The Deal
Thursday, November 26, 
12:06 am

Mesa CFO purged porn, not financial docs

  Share     E-Mail    Discussion    Print Story

Mesa Air Group Inc., charged with corporate espionage in its efforts to start a low-fare Hawaii-based airline, has a novel explanation for why CFO Peter Murnane deleted files from his computer a week after the company was sued: Murnane, the company says, was trying to cover up his interest in pornography.

Mesa stands accused by Hawaiian Airlines Inc. of using confidential information obtained while considering an investment in Hawaiian Airlines during its bankruptcy to instead start Go!, now an inter-island rival. Hawaiian Airlines’ case got a boost after it discovered e-mails that Murnane had sent looking for advice on how to delete files just days after the suit was announced, and after the company determined via a computer expert that Murnane had wiped out data on two laptops and a home PC using special software.

Continue reading below

Also on Dealscape

Mesa, which last week placed Murnane on 90-day leave, said in a court hearing Tuesday that other executives knew about Murnane’s special interests. According to a report in the Honolulu Star Bulletin, Mesa VP of legal affairs Chris Pappiaoanou “under questioning recalled an incident in late 2003 or early 2004 in which he came in to work on a Saturday morning and observed Murnane looking at adult content on Murnane’s computer screen.”

Hawaiian attorney Sidney Levinson, according to a Honolulu Advertiser story, called the pornography reference "a transparent effort to distract the court's attention," while outside observers called it “a desperate legal strategy.”

Desperate, perhaps, but the strategy might also prove to be shrewd. Given the choice of publicly admitting a role in corporate espionage or going public with an insatiable desire to look at porn, here’s betting that many would rather cop to the corporate charge. Seems that could be enough to create reasonable doubt that perhaps Murnane and Mesa are telling the truth.

Of course, Murnane’s credibility is likely to decrease considerably if he eventually claims he was only visiting those Web sites to read the articles. —Lou Whiteman

See TheDeal.com story on Hawaiian's suit
See Star Bulletin story 
See Honolulu Advertiser story





Post a comment





The Deal Pipeline

Deal Video


Inside The Deal: AlixPartners' Steve Deedy on Black Friday, the holiday season and retail bankruptcies.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

REIT IPO deja vu

Real estate sponsors that might wish to undertake an IPO will need to consider a wide variety of issues and begin to take action long before the first filing with the SEC.


Industry Insight

Loan-to-buy

Paulson's proposal to purchase an equity stake in Yellow Pages publisher Idearc is the second time in recent months an investor group has used its prepetition debt position to execute a bargain price 'exit LBO.'


Industry Insight

Managing your shareholder base

Growth companies and their PE sponsors should be wary of the pitfalls that arise when they layer on tiers of preferred stock.


footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg


©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.