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Attorney General Lockyer's Office Files Criminal Charges Stemming from Oracle ELA Agreement

Complaint Alleges Policy Director Under Former Governor Davis Falsified Documents
Tuesday, March 2, 2004
Contact: (415) 703-5837

(SACRAMENTO) – Attorney General Bill Lockyer today filed a twelve-count felony criminal complaint against Kari Dohn, who served as policy director for former Governor Gray Davis, alleging she altered documents relating to the Oracle Enterprise License Agreement (ELA).

"Every public servant owes a special trust to the people of California," Lockyer said. "Doctoring evidence submitted to government investigators is a serious violation of that trust and a crime. Our investigation has been exhaustive, but these are the only criminal violations we have discovered relating to the ELA. Our investigation will remain open, however, in the event any new evidence is forthcoming."

Filed in Sacramento County Superior Court, the Attorney General's complaint alleges Dohn made six separate modifications to her computerized schedule and internal progress reports after Joint Legislative Audit Committee (JLAC) launched an investigation into the agreement. The records allegedly falsified by Dohn related to the ELA negotiations and its subsequent approval.

Dohn's six modifications violated felony provisions of both the Penal and Government Codes, according to the complaint. Penal Code section 134 makes it a felony to falsify evidence with the intent to submit it for any fraudulent or deceitful purpose in a trial or other proceeding. The crime is punishable by a term of 16 months, 2 or 3 years in prison. Government Code section 6200 makes it a felony for any government official to willfully falsify public records, and is punishable by a term of 2, 3 or 4 years in state prison. Although each of the six alleged acts constitutes a violation of both the Penal and Government codes, the complaint charges them in the alternative.

Lockyer's criminal complaint results from a lengthy investigation spawned by the Davis Administration's decision to sign an ELA agreement for Oracle software in May 2001. In early 2001, representatives from the departments of Information Technology, General Services and Finance began discussions with Oracle and Logicon (a reseller of Oracle software) about the purchase and acquisition of an ELA. Negotiations intensified in May 2001, and the agreement was signed prior to a May 31, 2001, "deadline" that coincided with the end of Oracle's financial reporting period. Beginning in August 2001, the first of several newspaper stories appeared raising questions about the ELA.

After the release of a highly critical report by the California State Auditor in April 2002, JLAC initiated legislative hearings and the Attorney General started his own investigation. The State Auditor's report and subsequent JLAC hearings determined senior Davis Administration officials approved the Oracle ELA over the objections of staff experts and without conducting an independent analysis of the need for, and benefits of, the contract. The JLAC hearings also revealed that six days after the ELA was signed, an Oracle lobbyist hand-delivered to an administration official a $25,000 contribution to Davis' campaign committee.

On May 6, 2002, Dohn testified before JLAC. Subsequently, JLAC requested and received from the Governor's Office documents related to the ELA. Also during 2002, eleven separate state agencies, including the Governor's Office, provided ELA-related documents and materials to the Attorney General's office.

The complaint alleges that Dohn made three modifications soon after JLAC initiated its hearings in April 2002, two on the day after she testified before the Committee on May 6, 2002, and one on May 14, 2002, one day after JLAC filed a request with the Governor's Office for ELA-related documents.

The Sacramento Superior Court has scheduled an arraignment hearing for 10:30 AM on Wednesday, March 3, 2004.

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04-029.pdf120.21 KB
04-029.pdf120.21 KB

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