News Corp receives letter from US prosecutors. Oh boy, oh boy, oh boy!

"Well they could not actually throw me in jail though, right?"

Courtesy of Bloomberg:

News Corp was sent a letter by U.S. prosecutors investigating foreign bribery, requesting information on alleged payments employees made to U.K. police for tips, according to a person with knowledge of the matter. 

The letter is part of an effort by the U.S. Justice Department to determine whether News Corp. violated the Foreign Corrupt Practices Act, or FCPA, according to the person, who declined to be identified because the matter isn’t public. News Corp. fell 1.7 percent on the news. 

The inquiry advances an existing U.S. probe that is reviewing claims that victims of the Sept. 11, 2001, attacks had their phones hacked by News Corp. employees. The letter doesn’t carry the same legal force as a grand jury subpoena, which would compel a response under law. 

Oh that is awesome!

And here I thought all of the good news this September was going to be about uncovering the truth about Sarah Palin.

(H/T to Alaska WTF)

James Murdoch expected to be called back before the House of Commons after evidence reveals he may have lied in earlier testimony. A Murdoch lying? Oh the humanity!

Courtesy of the Daily Mail:

Yesterday it was suggested that James Murdoch must have known as long ago as 2008 that phone hacking was widespread at the News of the World, MPs were told. 

The News International chief executive had informed the Commons Culture, Media and Sport select committee in July that as far as he knew, voicemail interception had been limited to one ‘rogue’ reporter. 

But devastating evidence yesterday from two of his most senior managers alleged that he was alerted three years ago to the existence of an e-mail indicating that journalists other than Clive Goodman, who was jailed in 2007, had been engaging in illegal hacking. 

Former News of the World editor Colin Myler and ex-legal manager Tom Crone told the committee the e-mail strongly implied that others at the paper were deeply involved. 

Mr Crone said it was ‘absolutely inconceivable’ that the full significance of the e-mail had not been explained to Mr Murdoch who is now expected to be recalled to give evidence to MPs. He said last night that he stands by his testimony. 

Less than 24 hours after the pair delivered their powerful testimony before MPs, police this morning arrest a 16th suspect in their investigation of phone hacking at the News of the World.The 35-year-old man was arrested at his north London home in a dawn raid and has not been named.

Yes I am still paying attention to this case, and I still am of the opinion that it might very well eventually have a damaging effect on Fox News, and by association the Republican party. Well at least that is my hope.

I believe that the investigation on this side of the pond is just now getting started, however the recent revelations of just how chummy Murdoch was with Tony Blair should make investigators salivate at the possibility of finding some very high placed politicians with some very difficult to explain connections to the media mogul.

Did you know that Tony Blair was the godfather of Murdoch's daughter?

Oh yes, this could get very juicy indeed!

FBI might be prepared to investigate News Corps under RICO statutes. In other words the same statutes they use to investigate the Mafia.

Courtesy of AdWeek:

Well-sourced information coming out of the Department of Justice and the FBI suggests a debate is going on that could result in the recently launched investigations of News Corp. falling under the RICO statutes. 

RICO, the Racketeer Influenced and Corrupt Organizations Act, establishes a way to prosecute the leaders of organizations—and strike at the organizations themselves—for crimes company leaders may not have directly committed, but which were otherwise countenanced by the organization. Any two of a series of crimes that can be proven to have occurred within a 10-year period by members of the organization can establish a pattern of racketeering and result in draconian remedies. In 1990, following the indictment of Michael Milken for insider trading, Drexel Burnham Lambert, the firm that employed him, collapsed in the face of a RICO investigation. 

Among the areas that the FBI is said to be looking at in its investigation of News Corp. are charges that one of its subsidiaries, News America Marketing, illegally hacked the computer system of a competitor, Floorgraphics, and then, using the information it had gleaned, tried to extort it into selling out to News Corp.; allegations that relationships the New York Post has maintained with New York City police officers may have involved exchanges of favors and possibly money for information; and accusations that Fox chief Roger Ailes sought to have an executive in the company, the book publisher Judith Regan, lie to investigators about details of her relationship with New York police commissioner Bernie Kerik in order to protect the political interests of Rudy Giuliani, then a presidential prospect. 

Here is where the RICO logic comes in. The usual path of a criminal investigation follows the crimes back to the source—that’s what happened to News Corp. in the U.K. when the royal family discovered that its voice mail messages were appearing in the press. But in a RICO investigation, you are really following the ethos and methods of operation of a group or organization to the crime. In other words, criminal activity is not seen as an isolated or particular event—as News Corp. has desperately and unsuccessfully tried to portray the crimes that occurred in the U.K.—but as an established pattern of conduct. 

As it happens, much of this pattern of conduct at News Corp. has long been hiding in plain sight. How the company has gotten away with such behavior is, in fact, a subtext of the investigations that are now unfolding. 

Partly, the company has escaped legal scrutiny because this is a boys-will-be-boys sort of story. News Corp.’s by-any-means aggressiveness has become so much a part of its identity that it seemed almost redundant to find fault with it. Everybody knew but nobody—for both reasons of fear and profit—did anything about it; hence its behavior has become, however unpleasant, accepted. 

And partly, it’s because the fundamental currency of the company has always been reward and punishment. Both the New York Post and Fox News maintain enemy lists. Almost anyone who has directly crossed these organizations, or who has made trouble for their parent company, will have felt the sting here. That sting involves regular taunting and, often, lies—Obama is a Muslim. (Or, if not outright lies, radical remakes of reality.) Threats pervade the company’s basic view of the world. “We have stuff on him,” Murdoch would mutter about various individuals who I mentioned during my interviews with him. “We have pictures.” 

Similarly, the Post and Fox News heap praise and favors on partisans, who in turn do them favors (the police, in New York as well as London, receive and return the favors). 

This reward and punishment has translated into substantial political power, both in terms of regulatory advantages and, too, in the ability of the company to shield itself from the kind of scrutiny that it has taken a perfect storm of events to have it now receive.

Use the same methods to investigate News Corp that the FBI used to investigate, and imprison, Mafia members? 

Considering what we know about how Fox News has used its influence to control elections, cover up for their favorite politicians, and attack competitors, it makes perfect sense to me.

FBI to contact actor Jude Law to gather evidence of News Corp phone hacking in the United States.

Courtesy of the BBC News:

The FBI plans to contact the actor Jude Law following claims that his mobile phone was hacked during a visit to the US, officials have told the BBC.

It is alleged that a 2003 story by the News of the World newspaper was based on information from Law's voicemail.

If the accusation were true, Rupert Murdoch's News Corporation could face charges in the US.

An article in the News of the World published on published on 7 September 2003 gave a detailed account of the actor's communications with his assistant.

Law's phone would have been using an American mobile network if used in the US, which could open the door to charges under US federal law, says the BBC's Steve Kingstone in New York.

Every time I see a story about the investigation moving to US soil it just makes me that much more convinced that the noose is tightening around the flabby neck of Fox News.  And it never fails to put a HUGE smile on my face at the thought.

And by the way the irony that the most damaging evidence against News Corp might come from the British actors that they harassed the most, like Hugh Grant and Jude Law, is not lost on me either.

Rupert's son, James Murdoch, may have been caught lying to the British Parliament. Anybody surprised?

Courtesy of The Guardian:

Tom Crone and Colin Myler must have been well aware that the statement they were about to make could prove fatal to James Murdoch.

When the Guardian pointed out in the wake of his parliamentary testimony that Murdoch's son had sought to blame them for concealment, a friend of the two men said: "To contradict James will be as good as coming out and calling him a liar."

Myler and Crone, the News of the World's then editor and News International's top newspaper lawyer, both of whom have lost their jobs in the wake of the phone-hacking affair, subsequently spent the day debating what to do.

If their statement of Thursday night is correct, then Rupert's son will have proved to have misled parliament. It will also have destroyed the Murdoch family's last line of defence against the scandal: that they knew nothing, and had been betrayed by those underlings they trusted.

I knew the little prick was lying right off the bat.

Gee I wonder who Rupert will have left to hide behind after Junior gets tired of taking the heat and turns on him?

Well I guess he always has that Ninja trained attack wife of his.

Rachel Maddow reveals that phone and computer hacking just business as usual for companies owned by Rupert Murdoch.

Visit msnbc.com for breaking news, world news, and news about the economy

What goes around, comes around, as News Corp's "The Sun" gets hacked.

 Courtesy of Neowin:

There's been a lot of media coverage around the News of the World hacking scandal this week, it appears that Lulzsec has stepped up against the parent company, Media Corp's other publications and has hacked Rupert Murdoch's major newspapers website, The Sun.

The website today redirected to an article on a elaborate copy of the official Sun website, that claimed Rupert Murdoch had died, and had been found in his garden. 

The Lulzsec official Twitter account claimed they were behind the hack, tweeting; "We have owned Sun/News of the World - that story is simply phase 1 - expect the lulz to flow in coming days." and with a later tweet saying "The Sun's homepage now redirects to the Murdoch death story on the recently-owned New Times website. Can you spell success, gentlemen?"

Oh sweet irony.  I am not much of a fan of those that hack websites, but considering the garbage that Murdoch and his minions are involved with, I think this time I will side with the hackers.

Phone hacking whistleblower found dead. Uh oh, I don't like where this is going!

Courtesy of the Guardian:

Sean Hoare, the former News of the World showbiz reporter who was the first named journalist to allege Andy Coulson was aware of phone hacking by his staff, has been found dead, the Guardian has learned.

Hoare, who worked on the Sun and the News of the World with Coulson before being dismissed for drink and drugs problems, is said to have been found dead at his Watford home.

Hertfordshire police would not confirm his identity, but the force said in a statement: "At 10.40am today [Monday 18 July] police were called to Langley Road, Watford, following the concerns for the welfare of a man who lives at an address on the street. Upon police and ambulance arrival at a property, the body of a man was found. The man was pronounced dead at the scene shortly after.

"The death is currently being treated as unexplained, but not thought to be suspicious. Police investigations into this incident are ongoing."

Okay I am going to try not to be too conspiratorial here but...oh fuck it, this simply CANNOT be a coincidence!


They need to get somebody besides the local police involved in this investigation immediately, and make damn sure that any other journalitst involved in this investigation, and their sources, are provided protection.

I realize that it is possible that this guy took his own life, or succumbed to "natural causes," but at this point I think those are the LEAST likely scenarios.

Rupert Murdoch protege, Rebekah Brooks, arrested over phone hacking scandal! Update!

Courtesy of The Daily Mail:

Former News International executive Rebekah Brooks was today sensationally arrested over the News of the World phone hacking scandal.

The 43-year-old was held when she arrived for a pre-arranged appointment at a central London police station - two days before she is due to give evidence to MPs. 

The ex-News of the World editor, who is tenth person to be arrested in connection with allegations of corruption and phone hacking, resigned from her job on Friday.

Mrs Brooks is believed to be being held at Lewisham police station. She attended voluntarily and said she is 'assisting police with investigations'.

She is in custody as part of the ongoing investigations by officers from Operation Weeting looking at phone hacking and Operation Elveden, investigating inappropriate payments to police.

She was arrested on suspicion of conspiring to intercept communications.

Mrs Brooks' arrest comes after it was revealed that Britain's top police officer accepted a free five-week stay at a top health spa where News of the World hacking suspect Neil Wallis was a PR consultant.

She is "assisting police with investigations." If you don't think those words send a chill up the spine of Rupert Murdoch and Roger Ailes than you have not been paying attention.


I have a feeling that this thing is still only at its beginning stages, and that when the dust finally settles there are going to be some very serious changes in how journalism is conducted in Britain, and hopefully America as well.

Update: It looks like another domino just fell.

The commissioner of London’s Metropolitan Police Services, Sir Paul Stephenson, resigned his post on Sunday just hours after his officers arrested Rebekah Brooks, the former chief of Rupert Murdoch’s media operations in Britain, as damage from a phone-hacking scandal moved to the highest levels of British public life.

In a news conference, Sir Paul said his position was “in danger of being eclipsed by the ongoing debate by senior officers and the media. And this can never be right,” according to a report by The Guardian.

The Metropolitan Police, commonly referred to as Scotland Yard, has come under harsh scrutiny in recent days, accused in the press and by British politicians of currying too close a relationship with tabloid executives.

Like I said this thing is just in the beginning stages. So far almost every day has seen the new allegations and new resignations, from my perspective it feels like the momentum is picking up NOT getting ready to crest nor diminish.


Anybody of a differing opinion?

Clearly Rupert Murdoch is in a panic and desperately trying to control the damage before it spreads too far to contain. But will it be enough?

From Yahoo News:

Rupert Murdoch apologized to victims of criminal phone hacking by one of his tabloids and accepted the resignations of News Corp's top two newspaper executives, Rebekah Brooks and Les Hinton.

Moving to gain control of a scandal washing over his global business, the U.S.-based magnate made a personal apology to the parents of a murdered schoolgirl in what appeared to be an admission that the News of the World, then edited by Brooks and overseen by Hinton, had in 2002 hacked into the voicemails of their missing daughter.

It was that damning allegation, in a rival newspaper 10 days ago, which reignited a 5-year-old scandal that has forced Murdoch to close the News of the World, Britain's best-selling Sunday paper, and drop a $12 billion plan to buy full control of highly profitable pay-TV operator BSkyB.

The crisis has broken the grip that Murdoch, 80, had over British politics for three decades as leaders from Margaret Thatcher, through Labor's Tony Blair to current Conservative Prime Minister David Cameron sought his support.

It has also forced him to make concessions to public calls that the executives who were in charge at the time of the scandal be held accountable.

Somebody left a comment on another thread that I should not get my hopes up about this scandal damaging Fox News, or destroying their credibility along with the other News Corp entities.

Yeah maybe not, but this has been a pretty satisfying summer so far, so I think I will follow my President's advice and embrace the audacity of hope.

How about you guys?

FBI begins probe to investigate allegations that News Corp hacked phones of 9-11 victims. Well now, things just got a LOT more interesting!

Courtesy of the LA Times:

Responding to allegations from several Washington lawmakers, the FBI has opened an investigation into whether Rupert Murdoch's News Corp. attempted to hack into the telephones of victims of the Sept. 11, 2001, attacks and the families of those who died.

According to federal law enforcement sources, the decision by the FBI's field office in New York to launch the criminal probe came after several members of Congress raised concerns in letters to FBI headquarters, questioning whether reporters for the media empire may have tried to compromise Sept. 11 victims just as they reportedly hacked into the phones of numerous individuals in England.

"We are doing this based on their requests," said an FBI source, who asked not to be identified because the investigation is just getting underway. "But after reviewing the letters and their allegations, and after consultation with the U.S. Attorney's Office in New York, we are proceeding."

At the Department of Justice, officials also acknowledged they are "reviewing" the allegations by Rep. Peter T. King (R-N.Y.), chairman of the House Homeland Security Committee, and others that Sept. 11 victims and families may have been put at risk by News Corp.

"If these allegations are proven true," King wrote in his letter to FBI Director Robert S. Mueller III, "the conduct would merit felony charges for attempting to violate various federal statutes related to corruption of public officials and prohibitions against wiretapping. Any person found guilty of this purported conduct should receive the harshest sanctions available under law."

I have to imagine that there are those working at Fox News right now who are trying desperately to clear their email trash bins and clean up their hard drives before the investigation leads the FBI right to their door. Because folks, you just KNOW that this was not something that just took place on the other side of the Atlantic.

I also have to imagine that there are some disgruntled ex-News Corp, and Fox News employees that are more than willing to help the FBI with their case.

Remember when I promised you that this would be a great summer?

Well to be honest there was really NO WAY I could have imagined that it would be THIS great!

The News Corp scandal might just turn out to be Keith Olbermann's all time favorite story.

Here is a partial transcript by Raw Story:

Current TV’s Keith Olbermann summarized the latest developments in the scandal before turning to Murdoch biographer Michael Wolff for commentary. Wolff began by saying that the elder Murdoch should really be out apologizing to everyone who has been harmed by his company’s actions, but “that’s not Rupert Murdoch.”

“This is a company that’s all about — it’s about power,” Wolff explained. “You hurt me, you diss me, we smack you down.” He added, “These people will do anything.”

“Is James Murdoch really at legal risk?” Olbermann asked.

“I think it’s an exaggeration, somewhat,” Wolff replied, but he quickly noted, “Anything could happen now. … The unimaginable is now occurring.”

“This is the snowball effect,” Wolff said, explaining that when it comes to Rupert Murdoch, “these politicians … in the UK have had to put up with this guy for a long time. He’s never been pleasant about it. He’s always extracted blood. So finally there’s an opportunity. ‘We can get rid of this guy.’”
Wolff concluded by saying that we can expect “new revelations every day” as “more shoes drop.”

You can almost see Olbermann salivating over the potential demise of Rupert Murdoch's empire.  I find it very hard to blame him.

(H/T to Politicususa.)

The hero who first reported on the News Corp phone hacking scandal was actor Hugh Grant?

You have to watch this exchange between Grant and ex-NOW reporter Paul McMullen to believe it. Grant essentially destroys this guy's credibility with ease.

Well now I am a little less embarrassed about owning "Love Actually" and having memorized several scenes from "Notting Hill." (Okay, that second one I still find embarrassing.)