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al-Canine
04-08-2006, 09:53 AM
Dirty Disher?

Scribe Allegedly Tried to Shake Down Billionaire

By Howard Kurtz | Washington Post Staff Writer

The billionaire wanted to find a way to stop becoming tabloid fodder. A meeting was called. A deal was proffered. And a hidden FBI camera was rolling.

In a city that thrives on gossip of the rawest and juiciest variety, there was one more delicious twist: The target of the undercover sting was a writer for the New York Post's Page Six, the dishiest repository of tawdry tales about boldfaced names.

The federal probe unearthed evidence alleging that gossip peddler Jared Paul Stern solicited $220,000 from a man the Post had dubbed a "party-boy billionaire" in exchange for immunity from negative items, the paper confirmed yesterday. And in a "Sopranos"-like twist, Stern likened the protection he was offering to a "Mafia" racket.

That the seamy story about Rupert Murdoch's New York Post was cracked open by Mort Zuckerman's Daily News, which competes with the Post for straphanger readers as well as celebrity news, merely added to the mounting Manhattan buzz. If the allegations are true, Post Editor in Chief Col Allan said in a statement, "Mr. Stern's conduct would be morally and journalistically reprehensible, a gross abuse of privilege, and in violation of the New York Post's standards and ethics."

The rival paper was shocked -- and loving every second of it.

"In 35 years, I can't recall anything quite like this," Martin Dunn, the Daily News's editor in chief, said yesterday. "I know journalists over the years might get a bottle of scotch from someone, but I've never known it the other way around, where someone says, 'I can control accurate and inaccurate stories in return for a huge amount of money.' It's the most extraordinary thing."

Stern, who did not respond to messages left on his office phone yesterday, told the Daily News the shakedown allegations are "completely outrageous."

Howard Rubenstein, a spokesman for the New York Post, said an assistant U.S. attorney briefed a lawyer for Rupert Murdoch's News Corp., the paper's parent company, on the allegations Thursday. He said the prosecutor explained that Stern had been "asking for $100,000 up front to not print bad articles and to print good items," and for $10,000 a month after the initial down payment.

Rubenstein said Post staff members were "appalled" and that the paper has agreed to a request from prosecutors to preserve Stern's records and computer hard drive.

Perhaps no city is as addicted to the guilty pleasures of gossip as New York, home of Liz Smith and Cindy Adams, of People and Us Weekly and Vanity Fair. It is a place where each tabloid fields several columnists who work the downtown clubs and the midtown media offices and the power tables at Michael's restaurant, along with scribes from various magazines and Web sites such as Gawker.com, all searching for titillating tidbits about the rich, famous and merely bizarre.

At the center of the probe is Stern, 36, a dapper partygoer known for his fedora and Ralph Lauren suits who markets his own line of clothing online, such as a $95 Kelly green polo shirt with a hot-pink skull-and-crossbones logo.

Andrew Parker, who sells Stern's T-shirts and ties at his Madison Avenue clothing store, called Stern "very affable, always very dapper and elegant. . . . Everyone's shocked. He's probably one of the last guys you'd expect" to get into trouble.

Stern was executive editor of Star magazine for about 18 months at a salary he has said was $300,000, and burned his bridges after he left by granting an interview in which he described the woman who hired him, American Media editorial director Bonnie Fuller, in harshly personal terms.

Stern's target in the alleged scheme was Beverly Hills supermarket magnate Ron Burkle, who once raised $4.5 million for Bill Clinton with a bash at his mansion, emceed by Tom Hanks, at which White House spokesman Mike McCurry jumped into the pool with his clothes on. Burkle's investment firm, the Yucaipa Cos., is attempting to buy 12 newspapers -- including the Philadelphia Inquirer and San Jose Mercury News -- that the McClatchy chain obtained from Knight Ridder but does not want to keep.

Michael Sitrick, a spokesman for Burkle, said yesterday that Burkle's lawyer contacted authorities after Stern sent one of the billionaire's staffers an e-mail that Burkle found troubling.

In the e-mail to staffer Kevin Marchetti -- confirmed by Sitrick -- Stern wrote: "I understand Ron is upset about the press he is getting. If he's really concerned he needs a strategy for dealing with it and regulating it. It's not easy to accomplish, but he certainly has the means to do so."

Burkle had been complaining to Page Six about what he said was a series of inaccurate items about him and the failure to contact him for comment. Last year, for instance, the page reported that Burkle was "said to have been harassing his leggy ex- lover via e-mail ever since she ended their 2 1/2 -year relationship."

Page Six also reported that Burkle was dating supermodel Gisele Bundchen and said that "Tobey Maguire, girlfriend Jen Meyer and babe-alicious blond actress Sarah Foster" were "arriving in Aspen on billionaire Ron Burkle 's private jet for a New Year 's weekend vacation at Burkle's mansion."

Sitrick said Burkle and Bundchen are friends who have never dated, and that the businessman doesn't own an Aspen mansion and did not fly Maguire and the others to the Colorado resort.

Burkle's lawyers wrote to News Corp. about the inaccuracies, Sitrick said. After that, "he got so frustrated that he wrote to Rupert Murdoch, but nothing seemed to be changing."

Burkle, in a statement, said he had not been objecting to unflattering items, just false ones. He said he was shocked, angered and saddened by his conversations with Stern but that investigators have asked him not to discuss the meetings.

In meetings captured by investigators on both videotape and audiotape, Stern told Burkle that he could buy protection from negative gossip for himself and his friends, saying: "It's a little like the Mafia. A friend of mine is a friend of yours."

Burkle, who knew the sessions were being recorded, listened as Stern described the "various levels of protection." The first level, Stern said, would involve Burkle providing gossip about his celebrity friends as a way of putting himself off-limits.

At one point, Burkle asked whether he should hire the fiancee of Page Six Editor Richard Johnson. Stern suggested instead that Burkle invest in his clothing line, Skull and Bones.

Burkle asked whether he could achieve "level 2" protection if he hired two other Page Six staffers, according to the tape. Stern said yes.

Finally, Burkle asked: "How much do I need to pay you to make this stop?" That was when Stern asked for the $100,000 payment and monthly installments of $10,000.

At a second meeting, Burkle asked if he would be pressed to pay even more money.

"It is not a stickup," Stern said. "I am not going to keep coming back to you for something unless there's, you know, more to it." Stern later e-mailed a Burkle staffer with instructions on wiring the initial $100,000 to his bank account.

Stern is widely known in Manhattan gossip circles. His party-hopping was chronicled in a 1997 New York Times Magazine piece. In a 2000 article in the Ottawa Citizen -- which describes Stern as a dual U.S.-Canadian citizen -- Times columnist Alex Kuczynski was quoted as saying: "To the 24-year-old crowd he's God, but I don't think anyone over 30 takes him seriously unless they're in a state of arrested development and only date models."

Stern told the Web site Black Table last year: "It's hard to feel sorry for celebs with oceans of money who employ armies of sociopathic [expletives] to call you up and bitch about every little item. You sign away your privacy when you become a star or boldface bigshot and agree to play this game. You took our money, so we own you. If you don't like it buy an island and stay on it."
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/07/AR2006040702130.html

al-Canine
04-10-2006, 06:22 PM
Sources: FBI Lacked Evidence Against Page Six Scribe

Billionaire Fights Case Through Media

By CHRIS CUOMO, RICHARD ESPOSITO and CHRIS FRANCESCANI

April 10, 2006 — - Had there been clear-cut evidence that New York Post gossip writer Jared Paul Stern had tried to extort money or demand a bribe in exchange for ceasing negative portrayals of a supermarket billionaire, the FBI was prepared to arrest Stern as soon as the words tumbled out of his mouth in a secretly recorded meeting at the billionaire's Manhattan loft, a senior law enforcement official told ABC News.

But there was not. And the billionaire, Ron Burkle, has now taken his case to the media, specifically to a rival tabloid -- the New York Daily News -- fueling a bruising, old-fashioned war for readership and advertising.

While the entire affair may at first seem like a sordid tempest in a tabloid, it throws a harsh light on the practices of celebrity and entertainment journalism -- where gift-taking and special treatment for reporters, as well as gift-giving and special treatment for guests and subjects of flattering cover stories -- are routine but usually hidden from readers and viewers.

According to law enforcement officials, an FBI agent and a federal prosecutor listened in, made suggestions and gave advice during the second of two videotaped interviews between the aggrieved billionaire and the sketchy scribe.

But there was not enough evidence to bring the reporter in on charges, and now the case is in the preliminary stages of an FBI investigation to determine whether there ever will be enough to bring to a federal grand jury and win an indictment.

Burkle spokesman Michael Sitrick had no immediate comment when reached by ABC News.

Stern: I Was 'Set Up'

Stern has come out swinging against Burkle, telling ABC News, "I was the one who was targeted'' and claiming he was "set up'' by 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."

Stern's attorney Joseph Tacopina goes even further, charging on Monday that "he was entrapped by a paranoid billionaire with an ax to grind and secrets he was desperate to protect.''

"As to what occurred in the meetings between Messrs. Burkle and Stern," the statement added, "the tapes are very clear as to what Mr. Stern said and what he didn't say. They are also clear with respect to what Mr. Stern meant.''

Stern has retained Joseph Tacopina, the high-profile defense attorney who represents former New York City Police Commissioner Bernard Kerik and Joran van der Sloot, the Dutch teen believed to be the last person to see Alabama teen Natalee Holloway alive on the island of Aruba last spring.

'True Nature of the Relationship'

In an interview with ABC News' senior legal correspondent Chris Cuomo over the weekend, Stern previewed his defense. He promised a "strong statement setting forth the true nature of the relationship and my feelings about being the one who was targeted."

Stern repeated to ABC News his claim that his "main interest'' in Burkle was as an investor in Stern's clothing line, Skull & Bones. Burkle's spokesman flatly denied that Burkle was interested in the clothing line.

In an effort to support Stern's case, a source close to Stern provided an e-mail dated July 25, 2005, to ABC News, in which a Burkle employee offered to buy 60 shirts worth $5,700 from Stern's line. It is unclear who the shirts were for.

Stern said Burkle initially contacted him in the summer of 2005, through a mutual friend, to initiate discussions on how to "fix Page Six problems."

Conversations between Burkle and Stern were recorded by security cameras in Burkle's rented New York loft at least twice, and those tapes have been turned over to the FBI, which is investigating, sources told ABC News. An FBI spokesperson declined to comment, but sources said the government is reviewing the tapes to determine whether a case against Stern could be made.

According to Sitrick's statement, "After both the FBI and the U.S. attorney's office viewed tapes of the meetings and all of the e-mails (including wire-transfer instructions) in their entirety, the U.S. attorney's office contacted the New York Post and requested a meeting to ask for the Post's cooperation in its probe and help in preserving evidence. We believe these actions speak for themselves."

Sources close to the investigation say that an FBI agent and an assistant U.S. attorney were present in the room during the entire March 31 encounter. Despite that, law enforcement sources point out that the way the tapes were made could pose problems with any future prosecution.

[b]'I Can Solve These Issues'

In the latest excerpts from the tapes made by Burkle and first reported by New York Daily News staffer William Sherman, Stern and Burkle apparently refer to longtime Page Six editor Richard Johnson and other reporters working for the column, according to the Daily News report.

"I can solve these issues for you,'' Stern said during their March 31 meeting, according to Sherman's report.

"Yeah, a consultant said to, you know, your media companies, for instance," Stern said.

"Well, like Current TV, I have Current TV," Burkle countered.

"Yeah, OK,'' Stern said. "Yeah, that is something we should definitely do and we should start to work on something sooner rather than later."

At another point in the Daily News transcript, Burkle asked, "So I get to choose today whether I want to be a friend or do I want to be an enemy?"

"You gave me ideas yesterday,'' Burkle replied, according to a Daily News transcript. "You tell me I have to pay Richard Johnson $100,000 to be something somewhere ...

Stern replies, "Right, um.''

"And if I choose to be a friend I need to pay you, and if I choose to be an enemy, you just write things?" Burkle said.

"Yeah, I mean, we can still be friends, but we're not going to be as good friends," Stern said.

Later, according to the Daily News transcript, Stern allegedly told Burkle that he has influence over Johnson.

"Richard [Johnson] is not going to do anything to go after you from that point," Stern said. "He is not going to do it. I have worked with him for 11 years and, um, if I ask him not to do it, he won't do it.''

Page Six Fixture

New York Post officials have said that the paper's relationship with Stern is limited, but it goes back a long time. Stern has worked with Johnson on the column for more than a decade, and former Page Six staffers told ABC News he has been a regular fixture on Page Six for many years, often editing the page in Johnson's absence.

Gary Ginsberg, an executive vice president at News Corporation, which owns the Post, reportedly called Stern a part-time employee.

"No one's trying to make any excuses for his alleged behavior, but in terms of what it means for the franchise, I think the franchise is as strong as any in journalism," Ginsberg told The New York Times. "This is highly aberrational."

ABC News' Chris Francescani is a former New York Post reporter.

Copyright © 2006 ABC News Internet Ventures

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

al-Canine
04-11-2006, 12:18 PM
Schadenfreude of the Times

It's easy to see why the Daily News is throwing everything it's got into the story of the scandal at Page Six of the New York Post. But what are New Yorkers to make of the New York Times? The Gray Lady fronted the topic for two days running and twice devoted a full broadsheet page of coverage inside the paper to the drama between billionaire Ronald Burkle and reporter Jared Paul Stern. By our count, at least 13 individual reporters have been named as contributing to the Times's coverage. By yesterday the Times had run more than 10,000 words about Page Six. Over the same period, so far as we can tell, the Times ran just two sentences about the genocide in Darfur, a passing reference in the Times's own gossip column. The Times ran but 4,000 words on the Israel election in a four-day period during which the vote took place. The German election last fall rated similar coverage, about 4,000 words over four days. While the Times had 13 reporters chasing a two-day-a-week freelancer for the Post it missed the news reported in yesterday's New York Sun by our Josh Gerstein that a California judge had dismissed Senator Clinton from a lawsuit that had been brought against President Clinton relating to campaign fundraising improprieties. The Times has yet to acknowledge the scandal over the anti-Israel paper coauthored by the academic dean of Harvard's Kennedy School of Government.

So how to explain the Times's obsession with the Post? Are the machinations of the New York Post's gossip column twice as important as the Israeli or German election? Is it schadenfreude, or payback for the Post's coverage of the Times's own recent troubles? Or does it reflect recognition that the Post, which has been sprouting such high-end retail advertising as Coach and Macy's, has been gaining on the Times in the only Class A newspaper war in the country. This newspaper war is not only a tabloid war between the Daily News and the New York Post, but a war among at least four dailies for Manhattan, where the Post has a circulation that exceeds that of the Times and where there is a competition under way for readers and advertisers and for standing in the policy and political debates that animate the city. More and more of those readers and advertisers are heading for newspapers that want to lower their taxes, not increase them, as the Times does, and to newspapers that want to win the war against the terrorists, rather than describe the threats themselves as products of President Bush's imagination, as the Times does. We're enjoying being in this newspaper war ourselves, even if in a modest way. The fact that the Gray Lady has become obsessed with the Post is a sign that things are changing faster in this town than was predicted not so long ago.

http://www.nysun.com/article/30802

NYer
04-11-2006, 05:37 PM
Schadenfreude of the Times



AC ... this might help put things in perspective.

http://chart.finance.yahoo.com/c/2y/n/nyt

http://chart.finance.yahoo.com/c/2y/n/nws