The Billionaire, the Blackmailer & the Dark Lord:Murdoch Shakedown Artist?

[autorank]

We don’t know (my mystery partner and I) but we’d like to.

Nothing would bring down the Republican house of cards faster than a crisis ensnaring the God Father of Orwellian spin, Rupert Murdoch, supreme lord of News Corp which owns Faux and the New York Post.

Am I stretching or is there reason to believe that Murdoch might be involved in a shakedown? Take a look, “I report, you decide.”

Murdoch owns the NY Post. The NY Post’s “Page Six” is the hottest gossip page in America. A long time gossip writer for Page Six approached a California billionaire and offered to get bad publicity off of Page Six in return for lots of cash. The approach was made AFTER the billionaire had written Rupert Murdoch a personal letter asking Murdoch to stop the printing of lies about him on Page Six.

Murdoch never replied to that letter…or did he?


If you conclude that Murdoch is involved, then move to the head of the class, I don’t see how it could be otherwise.

The Characters:

Leading men:

The billionaire, the blackmailer and the dark lord.

Jared Paul Stern, 10 year contributor to Post Page Six gossip page.
Ronald W. Burkle, California billionaire; one of the worlds richest men and a major fundraiser for the Democratic Party
Rupert Murdoch, playing himself, owner of the NY Post

Smaller roles:
Richard Johnson, Editor of Page Six, the Post’s famous gossip page.
Sessa von Richthofen, : Johnson’s fiancée; got a great job with Revlon.

Cameo appearances:
Harvey Weinstein : the co-founder of Miramax films; major Democratic Party fundraiser and supporter.
Ronald O. Perelman, the chairman of Revlon: major contributor to Democratic and Republican Party; Clinton contributor who hired Monica Lewinsky when she left DC (fired her when this was exposed).

It is well worth reading the NYT Article of yesterday. This is outstanding journalism. There is more between the lines than in the actual story indicating that they have some great follow up to pursue. Remember, this is the most intense reporting you’ll see in decades because it’s a New York City Press War . The New York Times thinks it is superior to everyone, the Daily News hates the Post, and the Post wants to crush everybody. Here is the narrative from the NYT article.
NY Times coverage:
http://www.nytimes.com/2006/04/08/business/media/08post.html?_r=2&ei=5094&en=2b3608dee270d6ff&hp=&ex=1144468800&adxnnl=1&partner=homepage&adxnnlx=1144526503-29f7/bHAc8Hk4107PYk9IQ&pagewanted=print&oref=slogin

Here’s the sequence of events. What stands out? Hint, hint - the color red;)

1. Pate Six of the Post runs scandalous stories about billionaire Burkle, which are outright lies (flying his girlfriend to Aspen…he doesn’t fly, etc.).
2. Burkle has his lawyers complain to the NY Post Page Six group. The stories continue.
3. Burkle writes Rupert Murdoch directly asking him to stop the lies. 4. Mr. Burkle is approaches by Jared Paul Stern of Page Six. Stern who says he can reduce the negative coverage.
5. Burkle has his own investigators set up a sting where he catches Stern on video “demanding a $100,000 payment and a monthly stipend of $10,000 from Burkle in return for keeping negative information about him out of the paper.”
6 In the conversation, Stern also asks Burkle to (a) provide Page Six with scandalous information on the rich and famous and(b) invest in Mr. Stern’s clothing line “Skull and Bones.” (I’m not making this up)
7. Stern also tells Burkle that his boss’s fiancée, Ms. von Richthofen, has a great job with Ron Perelman and that another billionaire and Democratic fundraiser Harvey Weinstein has a special arrangement with the Post’s Page six to stay out of the paper. Ron Perelman is implicated with that same deal (Perelman gives to both parties and finds it annoying). 8. The story breaks when people who have seen the video tapes discuss it with reporters. 9. The Feds say that they are investigating.

The New York Times

April 8, 2006
In Page Six Inquiry, Gossip Swirls Around Gossips
By CAMPBELL ROBERTSON, ALLISON HOPE WEINER and WILLIAM K. RASHBAUM
http://www.nytimes.com/2006/04/08/business/media/08post.html?_r=2&ei=5094&en=2b3608dee270d6ff&hp=&ex=1144468800&adxnnl=1&partner=homepage&adxnnlx=1144526503-29f7/bHAc8Hk4107PYk9IQ&pagewanted=print&oref=slogin


The New York Post is cooperating with a federal investigation into whether a longtime contributor for the Page Six gossip column <10 years>— the avidly read daily log of wrongdoing, double-dealing and sexual indiscretions by celebrities both minor and major — tried to extort money from a California billionaire, according to a spokesman for the newspaper.

Several people involved in the investigation said the reporter, Jared Paul Stern, had been captured on a video recording demanding a $100,000 payment and a monthly stipend of $10,000 from Ronald W. Burkle in return for keeping negative information about him out of the paper. Mr. Stern was suspended Thursday pending the outcome of the investigation, and could be dismissed, according to Howard Rubenstein, the spokesman.

But while the accusations against Mr. Stern are serious, it is the specter — raised by at least three people who say they know what is on the tapes — that Mr. Stern implicated several celebrities and New York power figures in an undisclosed, symbiotic relationship with Page Six that prompted an extraordinary day of full-throated and at times gleeful gossip among those who love, hate and avidly read the column.

Those who say they know what is on the tape said Mr. Stern named Harvey Weinstein, the co-founder of Miramax films, and Ronald O. Perelman, the chairman of Revlon, as being among those who have had their coverage on the page finessed. Through a spokesman, Mr. Weinstein flatly denied any improper relationship with the column and its main editor, Richard Johnson.

[Lefty48197]

1. Bush pays people to print favorable stories

Murdoch charges people to not run unfavorable stories. Business as usual in Bushmerica.

[Trevelyan]

2. K&R Wow! More good news!! See the DU front page for The London Times

lies to muddy the complicated waters of the Niger forgeries.

Rep. Hinchey has a press release on his front page about a recent letter from Fitz that Hinchey is currently drafting a reply to... the Fitz letter is in response to Hinchey and 39 Dems signing a letter and meeting with Fitz to ask him to investigate the Niger forgeries and I think to handle the impeachment inquiry in the House. I wish I knew what Fitzy said in his recent letter to Hinchey. Keep asking and maybe Hinchey will let us know sooner rather than later.

[autorank]

3. Wow, thanks!

I read the Times article and thought, "oh shit." But it didn't occur to me that Murdoch would ruin the gem of his "emppire" by using the Times for Disinfo. Silly me. Good for Marshall!

[kster]

4. K&R

GOOD JOB AUTORANK !

[EFerrari]

5. K &R. I'll have to bookmark for later but, oy, these guys

are just unbelievable.

[autorank]

6. It's naughty too. Here's an interview with Jared Paul Stern - Salacious

http://www.blacktable.com/daulerio050119.htm

ROCK AND A HARD PLACE: JARED PAUL STERN, GOSSIP MONGER.
By A.J. Daulerio
01.19.05

Jared Paul Stern used to be big shit ... and now, he has a Website. Okay, so that's not entirely accurate. Stern's got connections, a career's worth of favors yet to be repaid and a cushy gig at the New York Post as their book review editor and a part-time Page Six scoundrel. Before this, the nattily dressed wordsmith was paid major beans at Star magazine as Bonnie Fuller's numero deuce. That didn't go so well, apparently. However, he's got a history of writing for many publications like the Wall Street Journal, Details, and, of course, a couple of magazines that died horrible deaths, namely Talk and Detour. (Oh, just read the about the whole darned thing in more flattering detail at JaredPaulStern.com.)

Yeah, this guy's got a few bones to pick. And what better place to do so than The Black Table's Q-and-A Mardi Gras called Rock and a Hard Place. So, let's commence bone picking.

[Judi Lynn]

7. Looks like Murdoch answered, it would seem. It'd always be easy

to stick a gossip columnist with the bad results if a situation came apart, but the advantage of having control over people with powerful political contacts is probably too attractive to a dirty player.

Stern would always only be the one left holding the bag, in case of an investigation, but the one who would gain the most is the one who controls the gossip columnist, right? Very little time passed between Burkle's message to Murdoch, and Stern's contact with Burkle's employee.

They previously moved right in on someone they saw as connected through Monica to Clinton well before they moved in on Burkle. God knows how many people with connections to the Clintons they've got now, since Hillary became New York's senator.

The last line in the N.Y. Times April 8th article sounds so dramatic, and probably true:

"We know how to destroy people," Mr. Stern said, according to a person reading a transcript of the meeting. "It's what we do. We do it without creating liability. That's our specialty."

It would be WONDERFUL if Burkle brought the whole house of cards down over this, but since life is so good to right-wing thieves, and murderers, I won't hold my breath.

I'm looking forward to more on this story. Thank you, autorank.

[meow2u3]

8. I'd like to see Burkle being awarded Fox News

Only then, with a Dem in charge, will Fox News be truly fair and balanced, as opposed to the unfair and unbalanced Murdoch.

[Judi Lynn]

9. Oh, wow. We can dream, can't we?

[Judi Lynn]

10. Exclusive: Gossip Writer Says, 'I Was Set Up"

Exclusive: Gossip Writer Says, 'I Was Set Up"
Paul Stern Claims Billionaire Targeted Him

By CHRIS CUOMO, RICHARD ESPOSITO and CHRIS FRANCESCANI



Writer Jared Paul Stern has been
suspended from the New York Post
while federal authorities investigate
allegations he tried to extort money
from a California billionaire. He claims
he was the target of a setup.(Getty
Images/Astrid Stawiarz)


April 9, 2006 — Embattled New York Post gossip writer Jared Paul Stern has come out swinging against the billionaire he's been accused of trying to extort $220,000 from in return for favorable coverage on the powerful gossip page.

Stern told ABC News, "I was the one who was targeted,'' claiming he was "set up'' by supermarket magnate Ron Burkle.

Stern said that Burkle contacted him last summer through a mutual friend in an effort to reduce the number of negative items appearing about him on Page Six.

On a videotape recorded by Burkle's security cameras and partially transcribed in The New York Daily News, Stern is reportedly heard describing working with the Post's Page Six as a "little like the mafia … a friend of yours is a friend of mine."
(snip/...)

http://abcnews.go.com/GMA/story?id=1823404&page=1

(Article was also posted in LBN)

[autorank]

11. OK Judi, what's your opinion here?

This is one of the stupidest excuses I've ever heard from an accused. Oh sure, Burkle has so little to do that he picks on gossip reporters. He's got to little to do that he participates in the "take down" himself.

I think that they've cut old Jared loose and they're letting him hang. If he were still part of the "deal" then they'd have a better story. This fits a * co/neocon pattern: Harris steals 2000 for them--they dump her; Libby earns a place in the 9th circle of Hell for them--they dump him; now this. Jared is a nasty piece of work. I think it's a mistake. What do you think?

[FogerRox]

12. take the dirty Mo fo's down KNR too

[mom cat]

13. I think that this story has a lot of ramifications. My first hunch was tha

Murdock was involved and that this case is just the tip of the iceberg. If Murdock is tied to this case or to an even wider pattern of blackmail, it could bring a lot of people down. This is getting to the core of the bushco crime mob's power tactics. Stay on top of this one. It is golden!
:dem::toast::bounce::bounce::smoke::smoke::smoke::yourock::smoke::smoke::smoke::bounce::bounce::toast::kick:

[autorank]

16. What other billionaire has ever been caught in a hands-on crime.

That's what gets me. Why on earth would Rupert fail to lay the "smack down" on the odious Jared? A peer to peer letter from a brother billionaire...the prospect of a well funded law suit...his certain knowledge that the stories were all lies. it's more than just feeling above the law, which is the case with Murdoch. If he failed to stop this, he's guilty without any further questions being asked. But there will be questions like, did he know Mr. Stern was following up with more threats? Will Stern pull a Libby? Are there pictures? ...;) I'm truly shocked!:blush:

[xchrom]

14. k & r

it'll be fascinating to see this play out -- i wonder how much of this will get on murdoch in the mind of the public?

and last what are the chances that murdoch is going to run up against the law re: this scandal?

[tishaLA]

15. Richard Johnson is apparently NOT a bit player in this

According to today's Daily News:

All play, no pay for Page Fix

The New York Post "Page Fix" scandal grew yesterday as those familiar with the gossip page painted a picture of an out-of-control institution where lavish gifts are routinely bestowed on columnist Richard Johnson and his staffers.

Johnson was feted at a bachelor party last month that cost in excess of $50,000 hosted by soft-core porn king Joe Francis at his palatial estate in Punta Mita, on Mexico's glorious Pacific coast. More than 2,000 miles from New York, the resort area boasts 343 days of 80-degree sunshine.

Francis, 32, producer of the topless "Girls Gone Wild" spring-break video series, flew the party from New York on his private jet. Francis appears regularly in the column, almost always in a positive way.

Johnson also got a free trip to the Academy Awards last month, paid for by ABC and Mercedes-Benz. The trip included first-class airfare, a three-night stay at the Four Seasons Hotel and a car and driver. <....>

[autorank]

18. Oh, I agree. The more scandal with these folks the better.

My reference to "smaller roles" was just the current roll out of the scandal. The Times also mentioned Francis, a total sleaze, and the ABC-Mercedes trip offered to Johnson. Then of course, there's his fiance Sessa with th obligatory job in the Perelman empire. You have to wonder what they're dangling in front of with the ABC-Mercedes citation, which seems totally random. I mean, who cares if they flew Johnson to the Academy Awards? It seems almost reasonable as a business entertainment expense. However, that's probably not why it's in the story. We'll see.

[HamdenRice]

17. Burkle was set to create WORKER OWNDED NEWSPAPER chain!

I have been reading and digesting this over the weekend, and although it now plays out as a bash-the-Post, newspaper war, this may be the most important story of the year, if it is a wedge into understanding why our press is so Orwellian and tame.

Also Burkle was about to organize a worker buyout of a chain of 12 newspapers -- something that centralized MSM corporations must depise.

Imagine, a socialist billionaire! The most dangerous man on the planet.

http://www.washingtonpost.com/wp-dyn/content/article/2006/03/24/AR2006032402048.html

Bid Would Shift Newspaper Ownership to Employees

By Amy Joyce
Washington Post Staff Writer
Saturday, March 25, 2006; Page D01

If all goes according to the newspaper union's plan, 12 newspapers that are for sale will eventually be owned by the workers themselves as part of a buyout effort by the Yucaipa Cos., a private equity firm.

Yucaipa will bid Tuesday on the papers that McClatchy Co. said it would sell when it acquired 32 dailies from Knight Ridder Inc. earlier this month. If Yucaipa's bid succeeds, employees will be able to invest in the papers through their retirement savings plans.

<snip>

Yucaipa is a Los Angeles-based private equity investment firm run by billionaire Ronald W. Burkle. The company has built much of its wealth around buying grocery chains, including Jurgensen's, Falley's and Alpha Beta. Burkle is a major Democratic fundraiser.

[autorank]

19. Here I am being prurient and you get the exclusive...this is the first tim

I've seen this. `Of course, you write some of the most thoughtful posts on DU so I expect this while I'm just being salacious.

This might be the hidden motive. More importantly, it might just explain my thesis, that the NYT was laying the ground work for a claim they may know but lack sufficient evidence to make -- that Murdoch was directly involved in the shakedown. With this as the motive, Murdoch would have to be involved, it would be required because stopping this sort of thing would be paramount.

Excellent!

I'd like to think that my theory of Murdoch's glee at actually doing this sort of thing plays into this but it's really ancillary.

Attn. NYT reporters: HamdenRice has broken the case, the motive to explain Murdoch's involvement in this tawdry affair -- stopping, at any cost, the formation of a News Commune in California

N.B. The McClatchy chain of papers is unapologetically Democratic;)

[HamdenRice]

20. On shakedowns, see the Daily News reporting

Hi Autorank,

Thanks for the compliment. The best reporting on this over the weekend was not in the Times, but in the Daily News -- probably because the News and the Post are locked in a kind of mutual NY tabloid death grip competition, a zero sum game in which every loss by one is a gain for the other -- whereas the Times just poopoos this in their reporting as a kind of anthropological study of how the lower orders of journalism carry out their work.

Although I thought the worker owned newspaper angle was important, given the Daily News' detailed coverage, I was more impressed by the tangled, highly developed world of transactions between prominent individuals, journalists and publicists (who this reporting fleshes out as brokers of information and favors), which might explain why the press overall pays such Orwellian non-attention to the scandals of the Bush administration. If you consider that it has already been revealed that so-called journalists like Armstrong Williams were directly bribed by the administration, and that the Bush administration has funneled billions to the public relations industry through contracts, it would not be implausible to infer from the News' reporting that virtually any kind of coverage can be purchased through the "favor banks" of publicists, advertising companies and public relations firms.

Keep up the good work, yourself, although I'm a little skeptical that the MSM is going to report extensively on how the MSM's coverage is bought and sold like cheap penny stocks.

[autorank]

22. A NY Press war is a wonderful thing to behold...wonderfu.

And yes, it probably is about buying and selling favors...CM is a cesspoll of self generating
and perpetuating bile that they cough up on a regular basis and call "news."

Using a very recent analogy, we can view Jared Paul Stern as the cooperating ersatz Judas
willfully revealing the true nature of the beast to liberate us. Long live Jared!

I still think you're on to something and it's worth looking into, well sort of, more worth
reasoned speculation based on some evidence (not complete), which would place both of us,
and almost all DUers well above the standards of MSM/CM.

Cheers.

[Blue_Tires]

21. ttt n/t

[bleever]

23. Kick!

Sure, I'm gone on vacation, but I still have access to the best news, analysis, and researchers anywhere: DU.

:thumbsup: