Motley Moose – Archive

Whew! This has been an exhausting weekend of revelations and arrests as the Hackgate scandal at News of the World has spread, via an email hacking scandal at The Times, to the arrest of ten journalists, many of them senior, at Britain’s most popular paper, The Sun.

Without doubt, from the multiple angry responses from NI journalists, the British arm of Newscorp is now at war with its corporate masters in the News Corp headquarters in New York. The latter are in charge of the 100 plus lawyers at the Management and Services Committee which is directly co-operating with 161 officers in the Met Operations Weeting, Tuleta and Elveden engaged in investigating phone, email hacking and bribery of state officials. It’s the latter which are behind the recent spate of arrests, and directly threatens the News Corp base with the threat of prosecution under FCPA violations.

I haven’t got long because all these developments have to be incorporated in my book with Eric Lewis, Bad Press: Fall of the House of Murdoch. But in short the DOJ, the FBI and the SEC have all been investigating News Corp since the summer. Mark Lewis, the sterling lawyer for the hacking victims is heading to New York this week to launch civil claims on this basis. In the meantime it’s the FCPA violations which could land senior News Corp Executives in the dock.

There are so many sources on this, from Reuters, the NYT, even the WSJ, I’m just going to link to the most recent: Ed Pilkington on the US Guardian site:

News Corp executives at risk of US prosecution for ‘willful blindness’

The perils to News Corp of an FCPA prosecution in the US against the company and its executives was underlined by the revelation that a grand jury has been convened in the case of Avon Products. The Wall Street Journal reported that US authorities are probing an internal audit report compiled in 2005 that found that Avon employees had bribed officials in China, yet the company only launched an official inquiry into possible violations three years later.

In the Avon case, the grand jury is likely to be asked to consider whether executives were culpable under the “willful blindness” provision of the FCPA.

Professor John Coffee, a specialist in white-collar crime at Columbia law school in New York, said that executives were at risk of prosecution in cases where they failed to ask relevant questions about a suspicious persistent pattern of payments. He gave the metaphorical example of a driver used by a Mexican drugs cartel to transport cocaine across the border who was aware that the vehicle contained a secret storage panel but made no attempt to find out what packages had been placed inside.

As part of its response to the billowing phone hacking scandal, News Corp has amassed the most formidable team of FCPA lawyers ever assembled. “They have appointed not just one of the best lawyers in this field, they have appointed most of the best lawyers,” Coffee said.

“That’s not normal defensive strategy,” he added.

And in other ‘news’ (I use the term lightly in the Fox news sense), there are rumours that the government scientist David Kelly, who committed suicide after the Iraq invasion over allegations of sexing up WMD threat, could have been a hacking victim. Michael Wolff, Murdoch’s official biographer speculates that James could be arrested this week. And dozens of tabloid journalists, more than happy to see others arrested in dawn raids or suffer trial by media, are whining loudly, in a liberal way, about human rights, due process, and innocent before being proven guilty.

Sweet is it in this dawn to be alive.  

Hackgate: A Pattern of Criminal  Behaviour

Yes, the Murdoch story may be flying under the mainstream media radar, but with three British police investigations ongoing, two Parliamentary committees, a televised public enquiry with full powers of subpoena starting tomorrow, a DOJ enquiry stateside, and other investigations and legal cases in the US, Australia and Italy into Newscorp anti-competitive and/or criminal behaviour, this is not about to go away any time soon.

As an early indication of this, it has just been announced that over sixty separate claims (some filed in multiple names) have been filed in the UK civil claims court against News International: these include dozens of celebrities and prominent politicians, but also the families or partners of murder victims, or casualties of other high profile incidents such as the 7/7 London bombings.

These weren’t people who thrust themselves into the limelight – but people who had already been violated by some awful event, only to have their own privacy violated by illegal means by a company whose only interest was profit and using press exposure to exert political power.

Bernstein on the Watergate Analogy and the Culture of Lawlessness

If you think the Watergate analogy is hyperbolical or fanciful, don’t forget it was first made by Carl Bernstein himself in The Daily Beast nearly three months ago

The circumstances of the alleged lawbreaking within News Corp. suggest more than a passing resemblance to Richard Nixon presiding over a criminal conspiracy in which he insulated himself from specific knowledge of numerous individual criminal acts while being himself responsible for and authorizing general policies that routinely resulted in lawbreaking and unconstitutional conduct. Not to mention his role in the cover-up. It will remain for British authorities and, presumably, disgusted and/or legally squeezed News Corp. executives and editors to reveal exactly where the rot came from at News of the World, and whether Rupert Murdoch enabled, approved, or opposed the obvious corruption that infected his underlings.

And here he is, in a Guardian interview today where he makes the same point

The parallels with Watergate… Had to do with the culture itself that made this possible. In the Nixon Whitehouse Nixon was responsible for the sensibility that permeated the place, that had to do with unconstitutional acts with a cynicism about the political process and how it was practised, and a disregard for the law. And it became apparent to me, as I read more and more what was happening here, that really at bottom what this hacking furore is about, it’s about a culture in the newsroom that has nothing to do with real journalism, real reporting (which is very simply put the best obtainable version of the truth) but rather has to do with serving up both the lowest common denominator of information and calling it news, and obtaining it through a methodology which is outrageous, whether you’re talking about hacking or other kinds of invasions of privacy, and that the atmosphere in that newsroom is a product of the culture that Murdoch in the News of the World .

This needs must be quick because the unofficial news has just hit the street, but for those of you who think Holder and the Department of Justice aren’t taking the what Gordon Brown has called the ‘criminal media nexus’ seriously, Bloomberg just has this

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.

Final Update: Lulzsec Hack of the Sun

It’s only fitting, since the Guardian were one of the few major papers involved in disseminating the Wikileaks emails and breaking the Phone Hacking scandal, that they should be the first to report a Lulzsec hack of News International:

The LulzSec collective hacked the Sun’s website and redirected it to another hacked page falsely reporting that Rupert Murdoch had been found dead.

LulzSec also claimed to be “sitting on their [the Sun’s] emails” and that they would release the emails on Tuesday. They tweeted what they claimed was Rebekah Brooks’s email address at the Sun, and said they knew her password combination.

Just in (0.30 BST): A retweet from the Editor of the Guardian says all News International sites down now

RT @jamesrbuk: Okay, www.thetimes.co.uk, thetimes.co.uk, www.thesun.co.uk and thesun.co.uk all down for me now #lulzsec

Ouch. That’s gotta hurt. It’s coming at them from all angles now.

Update: Sean Hoare’s Death

I go out to gym for a couple of hours, and what happens? More incredible twists and turns

The whistleblower who connected the Prime Minister’s Press officer to the Hacking Scandal in an NYT investigation has been found dead in his home in Watford (just up the road). Police are saying the death of the former NOTW journalist is ‘not suspicious’, though obviously suspicions will be high. As a friend of mine tweets

Sean Hoare’s death like Pincipal Skinner’s line from the Simpsons “There’s nothing sinister here, groundsman Willie has simply disappeared.”

As the editor of the Guardian has just tweeted, Hoare had already been interviewed under caution as a suspect in the case. Must have been tough on him, since he was also a major contributor to this article on the growing scandal only last week.

A former show-business reporter for The News of the World, Sean Hoare, who was fired in 2005, said that when he worked there, pinging cost the paper nearly $500 on each occasion. He first found out how the practice worked, he said, when he was scrambling to find someone and was told that one of the news desk editors, Greg Miskiw, could help. Mr. Miskiw asked for the person’s cellphone number, and returned later with information showing the person’s precise location in Scotland, Mr. Hoare said. Mr. Miskiw, who faces questioning by police on a separate matter, did not return calls for comment.

My guess is that he was driven to suicide by events, but of course all kinds of speculations are going to take root given the billions of dollars involved, political and business careers: what a horrible mess for him and his family.

Sean Hoare was a key figure in this scandal actually reaching the public and causing the outcry we see now: a brave man. May he Rest in Peace.