woman identifying herself as Blanca Lopez offered
janitors $700 cash for documents in ACT's trash, according to a
report from P&R Cleaning Services Inc. to the building's owner.

Lopez refused to comment to Wired News.

Lopez offered money on two different evenings, and gained access
to the building using a cardkey from Robert M. Walters, who has
been a private investigator for IGI.

Walters rented an office in the same executive suite as ACT on
behalf of "Upstream Technologies," which appears to be a front
company. The company was incorporated in March in Delaware, which
does not require disclosure of corporate officers until one year
later.


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