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New York Monthly Herald. May 2006 Issue P. 5   Cont'd from Page 4                                                                                                           Continues on page 6

New York Scene

Federal Investigation:  Powerful gossips columnist allegedly tried to extort money from a California billionaire

New York Post's Jared Paul Stern: "We know how to destroy people, it's what we do. We do it without creating liability. That's our specialty."

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 month. 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 Times 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.

Neiman MarcusThe 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. 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.

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