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He has dirt--will he spill the beans?

Ex-Chicagoan's arrest in PI scandal has celebs looking over shoulders

By Vincent J. Schodolski
Tribune national correspondent

May 2, 2006

LOS ANGELES -- He started out as a collection man for the Spiegel catalog in Chicago and ended up as the private eye to Hollywood's rich and famous.

Now he is in jail, and that is making a lot of the entertainment world's movers and shakers very nervous. He and more than a dozen people have been indicted in recent months in connection with an FBI investigation into illegal wiretaps and extortion, and more indictments are expected.

Anthony Pellicano is the kind of private eye a screenwriter would invent if Pellicano had not invented himself, a man who came a long way from his days as a high school dropout in Cicero, Ill.

He has represented entertainer Michael Jackson and helped get automaker John DeLorean acquitted. He worked for Dean Martin, Peggy Lee, Chris Rock and former Disney President Michael Ovitz.

From his early days in Chicago, when he called himself Tony Fortune, to the current legal proceedings involving his work as private eye to the stars, he has rubbed shoulders with luminaries from business and politics to an A-list of entertainment moguls.

In 1977, Pellicano found the missing bones of Michael Todd--the third husband of Elizabeth Taylor--in the Jewish Waldheim Cemetery in Forest Park, Ill., just yards from the looted grave. The thieves were looking for a diamond ring that reportedly had been buried with Todd. There was no ring.

Pellicano was suspected in 2002 of arranging for a dead fish, a rose and a note that read "Stop" to be left on the car of a reporter who was digging into the private life of actor Steven Seagal.

When FBI agents raided Pellicano's Sunset Strip office after the fish incident, they found cash wrapped in 15 to 20 bundles of $10,000 each. They also found hand grenades and the civilian equivalent of C-4 military explosives. There also were guns.

That landed him in jail, and the FBI probe into his business practices has led so far to him and 14 other people being indicted on charges of illegal wiretapping, embezzlement and extortion. The accused include police officers who allegedly gave Pellicano confidential records, a telephone worker who allegedly helped with phone tapping, and some prominent entertainment figures who hired Pellicano.

Among them was movie director John McTiernan, whose credits include "Die Hard" and "Predator." Last month, McTiernan pleaded guilty to lying to the FBI when he told them he had not hired Pellicano to wiretap another moviemaker. He could be sentenced to up to 5 years in prison.

Pellicano has pleaded not guilty. Repeated calls to Pellicano's lawyer, Steven Gruel, for comment were not returned.

A federal judge has delayed Pellicano's trial until October so defense attorneys will have time to review evidence still being compiled by prosecutors. Assistant U.S. Atty. Daniel Saunders said Monday that he would delay filing crucial documents in the case for fear they will "end up on the front page."

Indictment is a bombshell

"The scope and ramifications of the Pellicano indictment to the entertainment industry simply cannot be overstated," said Lucia Coyoca, an entertainment lawyer. "Pellicano worked for years with some of Hollywood's biggest entertainment lawyers. The case has opened up for discussion what has long been suspected in entertainment litigation--that there are those in the industry who use illicit means to win their litigation battles."

Pellicano, 62, moved from Chicago to Los Angeles 23 years ago and slowly established himself as the go-to guy for celebrities in a jam.

When Michael Jackson was accused of molesting a 13-year-old boy in the early '90s, it was Pellicano who took over damage control and sought dirt on the accuser and his family.

In 1989, when Roseanne Barr wanted to know if a woman claiming to be the daughter she put up for adoption nearly two decades before was her child, Pellicano was on the case.

For a retainer said to be around $25,000, Pellicano promised results. One tactic was to find skeletons in the closets of people attacking his clients to neutralize them, his critics say.

He established an expertise in video and audio surveillance and used those skills to enhance existing tapes or create high-quality tapes for clients.

One such instance was in the DeLorean drug case. The FBI had videotaped DeLorean in a room in 1982 where he was accused of trying to import cocaine and sell it to help finance his sports car company.

In 1984, using the FBI tapes enhanced by Pellicano, DeLorean's lawyers convinced a judge that the FBI had entrapped their client. He was acquitted on all charges.

Pellicano even got involved in the womanizing allegations against Bill Clinton. In 1992, when a recording was released of conversations between then-Arkansas Gov. Clinton and cabaret singer Gennifer Flowers, Pellicano did an analysis and denounced the tape as "selectively edited" and "suspect."

More recently, The New York Times reported that supermarket billionaire Ron Burkle had accused Pellicano of trying to shake him down. The Times obtained an FBI summary of its discussions with Burkle and got corroboration from the billionaire, a friend to Bill and Hillary Clinton. According to Burkle, Pellicano approached him in 2002 and demanded $100,000 to $250,000 in exchange for a promise not to investigate him.

Burkle said he provided no money but did do favors, such as arranging for Pellicano's son to swim with dolphins at Sea World.

Remember Tony Fortune?

When he worked for the Spiegel catalog, he called himself Tony Fortune. Along the way he had four wives (he married one woman twice) and nine children, according to his longtime rival, Chicago private investigator Ernie Rizzo.

He once won an appointment to the Illinois Law Enforcement Commission but resigned in 1976 after reports that he took a $30,000 loan from the son of underworld figure Paul "The Waiter" Ricca. Pellicano said the son was a childhood friend and his daughter's godfather.

Not everyone thinks Pellicano was as good at his job as he appeared to be.

"The only thing Tony was ever good at was intimidating people and tapping telephones," Rizzo said. Pellicano kept a baseball bat by his desk at work, according to news reports.

"He watched `The Sopranos' one too many times," Rizzo said.

"The Godfather"-like dead fish was placed on the hood of reporter Anita Busch's car. Busch, who was then working for the Los Angeles Times and later went to The New York Times, walked out of her home one day in June 2002 and saw that her windshield had been smashed.

Busch had been investigating tough-guy actor Seagal and a former partner of his who was suspected of having ties to the Gambino crime family.

When she got closer to the car, she saw the note and what she thought was a bullet hole in the glass.

Police came to investigate, and bomb squad members found an aluminum baking dish with the dead fish inside. There also were a rose and the note telling her to stop reporting.

The following day she was bombarded with phone messages from an unidentified man. When she returned the calls, the man who answered said the original plan had been to blow up her car. The man became a federal informant and his name was never revealed.

Police and FBI investigators thought that the whole business was the work of Pellicano on behalf of Seagal. But The Los Angeles Times recently reported that investigators had concluded Seagal was not involved. It was unclear whether Pellicano was working for Seagal, and it has not been proven that Pellicano was behind the fish incident.

The case that has grown out of Pellicano's original arrest continues to roil. Reports have linked the Pellicano investigation to Ovitz, entertainment lawyer Bert Fields and even Brad Grey, the head of Paramount Pictures.

But at least one person is honored to be a part of the scandal. Actor Kevin Nealon recently wrote a New York Times op-ed column declaring that he finally was famous because his name was in Pellicano's files.

"You're nobody in Hollywood until you get on a list," he wrote. "I missed out on the Heidi Fleiss list," he said in reference to the Hollywood call girl madam. "[And] Mr. Blackwell's `Worst Dressed' list and even the `Where Are They Now?' list. And the only reason I'm not on that last one is that Mr. Pellicano, apparently, always knew where I was."

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Pellicano connections

John McTiernan: "Die Hard" director pleaded guilty to lying to the FBI about hiring private investigator Anthony Pellicano.

Michael Ovitz: Former Disney president reportedly told the FBI he hired Pellicano to get information on 15 to 20 people who were saying negative things about him.

Chris Rock: Comic actor hired Pellicano after being accused of fathering a Hungarian supermodel's baby. (Rock was not the father.)

Keith Carradine: Actor sued Pellicano over alleged wiretapping in divorce case.

Bert Fields: Noted lawyer who has represented such stars as Michael Jackson, Tom Cruise and Steven Spielberg acknowledges being under investigation in the Pellicano case.

Terry Christensen: Prominent lawyer was indicted for allegedly paying Pellicano to illegally wiretap billionaire Kirk Kerkorian's ex-wife.

Sylvester Stallone: Actor once hired Pellicano, according to news reports. Years later, Stallone was alleged victim of wiretap.

Robert Pfeifer: Former Hollywood Records president pleaded guilty to hiring Pellicano to tap ex-girlfriend's phone.

Garry Shandling: Actor was victim of illegal snooping, according to federal indictment.

Roseanne Barr: Comic hired Pellicano in '89 to check on woman who claimed that Barr had given her up for adoption.

Michael Jackson: Entertainer employed Pellicano to investigate 13-year-old accuser in sex abuse case in '90s.

Ron Burkle: Supermarket billionaire says Pellicano tried to shake him down.

Mark Fuhrman: Police investigator in O.J. Simpson case hired Pellicano in the '90s to fight racism allegations.

SOURCE: Tribune news services

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vschodolski@tribune.com