Year: 2006

[b]Money dispute between Michael Jackson, ex-associate goes to jury[/b] LINDA DEUTSCH Associated Press SANTA MONICA, Calif. – A bitter money dispute between Michael Jackson and a former associate was placed in the hands of jurors Thursday after the singer’s lawyer portrayed plaintiff F. Marc Schaffel as a man who betrayed the star and urged them to “send him from this courtroom with nothing.” Schaffel’s lawyer contended in rebuttal that jurors should use a special logic in dealing with the case, a logic that exists only in “Michael world, not our world.” “It’s a world where a superstar professes love for Marc Schaffel and entrusts him … Michael world – a world without receipts,” said attorney Howard King.

Schaffel claims Jackson owes him $1.4 million in loans and expenses. Jackson countersued and his attorney, Thomas Mundell, told the jury that Schaffel actually owes the pop star $660,000.

[b]Attorney says Jackson ‘useless’ in own business matters[/b] LINDA DEUTSCH Associated Press SANTA MONICA, Calif. – Michael Jackson’s lawyer told jurors Thursday that a former associate suing the singer owes Jackson $660,000 and that the pop star owes the man nothing. Answering claims by F. Marc Schaffel’s lawyer that Jackson owes $1.4 million, attorney Thomas Mundell outlined every bill and claim by Schaffel and said the former associate was guilty of a breach of fiduciary duty and fraud in his handling of accounts for a business he formed to do work for the pop star. The allegations came in the conclusion of the defense argument. The case was expected to go to the jury after a rebuttal by the plaintiff’s attorney Howard King. In his argument, Mundell showed that the bank accounts for the business, which had once totaled millions, were virtually empty within a month after Jackson fired Schaffel. “The accounts were pretty much looted,” he said, and reiterated his claim that in the following year Schaffel tried to do a side deal to sell rights to a Jackson recording to a Japanese company, Music Fighters, and took $400,000 from that deal to make a down payment on his own home.

[b]Forensic accountant challenges plaintiff’s claims against Jackson[/b] By LINDA DEUTSCH, AP Special Correspondent Wednesday, July 12, 2006 (07-12) 12:08 PDT Santa Monica, Calif. (AP) — A forensic accountant hired by Michael Jackson’s lawyer testified Wednesday that a former associate who is now suing the singer used money from a Japanese record production company for the down payment on his own $1.9 million home rather than for the business expenses he claimed. [b] Jan Goren, who showed jurors how he traced millions of dollars through the various bank accounts of F. Marc Schaffel, also said he found no substantiation for a $300,000 payment Schaffel claimed he provided to a mysterious “Mr. X” in South America on Jackson’s behalf.[/b] The testimony was presented as the trial neared the closing arguments phase. Schaffel’s lawsuit claims Jackson owes him $1.6 million for various endeavors he worked on for the pop star. Jackson’s side has sought to show Schaffel enriched himself at the singer’s expense, outweighing any sums that might actually be owed.

[b]Jackson lawyer tries to show ‘pattern of false claims’ in suit[/b] By LINDA DEUTSCH The Associated Press SANTA MONICA Michael Jackson’s attorney called a forensic accountant to the stand Tuesday to try to show that a former associate suing the pop star for $1.6 million deceptively juggled money to enrich himself. Accountant Jan Goren said he was able to trace most of the complicated transactions in a ledger kept by plaintiff F. Marc Schaffel, but could not find that all of the explanations by Schaffel were accurate. Schaffel has brought a complex case involving sums he claims he’s still owed, including royalties from a charity record project and from two video programs about Jackson that aired on Fox, among others. Jackson attorney Thomas Mundell has pointed to a lack of receipts in some cases or called witnesses to broadly undermine the credibility of Schaffel’s claims. Goren, for instance, said a $500,000 transaction Schaffel claimed was a loan to Jackson was not a loan at all.

[b]Former Jackson lawyer testifies on ill-fated charity record[/b] By LINDA DEUTSCH The Associated Press SANTA MONICA A former lawyer for Michael Jackson testified Tuesday that he tried to convince a Japanese company not to negotiate with a fired associate of the pop star for rights to a charity recording, but the company proceeded anyway with efforts to acquire the ill-fated song and stage a concert tour. Zia Modabber, testifying in a $1.6 million lawsuit against Jackson by former associate F. Marc Schaffel, said that when he learned of Schaffel’s contacts with the company, Music Fighters, his first concern “was to find out who they were and whether they were legitimate people to negotiate with. I never got to the bottom of it.” Modabber was put on the stand by Jackson’s attorney to support the pop star’s position that Schaffel, who claims he’s still owed royalties and other debts, enriched himself at Jackson’s expense while producing “What More Can I Give,” a song that was intended raise money for victims of the Sept. 11, 2001, terrorism.

[b]Witness: Jackson ‘angry, upset’ at associate’s past in gay porn[/b] LINDA DEUTSCH Associated Press SANTA MONICA, Calif. – In November 2001, Michael Jackson was oblivious to the fact that the man he hired to produce a charity recording to benefit victims of the Sept. 11 terror attacks had been a producer of gay pornographic movies, the singer’s former lawyer testified Monday. Zia Modabber said he broke the news to Jackson about F. Marc Schaffel’s background and met with the pop star in the middle of the night to show him a video of Schaffel directing a gay porn scene. “Can you describe Mr. Jackson’s reaction?” asked Thomas Mundell, who is defending Jackson against Schaffel’s claims that the pop star still owes him $1.6 million. “I think he didn’t want to believe it was real or true,” said Modabber. “He appeared angry, upset.”

Posted on Mon, Jul. 10, 2006 [b]Jackson defense in lawsuit targets plaintiff’s backdated checks[/b] LINDA DEUTSCH Associated Press SANTA MONICA, Calif. – In the days after being fired by Michael Jackson, former associate F. Marc Schaffel rushed to issue 18 backdated checks totaling $784,000, the pop star’s attorney showed Monday. Schaffel, who is suing Jackson for $1.6 million, testified in Superior Court that he wrote the checks for items including prepayment of $54,000 in rent on his home, prepayment of utilities and phone bills, and reimbursement for expenses such as camera rentals after he received the termination letter on Nov. 15, 2001. Showing Schaffel one of the checks, Jackson attorney Thomas Mundell said, “And you dated it Nov. 14 because you knew if you dated it after that you would run into problems because of the termination?” “Yes,” said Schaffel. Mundell asked, “Isn’t it true you falsified books and records to try to get as much money as possible from Mr. Jackson before your termination?”

7-8-06 [b]Jackson begs to differ over cash claims[/b] By Michael J. Tittinger Daily Press Staff Writer SM COURTHOUSE — The defense of Michael Jackson began in earnest on Friday in the $1.6 million lawsuit brought against the entertainer by a former associate, a day highlighted by bizarre twists such as cash loans smelling of French fries and a $1 million gift given by the singer to late actor Marlon Brando. The jury began the day watching hours of videotaped testimony by Jackson, who repeatedly said he couldn’t remember the details, financial or otherwise, of his dealings with F. Marc Schaffel, a former producer of adult films. Schaffel, who claims he was empowered to negotiate creative projects for Jackson in return for a percentage of the profits, was let go in 2001 after Jackson learned he was involved in the adult entertainment business. He then was back on the scene in 2003 and claims he is due unpaid royalties from a pair of TV specials.