since walking away from us in the office, michael lynch and other defendants in the complaint with the of california have denied the allegations against them. the case is moving through the california's courts, and get this, anderson, the group help hospitalized veterans continues to accept donations. >> unbelievable. drew, thanks. "the battlefield at home" continues. ahead, vets who have risked their lives for the country find themselves facing another battle on the home front, the fight to get their disability benefits they say they're entitled to. the doctors have vouched, the paperwork filed. what's the holdup? well, we're keeping them honest. was about...i would say... two months ago. i very rarely put gas in my chevy volt. i go to the gas station such a small amount that i forget how to put gas in my car. [ male announcer ] and it's not just these owners giving the volt high praise. volt received the j.d. power and associates appeal award two years in a row. ♪ >>> welcome back to "battlefield at home." this special about charities accused of lining their own pockets at the expens

. >> reporter: according to the charity's latest filings, the president of hhv, michael lynch, was paid salary of $389,000, and that's just the start. in its complaint, california authorities say money donated for hospitalized veterans also paid for memberships in these two country clubs near lynch's home. a cost of $80,000. donated funds paid for this condominium near washington, d.c., for the use of charity executives. according to the complaint, while help hospitalized veterans has been raking in millions of dollars, 65 million in just the past two years, according to tax returns, the charity has misled the irs and its donors about where the funds actually go. we know 44 million has gone to fund-raising. the charity says it spent 16 million on these kits for veterans. but the california attorney general's office questions the charity's accounting. >> there have been a number of misstatements to the irs and other regulators in order to suggest that the corporation is much more efficient than it in fact is. >> reporter: and it's not the first time the allegations have been made. califo

since walking away from us in his office, michael lynch and other defendants in the complaint with theate of california have denied the allegations against them. the case is moving through the california's courts, and get this, anderson, help hospitalized veterans continues to accept donations. >> unbelievable. drew, thanks. "the battlefield at home" continues. ahead, vets who have risked their lives for the country find themselves facing another battle on the home front, the fight to get their disability benefits they say they're entitled to. their doctors have vouched for them, the paperwork filed. what's the holdup? well, we're keeping them honest. >> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect what matters most.

. >> reporter: according to the chari charity's latest filings, the president of hhv, michael lynch,salary of $389,000, and that's just the start. in its complaint, california authorities say money donated for hospitalized veterans also paid for memberships in these two country clubses near lynch's home. a cost of $80,000. donated funds paid for this condominium near washington, d.c., for the use of charity executives. according to the complaint, while help hospitalized veterans has been raking in millions of dollars, 65 million in just the past two years, according to tax returns, the charity has misled the irs and its donors about where the funds actually go. we know 44 million has gone to fund-raising, the charity says it spent 16 million on these kits for veterans, but the california attorney general's office questions the charity's accounting. >> there have been a number of misstatements to the irs and other regulators in order to suggest that the corporation is much more efficient than it in fact is. >> reporter: and it's not the first time the allegations have been made. calif

since walking away from us in the office, michael lynch and other defendants in the complaint with thef california have denied the allegations against them. while the case moving through california's courts, get this, help hospitalized veterans continues to accept donations. >> unbelievable. drew, thanks. "the battlefield at home" continues. ahead, vets who have risked their lives for the country find themselves facing another battle on the homefront, their fight to get the disability benefits they say they're entitled to. the doctors have vouched, the paperwork filed. what's the holdup? back from rou. employees are being forced to do more with less. and the need for capable leaders is greater than ever. when you see these problems do you take a step back, or do you want to dive right in? with a degree in business from capella university, you'll have the knowledge to go further in your career than you ever thought possible. let's get started at capella.edu [ man ] hello!!!! hello!!!! [ all ] ohh! that is crazy! are you kidding me? let me see! oh! what! that's insane! noooo! mr. woodson

since walking away from us in the office, michael lynch and other defendants in the complaint with thetate of california have denied the allegations against them. while the case moving through california's courts, get this, help hospitalized veterans continues to accept donations. >> unbelievable. drew, thanks. "the battlefield at home" continues. ahead, vets who have risked their lives for the country find themselves facing another battle on the homefront, their fight to get the disability benefits they say they're entitled to. the doctors have vouched, the paperwork filed. what's the holdup? ...mom's smartphone... dad's tablet... or lauren's smartphone... at&t has a plan built to help make families' lives easier. introducing at&t mobile share. one plan lets you share data on up to 10 devices with unlimited talk and text. add a tablet for only $10 per month. at&t. that make kids happy. and even fewer that make moms happy too. with wholesome noodles and bite sized chicken, nothing brings you together like chicken noodle soup from campbell's. it's amazing what soup can do. capella unive

autonomy founder, michael lynch here with me coming up. for that. >>> up next, the latest conflict between israel and hamas rippling across the globe. bank of israel governor stan fischer speaks with me after this short break. >>> how's this for a geek factoid? fischer gave bernanke an "a" plus when he studied under him at m.i.t. stick around to see if he's still making the grade for stan fischer. a restaurant is hard, try running four. fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set

michael lynch was one of the founder of the company and running it until he was sum marly dismissed bywhitman, because add harder time making the numbers, which he did when they weren't actually autonomy but owned by hp. as for his part, mr. lynch said the former management team of autonomy was shocked to see the statement today, flatly rejects these allegation, they are false it took ten years build autonomy's industry-leading technology. stood see,has been mismanaged, he claimed, since the acquisition was done by hp. for all of that meg whitman says they still like the end product. >> we still like the business. we like the technology. we think it's going to be an important part of hp's -- hp software's growth strategy, but it is not as valuable as we had believed it to be because revenues are lower, growth rate, we believe, will be slower and the margin is not what was reported, which was in a 40 to 45% range. we now think more of a 28 to 30% range. >> which means they would have paid an awful lot less for it if they had over done the deal. many hp investors which they never heard t

even michael alacha and timothy lynch will admit it was a little more than that, scott. >> pelley: johni'm curious, did you ask michael and timothy what happened to their own homes? >> reporter: that's funny, while they were in the heart of midtown manhattan working on this, on the other side of the city, of course tim lynch's home was caught in the blackout. he's got no power at all. and michael alacha, his house is where you are in rockaway, and his house was flooded. so while they were focused on the city's problems, they didn't have time to think about their own. >> pelley: john, thanks very much. the hurricane, of course, has overshadowed the presidential election. but it is coming just the same in just six days. polls show president obama and mitt romney in a virtual tie nationally. in swing states that will tip the balance, a new quinnipiac university cbs news/"new york times" poll finds the president ahead by two points in virginia, 49% to 47%. he leads by five points in ohio, 50% to 45%. and the president is ahead by a single point in florida. 48% to 47%. mitt romney took his c

we had michael lynch on, the founder of autonomy, a week and a half ago.e said it's absolute nonsense. we didn't dupe anybody. they're masking, you know, their problems with the fact that they're blaming autonomy. so how does that slip through, and do you think that the problem is autonomy or are they just using this to hide their other issues? >> well, first, it's one of the reasons why i said a systemic issue appears to be a lack of quality due diligence because autonomy, whether it was fraud or not, it's quite remarkable to write off both eds and autonomy in less than a year. i mean, that's billions and billions and baillions of dollas the company is acknowledging is value destroyed. i'm quite sure that meg whitman believes that fraud was committed, or i don't think she would have taken the step that was taken. i'm also not at all surprised that dr. lynch would come out and defend himself and his company with great vigor because, as you pointed out in your interview with him, his reputation is at stake in a very fundamental way. i guess the final thing

tracy: the battle between hp and michael lynch getting vicious with both sides trading jabs.onesy is back. >> i am the first to a bit the whole saud is want the with accounting irregularities the way autonomy record did revenues but the way this is so publicly unfolding i brought you a public statement that mike lynch the former ceo put out of mac hp should provide me with the interim report or any of the document that you say that alleges i did anything wrong instead of selective disclosure to the public. " hp fires back we had have uncovered extensive evidence on behalf of certain and former employees to inflate the underlying metrics we think it is the correct message to wring out the facts we look forward to hearing anybody answer to questions under the penalty of perjury. there will take this into court questions about autonomy and what they have done but the company has to look inside itself. there has been a lot of finger-pointing but they did conduct -- conduct meticulous due diligence remember that etfs deal then meg whitman approved the upon a repurchase while the b

after autonomy's founder and ceo michael lynch was fired by meg whitman, sources close to the company tell me a senior executive from autonomy came forward with evidence of widespread accounting misrepresentations that occurred before it was bought by hp. hp began an investigation and concluded that these accounting improprieties inflated the value by $5.3 billion. the ceo then relied on audited financials when making a bid to buy the company. those financials were audited but there were plenty of investors out there who questioned autonomy's growth rate. sources close to the company allege that autonomy pursued a number of avenues to make margins, growth rate and overall value appear far higher than it actually was. the company was selling computer hardware. desk top computers, it's a software company at a loss to supplement revenues and then taking the cost of that as a marketing cost so gross margins would not be impacted. they will sell it directly. you want to sell it to original equipment manufacturers giving it the appearance that they had strong growth. finally, sources close

michael lynch, one of the founders of autonomy, who had run at hp.heard from him last yesterday saying in an interview. there was nothing done at the company under his watch that would in any way indicate anything like the types of charges being made by hewlett-packard. he said as well that he was not even aware of the investigation that had been going on since late may when a so-called whistle-blower came to hp's management and detailed some revenue recognition issues brought to our attention yesterday. i can tell you sources close to the company, being hp, they find that hard to imagine he wouldn't have been aware given all the questions being asked by hp's management over the last few months and by pricewaterhouse coopers as it began and continued that investigation on behalf of the company into autonomy's accounting. we have heard from deloitte, the firm that audited autonomy's numbers. they say they were not engaged by hp or by autonomy to provide due diligence in relation to the acquisition of autonomy. deloitte you can was auditor to autonomy

michael lynch was fired by meg whitman sources close to the company tell me a senior executive from autonomyh evidence of what they were calling widespread accounting fraud that occurred at the company before it was bought by hewlett-packard. hewlett-packard began an investigation and now almost seven months later concluded these accounting improprieties inflated autonomy by $5.1 billion. they did rely on the audit the financials when they made the bid to buy the company. the financials were audited by deloitte. sources close to the company allege autonomy pursued a number of avenues to make its margins and growth rate and overall value appear far higher than it actually was. apparently the company was selling computer hardware, first of all it was a software company, what it was doing selling desktop computers, laptops, mouses, they sold them at a loss to supplement revenues and took much of the cost of the sales and treated it as a marketing cost so gross margins would not be impacted so you show significant revenues without the costs associated with them. these were sold at a loss. the co

that management team led by co-founder and ceo michael limplynch who's been aggressively refuting charges. yesterday dr. lynch told cnbc he was blindsided. >> we're shocked. we've been pretty ambushed by this today. first we heard about it was a press release and we actually refute them. these are absolutely factually incorrect. we'd like to learn more about them. i'm afraid the details haven't been shared with us. >> that of course being the charges leveled against them. sources close to the investigation tell me that while lynch may not have known charges of accounting fraud were going to be leveled at his former company, he was the recipient of many questions about specific transactions from those investigating on behalf of hp after he had left the company. sources tell me he and other former members of autonomy were asked during a meeting last june with representatives of hp, specific questions about many of of the practices that hp brought public yesterday whether it said it had essentially been duped by autonomy. sources close to the investigation tell me lynch's answers were vague, unhelpful and he was

lynch for two of his 11. later, howard again, to clear for 2 points. terps win big tonight, 67-45. >>> after suffering a pretty significant concussion sunday against the cowboys, eagles quarterback michaelick will not play this weekend against the redskins. in fact, he could sit out for the rest of the season. the eagles will start rookie nick foals out of -- foles out of arizona subpoenaed. will be an interesting matchup. >> vick not having the best of season. >> andy reid said

lynch for two of his 11. later, howard again, to clear for 2 points. terps win big tonight, 67-45. >>> after suffering a pretty significant concussion sunday against the cowboys, eagles quarterback michael vick will not play this weekend against the redskins. in fact, he could sit out for the rest of the season. the eagles will start rookie nick foals out of -- foles out of arizona subpoenaed. will be an interesting matchup. >> vick not having the best of season. >> andy reid said it's pretty significant so they could sit him the rest of the season. we'll be right back. >> i kind of miss those political ads. not really. >> no, we really don't. >> that's our broadcast. thanks for sticking around. >> don't forget, we're always on at wusa9.com. and mr. letterman is next. good night.