SEC and Department of Justice May Probe Phone-Hacking Scandal

The phone-hacking scandal in Great Britain that has consumed the News Corp. empire built by media mogul Rupert Murdoch is reaching across the pond to the United States.  ProtectOurElections.org, a watchdog group is calling the United States Securities and Exchange Commission, Department of Justice, Federal Bureau of Investigations and every other department that will listen to investigate for civil and criminal violations.  Using the Foreign Corrupt Practices Act as precedent, they claim News Corp. bribed foreign officials, which the law strictly forbids. 

According to some people’s estimation, Murdoch’s U.S. operation, Fox TV, garners more than half of all News Corp. profits. 

Recently on Bloomberg Law with Lee Pacchia, attorney Robert Anello discussed the legal implications stemming from the phone-hacking scandal involving a British tabloid owned by Rupert Murdoch's News Corporation.

In 1969, Rupert Murdoch bought News of the World, a London based newspaper.  Murdoch is from Australia.  Things really started to pick up when Murdoch changed the format to more of a tabloid publication in 1984.  The recent allegations of News of the World actually date back to 2002 during another incident.  Rebekah Wade, CEO of News Corp. subsidiary, was involved in the first incident and working in the organization since 1989. 

It’s the opinion of this writer that Murdoch, nor News Corp., will go down for this incident.  That’s just a pipe dream of reclusive Ted Turner and the liberal garbage a washed up Hillary Clinton-hack like Wolf Blitzer would say.  The Foreign Corrupt Practices Act was enacted by then President Jimmy Carter.  The original intent was to curb the powerful influence of military contractors like Lockheed.  Most of the cases of application involve millions of dollars being “greased.”

Corporate Profile

News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) had total assets as of June 30, 2011 of approximately US$62 billion and total annual revenues of approximately US$33 billion. News Corporation is a diversified global media company with operations in six industry segments: cable network programming; filmed entertainment; television; direct broadcast satellite television; publishing; and other. The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and Latin America. NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) had total assets as of June 30, 2011 of approximately US$62 billion and total annual revenues of approximately US$33 billion. News Corporation is a diversified global media company with operations in six industry segments: cable network programming; fil

An Indictment for Bagel Shop

In Manhattan the district attorney indicted the proprietor of H&H Bagels on tax fraud charges.  R. M. Morgenthau runs the District Attorney office and claims the owner Mr. Toro, didn’t pay a large sum of payroll tax and also withheld payments for unemployment insurance tax. 

The owner, Helmer Toro, 59, failed to pay nearly $370,000 in payroll withholdings to state and federal tax authorities, Mr. Morgenthau said. Mr. Toro also shortchanged the authorities on paying unemployment insurance tax, according to Mr. Morgenthau’s office alleges that Toro set up a dummy corporation for six years in a row to cover his tracks. 

Normally the length of a company’s existence is directly tied the UE rate, so this helped him have lighter bills for unemployment insurance tax. The charges include labor law violations, falsifying records and grand larceny.  The maximum penalty can be upwards of a $1 million in fines and 15 years in jail.

H&H has and will maintain operating as Toro pleaded guilty and he and his lawyer, Robert Anello, declined to comment.

About the District Attorney

Robert M. Morgenthau ran for Governor of New York in 1962 and lost to Nelson Rockefeller.  He has a good track record of pursuing securities fraud cases.  He has been the District Attorney of New York since 1977, running unopposed 7 times.

Notable assistants under Morgenthau include John F. Kennedy Jr., Andrew Cuomo, Supreme Court Justice Sonia Sotomayer and disgraced ex-Governor of New York Eliot Spitzer, a former talk show host on CNN for the show, In the Arena, which was cancelled after be continually 4^th in that time slot versus the other cable news outfits.  Fox News in the same time slot had over 7x’s the viewership.

About H&H Bagel

H&H Bagel was founded in 1972 by Helmer Toro and has grown to be the largest bagel manufacturing in the entire world.  From it’s original location at Broadway and 80^th Street, H& Bagels has expanded to a plant in Hell’s Kitchen, where Bagels are produced for shipping throughout the country and around the world.  H&H Bagels produces millions of bagels each year.

H&H Bagels has served numerous famous people including: former President Bill Clinton, Dustin Hoffman, Cher, Anne Meara, Jerry Stiller, Tom Hanks, Barbara Streisand, Mike Myers, Anne Landers, James Woods, John Madden, Rick Moranis, Michael J. Fox, Roy Schneider and Tony Randall.  It has also appeared on Seinfeld, SNL, LA Law, The Office and Entourage.

Recluse Left Bulk of Wealth for Art Charity and to Her Nurse

By JOHN ELIGON

Published: June 22, 2011

For the past several decades, Huguette Clark, a wealthy copper heiress, had largely been a mystery to the public. She cloistered herself in hospitals in New York, and saw only a small number of visitors. She had no children and no close relatives.

Huguette Clark in 1930. Though healthy until near her death last month, she lived for decades in a hospital, even while healthy.

Her fortune was clearly huge — including a 42-room apartment on Fifth Avenue; an oceanfront estate in Santa Barbara, Calif.; and a country manor in New Canaan, Conn. — but her net worth was not clear.

So when Mrs. Clark died last month at age 104, it naturally raised questions: How much was there to be inherited, and who would get it?

Some clarity was provided on Wednesday when a lawyer filed a will in Surrogate’s Court in Manhattan that Mrs. Clark had executed in 2005.

Mrs. Clark’s estate is worth about $400 million, and is made up of an art collection with works by Monet, Renoir, John Singer Sargent and William Merritt Chase; her real estate and financial investments; and a vast doll collection, from porcelains to Barbies, said John D. Dadakis, a lawyer at the firm Holland & Knight, who filed the will.

Mrs. Clark’s nurse and close friend, Hadassah Peri, is the individual who will benefit most. She will get Mrs. Clark’s hundreds of dolls, potentially worth millions of dollars. Ms. Peri will also receive 60 percent of the various assets, worth about $40 million, including investments and much of her real estate holdings, not specifically bequeathed in the will. Mrs. Clark’s goddaughter, Wanda Styka, will get 25 percent.

Most of Mrs. Clark’s assets will go into a foundation that will be established to promote the arts. It will be directed in part by the man who drafted the will, her New York lawyer, and her accountant, both of whom Manhattan prosecutors are investigating for how they handled Mrs. Clark’s money. The foundation, according to the will, will receive her Santa Barbara estate, most of her art collection, all of her musical instruments and her rare book collection.

The will, dated April 19, 2005, leaves $1 million to Beth Israel Medical Center, where she lived in her final years, even while in good health, and where she died; $500,000 to her assistant; and $100,000 to a physician. A 1907 original from Claude Monet’s Water Lilies series — kept from public view for more than eight decades — is given to the Corcoran Gallery of Art in Washington.

Perhaps the most notable provisions in the will are those that will leave $500,000 each to Mrs. Clark’s New York lawyer, Wallace Bock, and to her accountant, Irving H. Kamsler, and the section that states explicitly that no family members were beneficiaries because of her minimal contact with them.

The Manhattan district attorney’s office is investigating how Mr. Bock and Mr. Kamsler have handled Mrs. Clark’s money, according to a person briefed on the case who spoke on the condition of anonymity.

Mr. Bock drafted the will that was filed on Wednesday, even though professional rules generally prohibit lawyers from drafting wills in which they are beneficiaries. Exceptions can be granted, however, if the lawyer provides the surrogate’s court with facts showing that the person legitimately wanted to give him the gift, said Ira Bloom, a trusts and estates professor at Albany Law School.

Mr. Bock and Mr. Kamsler also stand to gain significant commissions because the will names them the executors of Mrs. Clark’s estate and it names them to the board of the new foundation.

Mr. Dadakis, who is representing Mr. Bock and Mr. Kamsler in the surrogate’s court proceeding, said that both men had done what Mrs. Clark had asked of them, and that she left them money because they were close to her.

“When you understand who Mrs. Clark was,” Mr. Dadakis said, “I think you clearly see that this is a lady that was very strong willed. This will speaks for that being strong willed, the way she was.”

Robert J. Anello, who represents Mr. Bock in the criminal investigation, said the will was evidence that his client had acted “consistent with her wishes and he’s done that remarkably well.”

While it is too early to tell whether anyone will object to the will, some of Mrs. Clark’s distant relatives have in the past questioned whether Mr. Bock and Mr. Kamsler acted in her best interest and said they blocked visits from the relatives