Judge said Kerkorian probably knew of wiretapping
By Gina Keating

Reuters
Thu Sep 24, 2009 1:58pm EDT

LOS ANGELES (Reuters) – A federal judge said that billionaire investor Kirk
Kerkorian probably knew that his ex-wife was being illegally wiretapped
during their child custody dispute, according to court documents.

Kerkorian, the largest shareholder of casino operator MGM Mirage, has
consistently denied that he knew that his attorney Terry Christensen paid
celebrity sleuth Anthony Pellicano to tap the phone of his ex-wife, Lisa
Bonder Kerkorian, in 2002.

Christensen and Pellicano last year were sentenced to federal prison for
their roles in the illegal tapings. Kerkorian, 92, was never charged and is
not under investigation, his attorney said.

A U.S. Attorney’s Office spokesman declined to comment.

But the judge who tried Pellicano and Christensen said in a 2008 opinion
that there was "reasonable cause to believe that (Kerkorian) was" complicit
in their illegal conduct, court documents showed.

The previously sealed opinion by U.S. District Judge Dale Fischer surfaced
on Wednesday in a civil lawsuit brought by Lisa Bonder Kerkorian against her
ex-husband, Pacific Bell Telephone Co, and Christensen.

Fischer’s opinion pertains to whether taped conversations between Pellicano
and Christensen could be used by prosecutors in the criminal trial.

"Because the conversations are not privileged, the Court need not decide
whether Kerkorian was complicit in the alleged illegal conduct," Fischer
wrote in the opinion. "However, the communications themselves provide a
reasonable cause to believe that he was."

Fischer notes in her order that the recordings show that Christensen "does
not deny that he is telling Kerkorian what Pellicano is hearing" (on the
wiretaps).

In another recording, Christensen "explains that he will talk to Kerkorian
about the information that he has received from Pellicano," Fischer’s
opinion says.

In another conversation, Pellicano asks if Kerkorian is happy with his work,
and Christensen replies that "our jaw is still hanging down" over some of
the information Pellicano had obtained, the opinion said.

Seth Hufstedler, an attorney for Kerkorian, said Fischer "said only that
there was reasonable cause to believe" Kerkorian knew about the wiretaps and
that the judge left the matter as "an undecided issue."

Hufstedler knew of "no investigation of Mr. Kerkorian in connection with
this matter."

Pellicano, once known as Hollywood’s private eye to the stars, was sentenced
in December to 15 years in prison for running a criminal enterprise
involving wiretapping and bribery. He also faces more than a dozen civil
lawsuits brought by former targets of his illegal wiretapping.

The former sleuth worked for lawyers representing celebrities including Tom
Cruise, Elizabeth Taylor and Michael Jackson, and presented himself as the
ultimate problem solver.

(Reporting by Gina Keating, editing by Dan Whitcomb, Eric Walsh and Matthew
Lewis)