Anthony Pellicano wiretapping scandal

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The Anthony Pellicano wiretapping scandal was a wide-ranging criminal investigation into the illegal activities of Anthony Pellicano, a prominent Hollywood fixer and private investigator. Beginning with an FBI raid in November 2002, the investigation ultimately resulted in the conviction of Pellicano and numerous associates including law enforcement officers, attorneys, a film director, a software developer, and a FBI special agent. The scandal exposed a network of illegal wiretapping, racketeering, bribery, and witness tampering operating at the heart of the entertainment industry for over a decade.

Contents

Background

Anthony Pellicano had built a reputation over many years as a discreet fixer for Hollywood celebrities and entertainment industry power brokers, charging large retainers to solve their legal and personal problems. His clients included prominent figures such as Tom Cruise, Chris Rock, Michael Ovitz, Kevin Costner, and Courtney Love, as well as entertainment attorneys including Bert Fields and Terry Christensen. [1] [2]

Unknown to most of his clients, Pellicano operated a criminal enterprise that included wiretapping the phones of adversaries in legal disputes, bribing members of the Los Angeles Police Department and Beverly Hills Police Department to access confidential law enforcement databases, and intimidating journalists and witnesses. [3]

Discovery and initial investigation

The Anita Busch incident

The investigation began after journalist Anita Busch, then a reporter for the Los Angeles Times who had been writing about Steven Seagal and Michael Ovitz — both Pellicano clients — discovered her car had been vandalized in 2002. Her windshield had been smashed and a dead fish, a red rose, and a sign reading "Stop" had been placed on the car, constituting an apparent death threat. [4]

The FBI raid

On November 21, 2002, FBI agents raided Pellicano's offices in connection with a separate matter: a threat made against film producer Julius R. Nasso, who was suing Steven Seagal. During the raid, agents discovered two practice grenades modified to function as homemade bombs, military-grade C-4 plastic explosives, firearms, and approximately $200,000 in cash. [5] [6]

Pellicano pleaded guilty to illegal possession of dangerous materials and served thirty months in federal prison. While he was incarcerated, federal investigators continued building the broader wiretapping case.

Formal indictment

On February 4, 2006, Pellicano was formally arrested on additional charges. On February 6, 2006, in the United States District Court for the Central District of California, he was indicted on 110 counts including racketeering, conspiracy, wiretapping, witness tampering, identity theft, and destruction of evidence. [7] The indictment was amended on February 15, 2006 to include further charges of wiretapping and extortion. Pellicano was denied bail.

In June 2006, the Los Angeles Times reported that Pellicano had performed an illegal background check on a law enforcement official investigating a fake passport scheme involving Pellicano's client, Christophe Rocancourt. [8]

The wiretapping operation

Prosecutors alleged that Pellicano ran a sophisticated illegal wiretapping enterprise on behalf of paying clients, supported by corrupted law enforcement contacts and custom software. [9] Among those whose phones were alleged to have been tapped were Sylvester Stallone [10] and Keith Carradine, while confidential police records were accessed on Garry Shandling and Kevin Nealon. [11]

Kirk Kerkorian / Lisa Bonder

Attorney Terry Christensen retained Pellicano to wiretap the phone of Lisa Kerkorian during her divorce and paternity dispute with billionaire Kirk Kerkorian, in an effort to disprove her claims regarding the paternity of her daughter. [12] In 2006, Bonder sued her own attorneys, alleging they had been working for Kerkorian and had retained Pellicano to wiretap her phone during the proceedings.

Tom Cruise / Nicole Kidman

Cruise's divorce attorney Dennis Wasser retained Pellicano during the Tom CruiseNicole Kidman divorce proceedings. Tapes of telephone conversations from 2001, made shortly after the announcement of the divorce, were found in Pellicano's offices during the 2002 FBI raid. Wasser was named a person of interest but was not charged. [13] In July 2012, Cruise was separately accused of conspiring with Pellicano to create a wiretap during the divorce proceedings. [14]

Steve Bing / Elizabeth Hurley

In 2002, billionaire Steve Bing retained Pellicano to investigate his former girlfriend, actress Elizabeth Hurley, in connection with her pregnancy. [15] Separately, Pellicano had obtained a strand of Bing's used dental floss to conduct DNA analysis in the Bonder–Kerkorian paternity dispute, proving Bing was the father of Bonder's daughter. Between June 2000 and August 2002, Bing paid Pellicano $335,000. [16]

Extortion of Ron Burkle

Pellicano threatened financier Ron Burkle with extortion of between $100,000 and $250,000 to avoid an investigation by Michael Ovitz, another of his clients. [16]

Convictions

Anthony Pellicano

The jury trial commenced in early 2008, having been delayed three times due to a lengthy discovery process and issues retaining defense counsel. [17] On May 15, 2008, Pellicano and four co-defendants were found guilty of charges including wiretapping, racketeering, wire fraud, and computer fraud. [18] In December 2008, the court denied Pellicano's request for concurrent sentencing. Federal Judge Dale S. Fischer sentenced him to 15 years in federal prison and fined him $2,000,000. [19]

The U.S. 9th Circuit Court of Appeals upheld the majority of his convictions, overturning only two counts for aiding and abetting computer fraud and unauthorized computer access. The most serious convictions, for running a criminal enterprise, remained intact. [20] Pellicano was incarcerated at FCI Big Spring in Texas and later at Terminal Island in California. [21] He was released on March 22, 2019. [22]

Law enforcement

Technical associates

John McTiernan

Film director John McTiernan was convicted and sentenced to prison for lying to the FBI about his dealings with Pellicano. [28]

Mark Rossini and Linda Fiorentino

Actress Linda Fiorentino, developed a relationship with Pellicano prior to his imprisonment, began dating FBI special agent Mark Rossini in 2006 after Pellicano was charged with new crimes. Fiorentino told Rossini she was researching a screenplay based on the Pellicano case and persuaded him to illegally access FBI computers to obtain classified case files, which she then delivered to Pellicano's defense lawyers. [29] Rossini resigned from the FBI after 17 years as a special agent. He pleaded guilty in 2009 and received a sentence of 12 months' probation and a $5,000 fine. [30]

Robert Pfeifer

Robert Joseph Pfeifer, at the time an executive at Hollywood Records and a friend of Pellicano, was arrested on February 3, 2006 and charged with unlawful wiretapping and conspiracy. Pfeifer's then-girlfriend, Erin Finn, assisted FBI lead agent Stanley Ornellas in the investigation of Pfeifer and Pellicano. [31]

Civil litigation

Anita Busch

On May 28, 2004, journalist Anita Busch commenced a civil action against Pellicano alleging harassment, including the 2002 death threat involving the vandalized car. [32]

Class action: Kasper v. Pacific Bell

A class action lawsuit, Alexander Kasper v. Pacific Bell Telephone Company, was filed on September 8, 2006 in the Los Angeles County Superior Court on behalf of individuals on the receiving end of Pellicano's wiretapped calls — parties who had no knowledge their conversations were being recorded. [33] The case was settled. [34]

Subjects of investigation not charged

Legacy

The scandal exposed systematic corruption at the intersection of law enforcement and the entertainment industry, demonstrating how wealthy clients could pay to have the legal system weaponized against adversaries through illegal surveillance. The case prompted significant discussion about the culture of secrecy endemic to Hollywood power structures and the use of private investigators to conduct illegal surveillance on behalf of celebrities and corporations.

Following his release in 2019 and the conclusion of his probation in 2022, Pellicano returned to work as a self-described "negotiator" handling corporate disputes, including work for billionaire Daryl Katz. [36]

See also

References

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  2. "Hollywood Hacker Anthony Pellicano Gives Jailhouse Interview". ABC News. Retrieved August 6, 2024.
  3. Miller, James Andrew (February 14, 2018). "The Anthony Pellicano Prison Interview: Hollywood's Notorious Fixer on His Victims, Enablers and a Coming Release". The Hollywood Reporter. Retrieved January 25, 2019.
  4. Belloni, Matthew (June 20, 2012). "Pellicano Victim Anita Busch Breaks Silence to Oppose Bail Request, Reveal New Questions in Wiretap Case". The Hollywood Reporter . Retrieved January 25, 2019.
  5. Lasden, M. "The Pellicano effect" (PDF). California Lawyer . Loyola Law School, Los Angeles. Retrieved December 21, 2010.
  6. Cruz, G. (December 14, 2008). "Anthony Pellicano". Time . Archived from the original on December 16, 2008.
  7. "Private eye indicted". news.yahoo.com. Associated Press. February 6, 2006.[ dead link ]
  8. "Two Hollywood scandals connect". UPI.com. United Press International. June 7, 2006. Retrieved March 3, 2019.
  9. Abramowitz, Rachel; Welkos, Robert (February 26, 2006). "Anthony Pellicano and his tangled web". Los Angeles Times. Retrieved November 16, 2024.
  10. Shprintz, J. (November 18, 2003). "Stallone is queried in sleuth case". Variety. Retrieved October 17, 2006.
  11. Abramowitz, Rachel; Welkos, Robert (February 26, 2006). "Anthony Pellicano and his tangled web". Los Angeles Times. Retrieved November 16, 2024.
  12. "Lawyer files suit over alleged wiretapping". Los Angeles Times. August 10, 2006.[ dead link ]
  13. Weinstein, Henry; Philips, Chuck; Krikorian, Greg (November 12, 2003). "Celebrity lawyer Fields is subject of wiretap probe". Los Angeles Times. Retrieved November 2, 2021.
  14. Howard D. (July 6, 2012). "Tom Cruise accused of wiretap conspiracy with convicted criminal Anthony Pellicano during Nicole Kidman divorce". Celebuzz.com. Retrieved February 12, 2013.
  15. Masters, Kim (June 30, 2020). "Behind Steve Bing's Sudden, Tragic End". The Hollywood Reporter. Retrieved August 7, 2024.
  16. 1 2 Halbfinger D. M. "Billionaire reports a shakedown in Hollywood". The New York Times, April 20, 2006. Accessed April 12, 2007.
  17. "Pellicano's wiretap trial pushed to August". Variety. Associated Press. November 20, 2006. Retrieved December 18, 2013.
  18. Barnes, Brooks (August 29, 2008). "Pellicano and a lawyer convicted in wiretapping". The New York Times . Retrieved December 15, 2008.
  19. Barnes, Brooks (December 15, 2008). "15 years for Hollywood investigator". The New York Times. Associated Press. Retrieved December 15, 2008.
  20. Dolan, Maura (August 25, 2015). "Anthony Pellicano, former celebrity private eye, loses bulk of his appeal". Los Angeles Times . Retrieved November 2, 2021.
  21. "Anthony Pellicano to Newsweek: Those News of the World Guys Were Amateurs". Reuters . August 7, 2011.
  22. Maddaus, Gene (March 22, 2019). "Hollywood Fixer Anthony Pellicano Released From Federal Prison". Variety. Retrieved May 4, 2019.
  23. 1 2 3 4 5 Johnson, Ted (August 25, 2015). "Anthony Pellicano Faces Re-Sentencing After Court Overturns Convictions". Variety . Retrieved December 16, 2017.
  24. Blum H. and Connolly J. ""The Pellicano brief"" (PDF). Archived from the original on February 9, 2006. Retrieved January 13, 2006.{{cite web}}: CS1 maint: bot: original URL status unknown (link)Vanity Fair, March 2004, page 222.
  25. Blum H. and Connolly J. ""The Pellicano brief"" (PDF). Archived from the original on February 9, 2006. Retrieved January 13, 2006.{{cite web}}: CS1 maint: bot: original URL status unknown (link)Vanity Fair, March 2004, page 222.
  26. Shprintz, Janet; McClintock, Pamela (September 24, 2007). "John McTiernan sentenced to prison". Variety . Archived from the original on January 4, 2010.
  27. Finke, Nikki (December 12, 2006). "Co-Defendant Cops Guilty Plea In Pellicano Scandal; Big Victory For Feds". Deadline Hollywood . Retrieved December 15, 2017.
  28. Shprintz, Janet; McClintock, Pamela (September 24, 2007). "John McTiernan sentenced to prison". Variety . Archived from the original on January 4, 2010.
  29. Stein, Jeff (January 14, 2015). "The Inside Information That Could Have Stopped 9/11". Newsweek . New York, New York.
  30. Wilber, Del Quentin (May 15, 2009). "Ex-FBI Agent Mark Rossini Sentenced for Using Bureau Computers in Pellicano Case". The Washington Post . Washington, D.C.
  31. Krikorian, Greg (February 5, 2006). "Music figure held in Pellicano case". Los Angeles Times. Retrieved December 21, 2010.
  32. Copy of Busch's lawsuit against Pellicano. The Smoking Gun.
  33. Alexander Kasper v. Pacific Bell Telephone Company(Los Angeles County Superior CourtSeptember 8, 2006), Text .
  34. "Anthony Pellicano Wiretap Lawsuit Settlement". The Hollywood Reporter . Retrieved February 22, 2026.
  35. Weinstein, Henry; Philips, Chuck; Krikorian, Greg (November 12, 2003). "Celebrity lawyer Fields is subject of wiretap probe". Los Angeles Times. Retrieved November 2, 2021.
  36. "Anthony Pellicano Working for Billionaire Daryl Katz to Squash Sex Lawsuit". Variety. August 25, 2022.