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.”
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