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Photo: Columnist
Jared Paul Stern, shown at a fashion show in 2003, is accused of trying to
extort money from a billionaire. "We know how to destroy people," Stern
said.
Big scandal rocked
New York media world and the gossip cosmos, this week. Yes sir, media can
make you or break you. And many journalists and media personalities make
their living from gossiping about you or even badmouthing you. The biggest
story of the week, is what the New York imes reported about Jared Paul
Stern, a powerful gossips columnist working for the The New York Post. And
here is the full story according to the Times: The New York Post is
cooperating with a federal investigation into whether a longtime
contributor for the Page Six gossip column — the avidly read daily log of
wrongdoing, double-dealing and sexual indiscretions by celebrities both
minor and major — tried to extort money from a California billionaire,
according to a spokesman for the newspaper. Several people involved in the
investigation said the reporter, Jared Paul Stern, had been captured on a
video recording demanding a $100,000 payment and a monthly stipend of
$10,000 from Ronald W. Burkle in return for keeping negative information
about him out of the paper. Mr. Stern was suspended Thursday pending the
outcome of the investigation, and could be dismissed, according to Howard
Rubenstein, the spokesman. But while the accusations against Mr. Stern are
serious, it is the specter — raised by at least three people who say they
know what is on the tapes — that Mr. Stern implicated several celebrities
and New York power figures in an undisclosed, symbiotic relationship with
Page Six that prompted an extraordinary day of full-throated and at times
gleeful gossip among those who love, hate and avidly read the column.
Those who say they know what is on the tape said Mr. Stern named Harvey
Weinstein, the co-founder of Miramax films, and Ronald O. Perelman, the
chairman of Revlon, as being among those who have had their coverage on
the page finessed. Through a spokesman, Mr. Weinstein flatly denied any
improper relationship with the column and its main editor, Richard
Johnson. Mr. Perelman's company once hired the fiancée of Mr. Johnson,
Sessa von Richthofen, whom he is marrying today, as an administrative
assistant. The executive who hired her said yesterday she had not been
pressured into hiring her. In the recordings, Mr. Stern never asserted
that money had been used for preferential coverage. Mr. Rubenstein, who
said that lawyers for the newspaper were reviewing Mr. Stern's work, added
that the authorities had not asked for information concerning any other
reporters for the gossip column. He said the paper was preserving Mr.
Stern's computer records and other material for the authorities to review.
One federal law enforcement official said the investigation was in its
early stages and that it was unclear if any charges would be brought
against Mr. Stern. Mr. Stern's lawyer, Edward Hayes, defended the writer,
who has also edited a Page Six magazine for The Post. "Jared did not and
could not guarantee him good coverage or protect him from bad coverage,"
he said of Mr. Stern's dealings with Mr. Burkle. "Jared made a mistake.
He's sorry if it
embarrassed The Post and nothing actually happened, and hopefully it will
be over and done with." Mr. Stern said last night, "I apologize for
causing The New York Post any embarrassment after almost 11 years of loyal
and dedicated service, and hope they would not rush to judgment." Gary
Ginsberg, an executive vice president with the News Corporation, Rupert
Murdoch's international media company that owns The Post, said of the
investigation, "We're taking it very seriously." But he added that the
allegations had no broader implications for The Post, and noted that Mr.
Stern was a part-time contributor. He said that the Page Six magazine had
appeared only once. "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. This is highly aberrational,"
he said. The investigation was front-page news for The Post's top rival,
The Daily News, which first reported many of the details of the
accusations against Mr. Stern.
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Photo: Stern is suspected of demanding $100,000 from Ronald
W. Burkle, pictured in 1997, in exchanged for not writing negative stories
about him. The scandal that is
rattling Page Six began about a year ago, when items about Mr. Burkle, a
supermarket magnate and Democratic fund-raiser, began appearing in the
column more often. The accounts of Mr. Burkle's dealings with Mr. Stern and
The Post are based on interviews with several associates of Mr. Burkle, as
well as two other people who said they knew what is on the tapes. They all
refused to be named because of the federal investigation. Associates of Mr.
Burkle said that Page Six items about the billionaire began appearing last
year that were wildly inaccurate, without Mr. Burkle's even being called for
comment. Last summer, one associate said, Mr. Burkle arranged to meet Mr.
Stern at the Palace Hotel in Manhattan after a friend suggested Mr. Stern
could give him some insight into Page Six. There, Mr. Stern asked Mr. Burkle
to become a source, dishing on his famous acquaintances. Mr. Burkle declined
but as a favor agreed to buy 60 shirts from Skull and Bones, Mr. Stern's
clothing line. The associate said Mr. Burkle protested to editors, including
Mr. Johnson and even wrote a personal letter of complaint to Mr. Murdoch, a
copy of which was obtained by The New York Times.

Photo: Ronald O. Perelman, the chairman of Revlon, is named
among those who have had their coverage finessed.
"Every time I am mentioned in your newspaper," the letter
read, "the facts are just plain wrong." The letter concluded: "I hate to
bother you with this; but at the end of the day, it is your newspaper."
Colin Myler, the paper's executive editor, wrote back and promised to
correct any errors, the associate said. Mr. Burkle also had his lawyer,
Martin D. Singer, send several letters threatening litigation, according to
several people with knowledge of the correspondence. On March 14, the
associate said, an employee of Mr. Burkle's received an e-mail message from
Mr. Stern, a contributor who worked two days a week for Page Six, suggesting
that Mr. Burkle had "the means" to change the column's treatment of him. "I
understand Ron is upset about the press he's been getting," the e-mail
message read. "If he's really concerned, he needs a strategy for dealing
with it and regulating it rather than merely reacting. It's not easy to
accomplish, but he certainly has the means to do so." At that point, Mr.
Burkle suspected he was being extorted, the associate said. Then, "he
reached out to his attorney, who then reached out to law enforcement," the
associate said. According to many people involved in the episode, Mr. Stern
agreed to meet Mr. Burkle face to face at least two times at Mr. Burkle's
loft in TriBeCa, the first of which was on March 22. Mr. Burkle's security
team, aided by a New York City-based private investigations firm, recorded
the meetings in the loft over the last few weeks, according a person who was
briefed on the sessions and was granted anonymity because the investigation
is continuing. At the final meeting, on March 31, a federal agent and an
assistant United States attorney were with Mr. Burkle's security detail to
monitor the recording. The recordings were turned over to the federal
authorities. In their meetings, Mr. Stern described three levels of
"protection" he could offer Mr. Burkle, according to those with knowledge of
what is captured on the tapes. |

Photo: Rupert Murdoch,
pictured in March, owns the New York Post. A spokesman says the company is
taking the investigation "very seriously."
captured on the tapes.
When Mr. Burkle pressed Mr. Stern to explain how this would work, Mr. Stern
at first cited a few examples involving Mr. Johnson, saying that his boss
had a "script deal" with Mr. Weinstein — something the movie executive
denied yesterday. "The New York Post and Page Six have always been above
board with our company," said a Weinstein company spokesman. Mr. Stern also
said that Mr. Johnson's fiancée, Ms. von Richthofen, had been employed by
Mr. Perelman, the financier. Last year, Ms. Richthofen was hired as an
administrative assistant to Christine Taylor, the senior vice president of
corporate communications of McAndrews and Forbes, Mr. Perelman's
Manhattan-based holding company. Ms. Taylor said she knew Ms. Richthofen and
had not been pressured to hire her. Ms. Richthofen, who resigned from the
company a month ago, was paid no differently than anyone else would be in
the position, she said. Mr. Perelman could not be reached for comment
yesterday.
When Mr. Burkle asked
Mr. Stern in the tapes if he should hire Ms. Richthofen, Mr. Stern steered
the discussion of payments back to himself, according to one person involved
in the investigation. Mr. Johnson referred calls to Mr. Rubenstein. The
accusations against Mr. Stern were striking for the boldness of his alleged
behavior and the amount of money he is accused of requesting. But gossip
columns have always occupied a murky corner in the realm of journalistic
standards, which traditionally preclude writers and editors from accepting
gifts from those they cover. Mr. Stern also cited the example of Joe
Francis, the creator of the "Girls Gone Wild" video series, who Mr. Stern
said had offered to fly much of the staff of Page Six to a place Mr. Francis
owns in Mexico on his private jet for Mr. Johnson's bachelor party.
According to Mr. Rubenstein, Mr. Francis was a friend of Mr. Johnson's. In
March, an item appeared in The Post saying that Mr. Francis could be the
next Hugh Hefner. Mr. Francis could not be reached yesterday. Mr.
Johnson also accepted a free trip to the Academy Awards last month, courtesy
of ABC and Mercedes-Benz, including first-class airfare and a three-night
stay at the Four Seasons Hotel. Mercedes-Benz also provided a car and driver
for Mr. Johnson throughout the weekend, a spokesman for Mercedes-Benz, Geoff
Day, confirmed.
Mr. Stern, 35, began
working full time for The Post in 1997. In 2003, Bonnie Fuller hired him to
be the executive editor of Star, a position he left within a year. He
returned to The Post as a contributor. In addition he wrote for other
publications, including two articles for The Times. In the March 31 meeting,
Mr. Burkle mainly haggled with Mr. Stern over how his payments should be
made: in cash, as Mr. Stern wanted, or by wire transfer, as the authorities
had pressed Mr. Burkle to insist, according to a person involved in the
investigation. In that meeting, the person involved in the investigation
said, Mr. Stern spoke of Page Six's power.
"We know how to destroy people," Mr. Stern said, according to a person
reading a transcript of the meeting. "It's what we do. We do it without
creating liability. That's our specialty."
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