3rd UPDATE: US Senators Seek Investigations Into Alleged News Corp Hacking
July 13 2011 - 5:36PM
Dow Jones News
Four U.S. lawmakers--including House and Senate committee
chairmen--are calling for investigations into a News Corp. (NWS,
NWSA) phone-hacking scandal, with one suggesting that alleged
violations may have occurred in the U.S. and go beyond reporting
tactics in Britain.
On Wednesday, Sen. Frank Lautenberg (D., N.J.), Senate Commerce
Committee Chairman Jay Rockefeller (D., W.Va.) and Sen. Barbara
Boxer (D., Calif.) asked the U.S. Justice Department and the U.S.
Securities and Exchange Commission to investigate whether anyone at
the company violated antibribery laws amid allegations that the
company paid law-enforcement officials for information. House
Homeland Security Committee Chairman Peter King (R., N.Y.) asked
the Federal Bureau of Investigation to investigate whether
reporters at a British paper owned by a News Corp. subsidiary tried
to obtain phone records of victims of the Sept. 11 terrorist
attacks "through bribery and unauthorized wire tapping."
A Justice Department spokeswoman said the agency would review
the letters and declined to comment further. An SEC spokesman
declined to comment. He said he wasn't aware of any earlier cases
in which the SEC had brought charges against a news company
involving payments for information.
On Tuesday, Federal Communications Commission Chairman Julius
Genachowski said that he didn't expect the agency to get involved
in the ongoing investigation in the U.K. He said that the FCC's
mass-media bureau would "do its job if issues arise."
The three Senators raised questions about possible violations of
the U.S. Foreign Corrupt Practices Act, an antibribery law that
U.S. authorities have enforced with vigor in recent years.
"I am writing to express my deep concerns regarding allegations
that News Corporation and its subsidiaries bribed foreign
law-enforcement officials for information to advance their business
interests," Lautenberg wrote to the SEC and the Justice Department.
He said that the law forbids bribery of foreign government
officials, and may "apply to all company employees regardless of
their nationality or where they reside or do business."
Boxer and Rockefeller wrote to the SEC and DOJ that "the
reported allegations against News Corporation are very serious,
indicate a pattern of illegal activity, and involve thousands of
potential victims. It is important to ensure that no United States
laws were broken and no United States citizens were
victimized."
The two lawmakers also asked whether any U.S. citizens' phone
records were hacked in what they say may have been illegal access
of phone records of victims of the Sept. 11 attacks.
"This is going to be a huge issue," Rockefeller told reporters
on Wednesday as he left a vote on the Senate floor. He said that he
may hold hearings in his committee, although jurisdiction would
extend to the Senate Judiciary Committee in the event that an
inquiry focused on criminal activity. "My bet" is "we'll find some
criminal stuff," he told reporters, specifying he meant related to
hacking in the U.S. He declined to elaborate.
King, who represents a district that he said lost more than 150
people in the Sept. 11 attacks, wrote to FBI Director Robert
Mueller that "it is revolting to imagine that members of the media
would seek to compromise the integrity of a public official for
financial gain in the pursuit of yellow journalism." He asked that
the FBI "immediately commence an investigation of News
Corporation."
-By Siobhan Hughes, Dow Jones Newswires; (202) 862-6654;
siobhan.hughes@dowjones.com
--Brent Kendall contributed to this article.
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