Caution: Merging stories

BurkleOK, bear with me. Los Angeles billionaire Ron Burkle has been in the news a lot lately for 1) His divorce, 2) His interest in buying the new McClatchy newspapers, and 3) Being the victim of a shakedown by the New York Post gossip page. Now it turns out that Burkle also has told the FBI that Hollywood private eye Anthony Pellicano demanded up to $250,000 not to investigate him—and that Pellicano claimed to be working for Michael Ovitz at the time.

Today's New York Times P-team (for Pellicano) reports the Burkle-Pellicano connection, wrapping it in a nut graf that says the story "provides a new glimpse into Mr. Pellicano's methods of drumming up new business and holding himself out as a broker between rich and powerful adversaries — thereby drawing them into his realm at Hollywood's underbelly."

In contrast to his run-in with the Post reporter, Jared Paul Stern — which culminated in a videotaped sting in cooperation with law-enforcement officials — Mr. Burkle became friendly with Mr. Pellicano and provided him with favors, but not cash, long after Mr. Pellicano backed off, Mr. Burkle told the F.B.I.

Mr. Ovitz, speaking to investigators, according to F.B.I. summaries, asserted that Mr. Pellicano had investigated him on Mr. Burkle's behalf, but also acknowledged paying Mr. Pellicano $75,000 to dig up embarrassing information on 15 to 20 people including Mr. Burkle. Mr. Ovitz's lawyer, Bart H. Williams, said on Wednesday that Mr. Ovitz had never hired the detective to investigate anyone but those who were suing him — which Mr. Burkle was not, at the time — and that Mr. Ovitz had neither asked for nor knew of any illegal activity by Mr. Pellicano.

"Michael Ovitz never agreed to pay Anthony Pellicano to investigate Ron Burkle," Mr. Williams said. "However, it's not surprising that Mr. Pellicano would try to mislead Mr. Burkle in an effort to drum up business."

Indeed, the material reviewed by The Times shows Mr. Pellicano playing Mr. Burkle and Mr. Ovitz against each other, seeking to use his mission in behalf of Mr. Ovitz to gain a much bigger payday from Mr. Burkle.

Steven F. Gruel, a lawyer for Mr. Pellicano, could not be reached yesterday.

The story is by Times staffer David M. Halbfinger and freelancer Allison Hope Weiner, the veteran Hollywood reporter who also used to be a lawyer at Wyman Bautzer and who Nikki Finke reports had been in talks with Howard Weitzman about doing his autobiography together. According to Finke, Weitzman is the lawyer who introduced Pellicano to Hollywood.

Also: About a third of advertisers in Page Six magazine received favorable mentions in the Post's gossip columns, the NYT reports.

Photo: New York Times

12:21 AM Thursday, April 20 2006 • Link
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