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Former Record Exec Pleads Guilty in Wiretap Case

Saturday, April 08, 2006

LOS ANGELES -- A former record company executive pleaded guilty to hiring Hollywood private eye Anthony Pellicano to tap his former girlfriend's phones to learn how the woman might testify in a business lawsuit.

Robert Pfeifer, who once headed Hollywood Records, entered his plea Friday to one count of intercepting wiretap communications, a charge that carries a maximum sentence of five years.

The plea was the latest development in the ongoing investigation of Pellicano, who has worked for some of the biggest names in Hollywood.

The private eye has been charged in a wiretapping scandal that has rattled entertainment and legal circles.

Prosecutors allege Pellicano wiretapped Hollywood stars he was hired to investigate, including Sylvester Stallone and others, and used the information for threats, blackmail and in some cases to help clients gain advantages in legal disputes.

Pellicano, 62, has pleaded not guilty to the charges.

Pfeifer paid Pellicano at least $125,000 in 2000 to eavesdrop on Erin Finn, whose deposition threatened to undermine a lawsuit by Pfeifer against a former employer, court documents said.

Pfeifer "was fully aware of the wiretap and discussed with Pellicano the interception of Finn's telephone calls," court documents said.

On Friday, Pfeifer told U.S. District Judge Dale Fischer that Pellicano's "investigation included wiretapping, and we gained knowledge from that."

Pfeifer, 51, was president of Disney-owned Hollywood Records from 1994 to 1997.

Along with the wiretapping charge, he faces one count of witness tampering. His attorney, Evan Jenness, said outside court that if Pfeifer meets government obligations, the remaining count would be dismissed. She declined to elaborate.

Assistant U.S. Attorney Kevin Lally wouldn't say if Pfeifer was cooperating with prosecutors.

Pfeifer has remained in custody since his arrest in February. On Friday, Fischer set bond at $1 million and scheduled sentencing for June 26.

"He already served more time than he should have based on his culpability," Jenness said.

Fourteen people have been charged so far in the wiretapping case against Pellicano, including two former police officers and a defense attorney who has represented billionaire investor Kirk Kerkorian.

Pfeifer was the fifth person to enter a guilty plea. Four others have admitted a variety of charges, including wire fraud and conspiracy.

Earlier this week, director John McTiernan, whose films include "Die Hard" and "The Hunt for Red October" became the first entertainment figure to face charges when authorities claimed he lied when he said he had no knowledge of wiretapping by Pellicano.

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