THE PEOPLE v. MURDOCH

January 12, 2016

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AT THE beginning of 2016 Rupert Murdoch once again dominates British media.

David Cameron is back on side.

Juries have refused to convict Sun journalists of bribing corrupt police officers.

The threat of a tough new media regulator has all but vanished.

In September Murdoch felt strong enough to rehabilitate his beloved Rebekah Brooks.

In December the most dangerous threat — the possibility of corporate charges — was lifted.

Today, the billionaire is more powerful than ever.

But all is not lost.

There are millions of people on three continents who oppose him.

Today Press Gang launches a new campaign — The People versus Murdoch.

We’ve found an important chink in the media mogul’s armour …

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THIS MORNING Press Gang sent a four page letter to the broadcasting regulator Ofcom.

We asked chief executive Sharon White to launch an inquiry into whether Rupert Murdoch and his family are “fit and proper” people to be involved in the satellite television company BSkyB.

Ofcom has this duty under the Broadcasting Acts of 1990 and 1996.

The watchdog looked at the issue back in September 2012 when the phone hacking scandal was at its height.

(Its report can be read here.)

Ofcom criticised Murdoch’s son James, who was in charge of the News of the World, for his handling of the crisis.

It found his actions:

” … fell short of the exercise of responsibility to be expected of the chief executive officer …”

But there wasn’t enough evidence to declare him unfit.

PRIME CONCERNS FOUR DAYS before Christmas the Prime Minister and several Cabinet members attended a private party at the London home of Rupert Murdoch. In 2011, at the height of the hacking scandal, Cameron told Parliament: "The truth is, we have all been in this together. The press, the politicians and the leaders of all parties — and, yes, that includes me ... Throughout all this, all the warnings, all the concern, the government at the time did nothing." The party — reported only by the Guardian — shows Cameron and Murdoch are now comfortably back in harness, "in this together"... Photo: PA

PRIME CONCERNS
FOUR DAYS before Christmas the Prime Minister and several Cabinet members attended a private party at the London home of Rupert Murdoch. In 2011, at the height of the hacking scandal, Cameron told Parliament: “The truth is, we have all been in this together. The press, the politicians and the leaders of all parties — and, yes, that includes me … Throughout all this, all the warnings, all the concern, the government at the time did nothing.” The party — reported only by the Guardian — shows Cameron and Murdoch are now comfortably back in harness, “in this together”…
Photo: PA

Of Rupert Murdoch it said there was no evidence he’d behaved inappropriately.

But Ofcom also made it clear that it was working “on the evidence available to date”.

It added:

“As Ofcom’s duty to be satisfied that licensees remain fit and proper is ongoing, should further material evidence become available, Ofcom would need to consider that evidence in light of its duty.”

Since that statement an enormous amount of new material has come into the public domain.

Ofcom has confirmed it has not considered this evidence.

Press Gang has now asked it to do so …

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FOUR MONTHS after Ofcom published its findings, Lord Justice Leveson produced his report.

He was much more critical of the Murdoch family than Ofcom.

On the response of senior management to the phone hacking scandal, he noted:

” … the evidence … points to a serious failure of governance within the NoTW [News of the World], NI [News International] and News Corporation.”

The key point here is that Lord Leveson’s criticisms extended all the way to the top of the empire.

Leveson said:

“If News Corporation management, and in particular Rupert Murdoch, were aware of the allegations, it is obvious that action should have been taken to investigate them.”

“If News Corporation were not aware of the allegations which, as Rupert Murdoch has said, have cost the corporation many hundreds of millions of pounds, then there would appear to have been a significant failure in corporate governance …”

A SERIOUS FAILURE OF GOVERNANCE LORD JUSTICE LEVESON took a long, hard look at the Murdoch empire — and wasn't impressed by what he saw. But his report is just half of the exercise — when David Cameron announced the inquiry back in July 2011 he said it would take place in two parts. The second part, to be held after all the criminal trials are over, "will examine the extent of unlawful or improper conduct at the News of the World and other newspapers, and the way in which management failures may have allowed it to happen." Although almost all cases have now been heard, Cameron is using the fact that a few are still in the pipeline to delay making an announcement. Rupert Murdoch is desperate to make sure it does not happen ... Photo: PA

A SERIOUS FAILURE OF GOVERNANCE
LORD JUSTICE LEVESON took a long, hard look at the Murdoch empire — and didn’t like what he saw. But his report is just half of the exercise — when David Cameron announced the inquiry back in July 2011 he said it would take place in two parts. The second part, to be held after all the criminal trials are over, “will examine the extent of unlawful or improper conduct at the News of the World and other newspapers, and the way in which management failures may have allowed it to happen.” Although almost all cases have now been heard, Cameron is using the fact that a few are still in the pipeline to delay making an announcement. Rupert Murdoch is desperate to make sure it does not happen …
Photo: PA

Leveson examined one of the key issues of the phone hacking saga.

This was the meeting in June 2008 where James Murdoch met with News International’s legal manager Tom Crone to discuss legal action taken by hacking victim Gordon Taylor, chief executive of the Professional Footballers Association.

Taylor’s lawyers had obtained a devastating document — the celebrated “for Neville” email — which contained transcripts of 35 voicemail messages.

Tom Crone took this email to the meeting — and told James Murdoch it shattered the company’s public insistence that phone hacking was restricted to just one “rogue reporter”.

James Murdoch denied Crone told him this.

Murdoch agreed to settle the case for the colossal sum of £425,000 providing Taylor agreed to keep it confidential.

When Ofcom examined this issue, it concluded Crone’s evidence was not:

” … sufficient to demonstrate that James Murdoch was made fully aware of the implications of the evidence disclosed in the Taylor litigation at the time he authorised the payment.”

Lord Justice Leveson took a different view.

On the conflict between James Murdoch and Tom Crone he said:

“I … conclude that Mr Crone’s version of events as to what occurred on 10 June 2008 should be preferred to that of James Murdoch.”

This is just one dramatic part of the Leveson Inquiry that Ofcom should consider.

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WHEN OFCOM examined the fitness of Rupert Murdoch and his family back in 2012, its emphasis was on the phone hacking saga at the News of the World.

It wasn’t able to examine the corruption scandal which erupted in 2011 when News International handed over emails implicating scores of Sun journalists.

The result was Operation Elveden — the Metropolitan Police investigation into the bribing of public officials.

Many Sun journalists had been arrested but the sub judice rules prevented Ofcom from considering the issue in 2012.

In the years that followed, Elveden saw many public employees — including police officers and prison warders — convicted.

Almost all of the Sun journalists were cleared by juries.

SCARLET WOMAN AFTER FOUR years in the wilderness, Rebekah Brooks is back in charge of Rupert Murdoch's British newspapers. Back in 2011 — a week after it was revealed the News of the World had hacked the phone of the murdered teenager Milly Dowler — Rupert Murdoch was asked what his priority was. "This one", he said, pointing to Brooks. She was later arrested and charged but was cleared by a jury at the Old Bailey in 2014. During the trial, it was revealed that during her marriage to the actor Ross Kemp, she'd had a secret affair with Andy Coulson ... Photo: PA

SCARLET WOMAN
AFTER FOUR years in the wilderness, Rebekah Brooks is back in charge of Rupert Murdoch’s British newspapers. Back in 2011 — a week after it was revealed the News of the World had hacked the phone of the murdered teenager Milly Dowler — Rupert Murdoch was asked what his priority was. “This one”, he said, pointing to Brooks. She was later arrested and charged but was cleared by a jury at the Old Bailey in 2014. During the trial, it was revealed that during her marriage to the actor Ross Kemp, she’d had a secret affair with Andy Coulson …
Photo: PA

Operation Elveden points to the Murdoch family tolerating a culture of paying corrupt public officials at both the News of the World and the Sun.

This culture was long-standing.

The practice was extensive — four public employees alone were paid a total of £146,000.

In 2004, press reports show the Sun paid sources £362,000 — an unspecified but clearly significant amount going to corrupt public employees.

Rebekah Brooks, Sun editor from 2003 to 2009, admitted at a Culture Media and Sport select committee hearing in 2003 that she had paid police officers for information.

Sitting at her side, News of the World editor Andy Coulson broke in to say they only did so “within the law”.

Chris Bryant MP told them paying police was unlawful.

Despite this clear warning, the Sun went on paying corrupt police officers for another eight years.

One of these was Surrey police detective Simon Quinn.

He’d been on the paper’s books since 2000 — and had supplied confidential information about the Milly Dowler case in 2002.

Quinn was later gaoled for 18 months after admitting taking £7,000 from the paper over a ten year period.

Press Gang has asked Ofcom to examine the implications of this scandal.

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IN ITS 2012 report, Ofcom considered Rupert Murdoch’s role in the “dark arts” saga.

“We do not consider that the evidence currently available to Ofcom provides a reasonable basis on which to conclude that Rupert Murdoch acted in a way that was inappropriate in relation to phone hacking, concealment or corruption by employees of … News International.”

Again, new evidence has since emerged which undermines that conclusion.

Two days after the hacking scandal erupted, in July 2011, Rupert Murdoch made a statement:

“Recent allegations of phone hacking and making payments to police with respect to the News of the World are deplorable and unacceptable.”

This was his public, penitent face.

DEPLORABLE AND UNACCEPTABLE THOSE WERE the words Rupert Murdoch used when the news hacking scandal broke in 2011. But the media mogul has a habit of saying one thing in public — and another in private. In 2013 he was recorded telling a private meeting of Sun journalists that, well, after all, paying cops was part of the general culture of Fleet Street ... Photo: PA

DEPLORABLE AND UNACCEPTABLE
THOSE WERE the words Rupert Murdoch used when the news hacking scandal broke in 2011. But the media mogul has a habit of saying one thing in public — and another in private. In 2013 he was recorded telling a private meeting of Sun journalists that, well, after all, paying police was just part of the general culture of Fleet Street …
Photo: PA

But he also knew News Corporation — worried about corporate charges that might destroy the business — had just handed over a huge cache of emails incriminating Sun journalists.

There was no mention of this in his statement.

In March 2013 he agreed to meet Sun journalists.

Morale at the paper was at rock bottom: many journalists felt colleagues had been thrown to the wolves.

The meeting was recorded by one of the reporters.

In a discussion about the possibility of Sun journalists being charged for paying public officials, Murdoch said:

” … I don’t know of anybody, or anything, that did anything that wasn’t being done across Fleet Street and wasn’t the culture.”

Another journalist said:

“You referred to, you used the phrase, things were done at the Sun for over 40 years. I personally have been here for less than ten. But I’m pretty confident that the working practices I’ve seen here were ones that I’ve inherited, rather than instigated.”

He asked:

“Would you recognise that all this pre-dates many of our involvement here?”

Murdoch’s reply couldn’t have been clearer:

“We’re talking about payments for news tips from cops: that’s been going on a hundred years.”

“You didn’t instigate it.”

Rupert Murdoch not only knew police officers were being paid by his journalists.

He approved of it.

♦♦♦

IF OFCOM launches an inquiry, it will be a major blow to Rupert Murdoch’s plans.

Any investigation will take months, if not years.

It will be impossible for Murdoch to launch a bid to buy the remaining 61 per cent of Sky he does not own while it’s taking place.

How can David Cameron’s government agree to his complete takeover if Ofcom is considering whether Murdoch is a “fit and proper” person to be involved in the broadcaster at all?

Press Gang has promised to submit a full statement to Ofcom.

This will include all of the material which has emerged since Ofcom’s report in 2012.

It will also seek to widen the scope of any Ofcom investigation to the Sunday Times where there have also been allegations of illegal news-gathering.

It will also include new criticisms of Murdoch’s own internal watchdog — the Management and Standards Committee (MSC).

In 2012 Press Gang warned the committee that serious problems still existed in the company.

The MSC ignored the warning.

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If you want to support The People v Murdoch campaign, click on the donate button below to make a contribution to Press Gang.

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NEXT The People v Murdoch examines the possibility of a private prosecution against Rupert Murdoch.

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CORRECTIONS Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

A SLICKER FULL OF LIES

November 4, 2015

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THE CLOSEST Piers Morgan has come to standing in the dock was in 2000.

He was editor of the Daily Mirror.

The government launched an investigation after he made huge profits from shares tipped by the paper.

Two of his journalists were sacked and later convicted of manipulating the stock market.

One of them went to gaol.

Piers Morgan was not charged.

An internal inquiry by Mirror owners Trinity Mirror cleared him of any “impropriety or wrong-doing”.

The Press Complaints Commission “severely censured” Morgan.

But Mirror directors suppressed key material.

This corporate cover-up continues to this day.

It involves the paper instructing lawyers to deliberately mislead the Leveson Inquiry.

This is the first time the full story has been told … 

♦♦♦

FOR PIERS MORGAN the nightmare began one evening in February 2000. 

It was Tuesday, February 1.

That day he’d had a secret meeting with Arsenal Football Club about becoming the club’s managing director.

“But they couldn’t afford me,” he said.

This was followed by management meetings. 

He arrived back at his 22nd floor office in Canary Wharf at 7pm.

His secretary Kerrie Buckley told him the Daily Telegraph had left a message.

Business reporter Suzy Jagger had a question for Morgan:

“Did you buy shares in Viglen Technology through Kyte Securities on 17 January?”

In his 2005 memoirs, The Insider, Morgan remembers: 

“I froze to the spot”. 

He had indeed bought shares in Viglen — a company owned by Amstrad boss Alan Sugar — on that day.

It was also the day the Daily Mirror business column, City Slickers, were preparing an exclusive story about Viglen starting an internet business. 

The article made the company its tip of the day: 

“We expect the price, which closed last night at 180p, to double in a very short time,” it said.

“Get in quick for the pay-day of a lifetime.” 

The next day, 18 January 2000, the shares doubled in value — from 180 pence to 366 pence. 

TIPPING POINT THE INFAMOUS column of 17 January 2000 sparked a scandal for the Daily Mirror that remains a toxic legacy of Piers Morgan’s editorship. City Slickers was the brainchild of Piers Morgan and former Sun editor Kelvin MacKenzie who was a Mirror executive. Launched in May 1998 with a “ cheeky irreverent style”, it was soon riding the dotcom boom of the late 1990s. The share price of the column’s top ten tips for 1999 rose by 142 per cent.

TIPPING POINT
THE INFAMOUS column of 17 January 2000 sparked a scandal for the Daily Mirror that remains a toxic legacy of Piers Morgan’s editorship. City Slickers was the brainchild of Piers Morgan and Mirror executive — and former Sun editor — Kelvin MacKenzie. Launched in May 1998 with a “ cheeky irreverent style”, it was soon riding the dotcom boom of the late 1990s. The share price of the column’s top ten tips for 1999 rose by 142 per cent.

His secretary asked if he was OK.

“Well, I’m not sure, to be honest,” Morgan told her. 

“I bought some bloody shares a few weeks ago, and I think it’s about to crash around my ears.”

Morgan rang Jagger back and admitted he’d bought some shares. 

“Better to be open and up front in situations like these,” he wrote.

He also “called the Mirror lawyers and talked them through it all.” 

At 11pm that evening he saw the first editions of the Daily Telegraph which carried his admission that he’d bought £20,000 worth of Viglen shares.

Morgan was relieved: 

“… there was just a small, balanced story on a left-hand inside page.”

“I wasn’t too worried when I saw it: if they’d really thought I’d done something awful, it would have been on the front.”

But the Sun also saw the Telegraph piece.

It changed its later editions, putting the story on the front page  — and carried an editorial calling for Morgan’s resignation.

The next day directors of Trinity Mirror, owners of the Daily Mirror, were getting involved.

They called Morgan down to the executive offices on the 20th floor of the Canary Wharf tower block. 

He told John Allwod, deputy chief executive, he had no idea the City Slickers were going to tip the company.

Morgan said he’d only bought a small number of shares tipped by the City Slickers.

In all, he’d only bought shares on about twenty occasions: 

“ … and made hardly any money on anything”. 

The law firm Lovells were brought in to help the board with its investigation. 

Emails between Piers Morgan, his broker and the City Slickers were examined. 

Anil Bhoyrul and James Hipwell, the two journalists who wrote the City Slickers column, were questioned.

They said Piers Morgan didn’t know about the Viglen article. 

The investigation took just two days.

On February 4 Trinity Mirror issued a statement to the Stock Exchange saying that an internal investigation had taken place.

“The findings of this inquiry … supported by the group’s solicitors Lovells … show there are no grounds for any accusations of any impropriety or wrong-doing by Piers Morgan.” 

Morgan sold his shares and donated the profits to charity. 

♦♦♦

BUT THE crisis wouldn’t go away.

The Department of Trade & Industry announced an investigation and the Press Complaints Commission launched an inquiry.

On February 17, a month after the Viglen article was published, the City Slickers Anil Bhoyrul and James Hipwell were sacked for gross misconduct.

“A decision I was not allowed to take any part in,” Morgan later wrote, “but everyone will think I did to save my own scrawny neck”.

“I can sense a certain frostiness among some of the staff, and there are even rumours that some senior journalists are planning a vote of no confidence in me”.

MORGAN THE SLICKER PIERS MORGAN was a greedy editor. On one occasion he emailed Bhoyrul to congratulate him on a piece about a major City figure getting involved in Formula One motor racing. “

MORGAN THE SLICKER
PIERS MORGAN was an avid follower of the City Slickers. On one occasion he emailed Anil Bhoyrul to say “I need some ideas for my general Pep, which is bursting with profit from NXT [a share tipped by the column]. Got any good longer term suggestions for this year?” He also emailed Bhoyrul to congratulate him on a piece about a major City figure getting involved in Formula One motor racing. “”Great story. Does this mean free tickets to the grand prix all round?” Bhoyrul replied: “I already have free tickets to all grand prix.” Morgan replied: “You did, Anil, you did .”
Photo: PA

There was no rebellion.

But the strain was affecting Morgan.

At the Press Gazette awards in March 2000 he got drunk and lost his temper with the team from the Sun.

“Then one of the Sun lot, quite understandably, threw a punch at me, which missed, and all hell broke out — with journalists from the Mirror and the Sun trading shoves, slaps, kicks and abuse.”

The Press Complaints Commission (PCC) completed its investigation in May 2000.

Unusually, its rules about financial reporting are more stringent than the criminal law.

Clause 14 of its Editors’ Code of Practice was clear:

“ … although it may not be illegal for journalists to buy shares about which they have recently written or are about to write, such purchases are forbidden by the Code.”

It heard from the senior of the two City Slickers, Anil Bhoyrul.

Bhoyrul had originally told the Trinity Mirror inquiry he had not informed Piers Morgan that the column was about to tip Viglen on January 17.

Now he changed his version of events.

He claimed he’d informed Morgan of the piece on the morning of January 17— and said Morgan later told him he’d purchased shares in the company.

Bhoyrul also confirmed he’d bought shares on at least six occasions which the column had tipped.

James Hipwell admitting 25 such purchases.

Morgan insisted his purchase of the Viglen shares was coincidental — he bought them several hours before the article tipping the company was written.

He didn’t tell the City Slickers he’d bought them.

There was, he said, a general buzz about the company and it was one of the City Slickers’ top ten tips for 2000.

There had been job adverts which indicated that an internet division was being planned.

A relative — a wealthy and apparently successful private investor — thought it a good company.

In an attempt to distance himself from the column, Morgan also claimed he’d had concerns about journalist James Hipwell.

He said he’d been tipped off that the journalist was “being investigated in respect of share dealings”.

Morgan claimed he discussed this with Bhoyrul in June 1999 and personally warned Hipwell not to buy shares in companies the column was tipping.

Bhoyrul and Hipwell denied Morgan had talked to them about this.

No evidence has ever emerged to back up Morgan’s assertion.

In May 2000 the Press Complaints Commission announced its findings.

It issued a “critical adjudication” which “severely censured” Piers Morgan and the City Slickers.

This was the most serious judgment it could make.

(It was the second time Piers Morgan had been censured — the first was in 1995 when he was editor of the News of the World.

See the Press Gang article Whodunnit? for more details.)

The Commission found Morgan had breached Clause 14.

He had bought shares in Viglen and another company.

The PCC did not consider it necessary to decide if he had known the Viglen shares were going to be tipped.

As editor, Morgan had also allowed the City Slickers to engage in “flagrant, multiple breaches of the code over a sustained period of time.”

Morgan had therefore “fallen short of the high professional standards demanded by the code”.

PCC chairman, Lord Wakeham, said there was a “clear climate of slack” at the paper.

The watchdog referred the matter to Philip Graf, Trinity Mirror’s chief executive, “in view of the unsatisfactory state of affairs revealed by this episode.”

According to the PCC, Trinity Mirror issued a “severe reprimand” to Morgan and a “written warning” about his management of the paper.

The PCC congratulated itself:

“This is an example of where the provisions of a tough industry Code are more onerous than the law and an example of the strength of effective self-regulation.”

There were no financial penalties, however.

Naturally, the Sun made the most of the ruling — its editorial verdict on Morgan:

“A lying spiv.”

♦♦♦

SIX MONTHS after the Commission’s ruling, the scandal erupted again. 

On 12 November 2000 the newspaper Sunday Business (it closed in 2006) published emails exchanged between Morgan and Bhoyrul.

The emails — also highlighted in other papers — had been deleted.

But inspectors from the Department of Trade & Industry were able to recover them from Trinity Mirror’s central servers.

One was sent by Morgan to Bhoyrul at 4.33pm on the afternoon of 17 January 2000 — the day he bought the Viglen shares.

KILLER EMAIL THE EXPLOSIVE Sunday Business article which gave the lie to Morgan’s claim that he had not told the City Slickers he’d bought shares in Viglen. The paper obtained an email from a source in the Department of Trade and Industry which was investigating Morgan. It showed Morgan discussing Viglen with one of the City Slickers before the paper went to press — and suggested he had also talked about the company before he bought shares …

KILLER EMAIL
THE EXPLOSIVE Sunday Business front page article which gave the lie to Morgan’s claim that he had not told the City Slickers he’d bought shares in Viglen. The paper obtained an email from a source in the Department of Trade and Industry which was investigating Morgan. It suggested Morgan discussed Viglen with one of the City Slickers before the article went to press …

Earlier that day, Bhoyrul claimed he’d urged Morgan to sell shares he held in a company called Pace Micro Technology — and invest the proceeds in Viglen.

He said Morgan told him he would buy into Viglen but keep the Pace shares.

After seeing the Pace shares rise, Bhoyrul said he e-mailed Morgan congratulating him on his decision to keep his stake.

Morgan sent a message back — at 4.33pm on the day he bought the shares — saying that he’d sold the Pace shares after all.

This crucial 10 word message reads:

“I sold them this morning for bloody Viglen. Congratulations halfwit.”

Bhoyrul told Sunday Business:

“I said I had an e-mail from Piers about Viglen that day, but it disappeared when I tried to recover it after I was sacked.”

“If it’s turned up, that’s very serious as the Mirror accused me of lying about it.”

Bhoyrul added:

“The Press Complaints Commission may have to look at this again.”

PCC director Guy Black played down the possibility of any new inquiry on the basis of the emails.

He said the Press Complaints Commission had never needed to consider the e-mails between Morgan and Bhoyrul as it was already clear the code had been breached.

“We haven’t been given any of this new evidence yet but a breach of the code is a breach of the code,” he said.

“The Commission found him guilty in the first place.”

“The existence of e-mails may add icing to the cake but it unlikely to change our decision.”

A Trinity Mirror spokesman claimed that the company had known about the e-mails for some time.

“We had a full investigation and nothing new has come to light that leads us to change our minds,” he said.

The PCC did not re-open the investigation.

At the time Morgan declined to comment.

When one reporter rang him, Morgan said “goodbye, mate” and hung up.

By the end of the 2000, it was clear Morgan had weathered the storm.

In April 2001 he signed a new contract — and became editor in chief of the Sunday Mirror as well as the Daily Mirror.

♦♦♦

IT TOOK the Department of Trade & Industry (DTI) four years to complete its investigation.

It investigated Morgan because it suspected insider trading.

Insider trading is when employees of companies leak confidential information to outsiders so that shares can be bought before the price goes up.

Viglen was one of the companies investigated.

The shares had doubled as soon as the City Slickers tipped them.

It would later emerge that the Financial Services Authority had — secretly — censured Viglen for not declaring its intention to launch an internet “without delay”.

The rules of the Stock Exchange say price sensitive information should be announced via its own news service.

DTI inspectors interviewed Piers Morgan on several occasions but, in the end, could find no evidence of insider trading either in Viglen or any of the other shares he had bought.

It decided not to prosecute.

City Slickers Anil Bhoyrul and James Hipwell were charged along with a private investor with another offence — market manipulation under the Financial Services Act.

They had

“conspired to create a misleading impression as to the value of investments for the purpose of creating the impression and thereby inducing other persons to acquire those investments, by using the City Slickers column in the Daily Mirror to tip those investments.”

The prosecution case was that they operated a “first buy, then tip, then sell” policy.

Many of the shares they made a killing on subsequently dropped in value — thus cheating ordinary investors who’d followed the tips.

Ironically, the Viglen investments were not part of the prosecution.

Bhoyrul pleaded guilty — but Hipwell and the investor decided to fight the case.

JAMES HIPWELL THE CITY SLICKER'S decision to plead not guilty led to most of the story finally seeing the light of day. By the time he was sentenced to six months in gaol, he’d had a kidney transplant. Photo: PA

JAMES HIPWELL
THE CITY SLICKER’S decision to plead not guilty led to most of the story finally seeing the light of day. By the time he was sentenced to six months in gaol, he’d had a kidney transplant.
Photo: PA

It was this decision that, finally, brought a fuller version of the scandal into the open.

The trial started at Southwark Crown Court in London in October 2005.

(By then Piers Morgan was no longer Mirror editor.

He’d been sacked in May 2004 after he published photos of British soldiers abusing prisoners in Iraq which turned out to be fakes.)

The prosecution said Hipwell made a profit of £41,000 buying and selling shares that were tipped between August 1999 and February 2000.

Bhoyrul made £15,000 in the same period.

Hipwell said he made no secret of his trading and bought shares in his own name.

In the witness box, he said Piers Morgan told him:

“ … if we were in the business of tipping shares he was happy for us to trade and even used the analogy along the lines of you would not learn to drive a car from somebody who had never been in a car.”

To back up his version of events, the defence was to make a series of sensational revelations.

The thrust of these was that there had been a deliberate cover-up by Morgan and directors of Trinity Mirror.

♦♦♦

THE FIRST bombshell was that Morgan and Trinity Mirror had not been telling the truth about the extent of Morgan’s dealing in Viglen shares. 

For nearly five years it was believed Morgan had only bought £20,000 worth of shares.

In fact, the figure was more than three times greater — £67,000.

Morgan had said that he bought the shares on a whim.

In fact, he spent a considerable amount of time and effort in acquiring the shares on 17 January 2000.

Hipwell’s barrister spelt it out:

12.33pm
Morgan arranges for the purchase of 6,884 Viglen shares worth £12,805 through his then wife Marion’s tax-free private equity plan (PEP).

12.45pm
Twelve minutes later, Morgan uses his own PEP to buy a further 19,632 shares worth £36,074.

3.28pm
Morgan rings his broker Antony Laiker at stockbrokers Kyte Securities and buys a final block of 10,000 shares worth £18,275.

This is nine minutes after the Mirror’s editorial computer records Anil Bhoyrul filing the Viglen piece — at 3.19pm.

Morgan’s final purchase is made through a nominee account, a legal device which hides the identity of the purchaser.

It is this last purchase which generates the original tip-off — probably from someone inside Kyte Securities — that Morgan had bought £20,000 worth of shares in the company.

Reporters in court were shocked by this revelation.

It was quickly followed by another.

It was revealed that other journalists had also bought shares in Viglen on the same day: business editor Clinton Manning, news editor David Leigh and reporter Ian Miller.

And other senior figures had bought other shares later tipped by the City Slickers.

They included deputy editor Tina Weaver and the paper’s lawyer Martin Cruddace.

Cruddace is a close friend of Piers Morgan.

In 2010, Morgan wrote of Cruddace:

“A finer, more loyal, trusted colleague and friend it would be impossible to find.”

GAMBLING MAN MARTIN CRUDDACE, the Daily Mirror’s legal manager during the City Slickers scandal, is one of Piers Morgan’s closest friends. In 1999 he organised a syndicate with Piers Morgan and James Hipwell to buy stakes in a racehorse called Ledham. When Morgan was kicked out by his wife in 2000 — after he started an affair with Sun journalist Marina Hyde — Cruddace put him up in his London flat. Cruddace left the Mirror in 2002 and has worked in the gambling industry ever since. Photo: Betfair

GAMBLING MAN
MARTIN CRUDDACE, the Daily Mirror legal manager during the City Slickers scandal, is one of Piers Morgan’s best friends. In 1999 he organised a syndicate with Piers Morgan and James Hipwell to buy a racehorse called Ledham. When Morgan was kicked out by his wife in 2000 — after he started an affair with Sun journalist Marina Hyde — Cruddace put him up in his London flat. Cruddace left the Mirror in 2002 and has worked in the gambling industry ever since.
Photo: Betfair

It was the lawyer’s job to advise Morgan about libel and the Press Complaints Commission’s Editors’ Code.

He also took a close interest in the City Slickers column after the industrialist Victor Kiam sued the Mirror in 1999.

Kiam was later awarded more than £100,000 in damages.

Cruddace also invested £6,500 in several companies — but not Viglen — before they were tipped by the City Slickers.

His mother, his girlfriend and her father also bought shares in some of these firms.

Cruddace told the jury he “regretted” the purchases but insisted it was a “coincidence” they were later tipped by the Slickers.

In his evidence Hipwell claimed he’d asked Cruddace if the column should carry a warning that the City Slickers held shares in some of the companies they were tipping.

He says Cruddace told him it wasn’t appropriate.

Cruddace said he couldn’t remember the conversation but accepted it might have taken place.

At the trial Hipwell also alleged that Cruddace — and deputy editor Tina Weaver — put pressure on him to protect Morgan.

Both denied this allegation.

The jury also heard the transcript of a phone call between Anil Bhoyrul and his broker Richard Grossman of stockbrokers Redmayne Bentley.

Grossman also acted for Hipwell.

Bhoyrul was concerned about buying shares that he and Hipwell were tipping.

“We have been sort of been asking our people at the Mirror …”, he said, “When we tip something, if we have shares in something, is it a problem?”

Grossman replied:

“It’s all to do with something called morality …”

“As far as the law is concerned, I am very surprised your company doesn’t have rules on it.”

Grossman admitted he and other Redmayne Bentley employees also bought shares tipped by the City Slickers but denied the purchases were influenced by the column.

Once again, it was just coincidence …

♦♦♦

THERE WAS another dramatic development when a statement from public relations man Nick Hewer was read out.

Hewer — later to become famous as one of Alan Sugar’s advisers on the television programme The Apprentice — represented Viglen in 2000.

Hewer said that on the day Morgan bought his shares Bhoyrul rang him for a quote for the Viglen story.

After the storm broke in February, he rang him again.

Hewer said Bhoyrul:

“explained that Piers was in trouble and that we needed to help him.”

Hewer was asked to tell the law firm Lovells, who were helping Trinity Mirror executives with their investigation, that the call from Bhoyrul on January 17 came much later than it actually had.

This would show that Bhoyrul wrote the Viglen article late on January 17 — long after Morgan bought his last batch of shares in the company.

“I explained I was unable to help as all the facts were locked in a letter to the Stock Exchange from Viglen,” Hewer wrote.

“This suggestion placed me in a difficult position …”

“My living was to deal with these people and I again explained I could not be pressured into saying anything.”

The statement also revealed that Hewer subsequently spoke personally to Piers Morgan.

They discussed the timing of Bhoyrul’s phone call and Morgan suggested it would be “helpful if the time of the clearance quote could be pushed back from the time it was actually made.”

Hewer told Morgan he was not prepared to lie — but agreed to say the call was made “late in the afternoon”.

(Morgan denies this allegation.

He told Press Gazette after the trial that it was “absolutely cock and bull rubbish”.

“I never asked Nick Hewer to lie.”)

Solicitor Graham Livingston, who carried out the Lovells inquiry into the scandal on behalf of Trinity Mirror, was questioned about Hewer’s testimony when he gave evidence.

He was asked if he would have cleared Morgan of “impropriety or wrong-doing” if he’d known that Hewer had been asked to lie.

Livingston said he would not.

TWO FACED? PIERS MORGAN says Nick Hewer — now the presenter of Channel 4’s Countdown programme — is lying when he claims the former Mirror editor asked him to lie on his behalf ... Photo: PA

TWO FACED?
PIERS MORGAN says Nick Hewer — now the presenter of Channel 4’s Countdown programme — is lying when he claims the former Mirror editor asked him to lie on his behalf …
Photo: PA

It was during the trial that the fact that the Financial Services Authority had censured Viglen for not declaring its decision to launch an internet site “without delay” was revealed.

The criticism had never been made public.

Hipwell’s defence was that he was open about his share dealing — and only did so because Piers Morgan and other senior reporters and executives were also doing it.

The jury wasn’t impressed — and he and the private investor were convicted.

He was sentenced to six months in prison.

Mr Justice Beatson said the sentence would have been longer had Hipwell not been suffering from kidney failure.

And he added:

“There was no guidance from your superiors or from in-house lawyers, and there was evidence of a culture of advance information about tips — and share dealing in the office.”

“I also take into account the fact there was no formal code of conduct for journalists at the Daily Mirror.”

The private investor was gaoled for three months.

Anil Bhoyrul, who admitted the offence, was ordered to serve 180 hours of community service.

♦♦♦

THE TRIAL was an eye-opener for Roy Greenslade, former Mirror editor turned media commentator.

He felt the Press Complaints Commission had been conned by Piers Morgan and Trinity Mirror back in 2000 into believing he’d only purchased £20,000 worth of Viglen shares.

Greenslade believed several Trinity Mirror executives had conspired to give false evidence to the Commission.

Morgan, he thought, would have found it difficult to survive as Mirror editor if the true scale of his dealings in Viglen had been known.

He asked the Commission to reinvestigate.

ROY GREENSLADE THE MEDIA commentator — and a former Daily Mirror editor — was shocked by the revelations which emerged during the City Slickers trial in 2005. He believed Piers Morgan and the Mirror had deliberately deceived the Press Complaints Commission back in 2000. Photo: Roy Greenslade

ROY GREENSLADE
THE MEDIA commentator — and former Daily Mirror editor — was shocked by the revelations which emerged during the City Slickers trial in 2005. He believed Piers Morgan and Mirror directors had deliberately deceived the Press Complaints Commission back in 2000.
Photo: Roy Greenslade

The PCC asked Trinity Mirror to explain why it had suppressed the full value of Morgan’s Viglen purchases.

The PCC reported that the company

“told the Commission it almost became a touchstone of the veracity of Messrs Bhoyrul and Hipwell as to whether they could show independent knowledge of the total of £67,000.”

Directors decided to hold back the total amount involved.

As a result, it had sent the Commission an edited version of the report prepared by the law firm Lovells.

The Commission “considered the logic” behind the company’s strategy “weak”:

“… it was a matter of regret” that the company had “for whatever reason — submitted a partial account of Mr Morgan’s share dealings to the Commission which had the effect of misleading it.”

The Commission also criticised the company for not issuing a statement after the trial explaining why it had suppressed the true amount of Morgan’s Viglen holdings.

But it had “not found evidence to suggest that directors … had conspired to present untruthful evidence to … protect Mr Morgan and to minimise the Commission’s criticisms.”

Roy Greenslade told Press Gang he was convinced the Commission — had it known the full facts — would have issued “an even harsher judgment than it did”:

“In the PCC’s previous verdict against Morgan, over a breach of the Code when he was editor of the News of the World, the chairman had prevailed on the paper’s owner, Rupert Murdoch, to admonish him in public.”

“The PCC could have done that over the Viglen affair too and that would have placed the Trinity Mirror board under pressure to fire him.”

He was certain Trinity Mirror management had been

“… complicit in allowing Morgan to escape the appropriate PCC censure.”

One key fact was left out of the Commission’s consideration — the “killer email” Morgan sent to Bhoyrul at 4.33pm on the day he bought his shares.

♦♦♦

IT TOOK five years before the inside story of the City Slickers scandal finally saw the light of day.

But Trinity Mirror continues to deny key elements of it to this day.

David Seymour — political editor of the Mirror newspapers from 1993 to 2007 — made a statement to the Leveson Inquiry in 2012.

He said he had openly expressed concern about the City Slickers long before the scandal broke.

Of the Viglen affair he wrote:

“There was, in my view, a ‘killer email’ showing conclusively that the editor knew what was going on.”

This is a reference to the 4.33pm email Piers Morgan sent Anil Bhoyrul on 17 January 2000.

Trinity Mirror instructed the law firm Herbert Smith to contest this allegation.

In a letter to the Inquiry, Herbert Smith stated:

“Mr Seymour’s allegation … that there was a ’killer email showing conclusively’ that former editor of the Daily Mirror Piers Morgan ’knew what was going on’ in respect of the City Slickers matter, is wrong.”

KILLER EMAIL v URBAN MYTH THIS IS the email David Seymour believed proved Piers Morgan knew the City Slickers were going to tip the Viglen shares. It was published in the Sunday Business in November 2000. Trinity Mirror say it's an

KILLER EMAIL v URBAN MYTH
THE EMAIL former Mirror political editor David Seymour believes proved Piers Morgan knew the City Slickers were going to tip the Viglen shares was reproduced in the Sunday Business in November 2000. Trinity Mirror told the Leveson Inquiry the email was an “urban myth” …

“Trinity Mirror informs us that the existence of such an email was an ’urban myth’ during the City Slickers saga.”

“No such email was ever found despite a thorough investigation by the DTI — which included … the seizure of a number of personal computer hard drives including those of Messrs Morgan, Hipwell and Bhoyrul.”

This article has already shown that this ‘killer email’ — the 4.33pm  email Morgan sent to Anil Bhoyrul on the day of his Viglen share purchases — had been revealed in November 2000.

When Seymour wrote to the Inquiry to give further evidence about the email, he was told that there wasn’t time to add new material…

We asked Trinity Mirror for a comment.

Company secretary Jeremy Rhodes said:

“The contents of your email are noted.”

♦♦♦ 

ONE INTRIGUING question emerges out of this Press Gang investigation.

In 2000 Piers Morgan said he had sold his shares in Viglen — and donated the profits to charity.

MORALLY DEFUNCT AFTER THE trial of the City Slickers in 2005, Piers Morgan told the Independent on Sunday: “I fully accept that I’m a morally defunct human being.” At the height of the scandal, in 2000, he told actress Kate Winslet “ … you don’t get to be the editor of the Daily Mirror without being a fairly despicable human being.” Photo: PA

MORALLY DEFUNCT
AFTER THE trial of the City Slickers in 2005, Piers Morgan told the Independent on Sunday: “I fully accept that I’m a morally defunct human being.” At the height of the scandal, in 2000, he also told actress Kate Winslet — in a conversation about her unlisted telephone number — “ … you don’t get to be the editor of the Daily Mirror without being a fairly despicable human being.”
Photo: PA

At that time, he was only admitting to owning £20,000 worth of shares.

But he and his wife actually owned £67,000 worth.

So did he donate just the profits from the £20,000 block — or did it also include the proceeds of the entire £67,000 investment?

We put this to Piers Morgan this morning.

There was no answer by the time this piece was published.

♦♦♦

NOTE
This is the fifth instalment of the series A Pretty Despicable Man.
Already published are
Dial M For Morgan
Down In The Gutter
Assault On The Bank Of England
Whodunnit?
Click on a title to read the article.

♦♦♦
© Press Gang
Published: 4 November 2015
♦♦♦

COMING UP 
THE MIRROR: CRACK’D FROM SIDE TO SIDE
WHEN THE Daily Mirror started recruiting former Murdoch journalists — like Piers Morgan — it committed itself to the use of the “dark arts” as a way of competing with the Sun. The full extent of the moral corruption of one of Britain’s greatest newspapers is only just beginning to emerge. And yet an ostrich-like management continues to deny the full extent of the catastrophe. Part Six of A Pretty Despicable Man says it’s time the company cleaned out the stables once and for all … 

 ♦♦♦

JOIN THE GANGBUSTERS …
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CORRECTIONS Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

EXCLUSIVE — FAKE SHEIK CHARGED

September 29, 2015

THE SUN journalist Mazher Mahmood has been charged with conspiracy to pervert the course of justice.

FAKE SHEIK IN THE DOCK AFTER YEARS of being accused of lying on oath in criminal cases, Mazher Mahmood is to swop the witness box for the dock ... Photo: BBC

FAKE SHEIK IN THE DOCK
Photo: BBC

The decision follows a Scotland Yard investigation — Operation Silverhawk — and comes after the aborted trial of singer Tulisa Contostavlos in July 2014.

The singer’s prosecution followed a Sun on Sunday sting in June 2013.

After an elaborate operation, Mahmood and his team persuaded Tulisa to contact a friend who then supplied them with drugs.

Judge Alastair McCreath stopped the trial after Mahmood gave contradictory evidence about changes to a statement made by his driver Alan Smith.

Smith has also been charged with conspiracy to pervert the course of justice.

The two men will appear at Westminster Magistrates Court on October 30. 

In a statement issued through his solicitors Kingsley Napley, Mazher Mahmood said:

“I am deeply disappointed that, after a totally unjustified delay, the Crown Prosecution Service have today informed me that they have decided to charge me with conspiracy to pervert the course of justice. 

“I deny the offence. I will vigorously contest it at court. In the meantime I have nothing further to say.”

Nick Vamos, CPS Deputy Head of Special Crime, said:

“After carefully considering all of the evidence the CPS has decided that there is sufficient evidence for a realistic prospect of conviction and it is in the public interest to charge both men.”

“The decision comes after it was alleged that Mr Smith agreed with Mr Mahmood to change his statement to police as part of a trial in July 2014, and that Mr Mahmood then misled the court.”

“May I remind all concerned that both Mr Mahmood and Mr Smith have a right to a fair trial.”

“It is extremely important that there should be no reporting, commentary or sharing of information online which could in any way prejudice these proceedings.”

“For these reasons it would be inappropriate for any further comment.”

 ♦♦♦

COMING UP 
A SLICKER FULL OF LIES
THE STORY of Piers Morgan’s involvement in the “Slickergate Affair” of 2000 makes sobering reading. There’s evidence Morgan sacrificed two of his journalists to save his own skin — and that senior Mirror Group managers were in on the plot. The attempt to spin the truth of what happened even involved lying to Lord Leveson …  Part Fve of A Pretty Despicable Man tells the story of a deliberate corporate cover-up  … 

 ♦♦♦

JOIN THE GANGBUSTERS …
THERE’S A need for a trustworthy website to expose rogue reporters. Press Gang is that outlet — fearless and fair. Join us by becoming a gangbuster and help pay some of our expenses. Just hit the button …

Donate Button with Credit Cards

CORRECTIONS
Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY
If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

DIAL M FOR MORGAN

June 29, 2015

PIERS_MORGAN_part_4

FOR THE last four years Piers Morgan has been desperately trying to distance himself from the phone hacking scandal.

Twice he’s been interviewed under caution by detectives investigating phone hacking at the Daily Mirror when he was editor from 1995 to 2004.

Between 2001 and 2009 he made a series of incriminating statements widely interpreted as evidence he knew all about the practice.

Two of his protégés — Andy Coulson and Rebekah Brooks — have appeared in the dock at the Old Bailey.

Coulson went to gaol: Brooks was acquitted.

Morgan now insists he knew nothing:

“For the record … I have never hacked a phone, told anyone to hack a phone, or published any stories based on the hacking of a phone.”

But a Press Gang investigation reveals 

— as early as 1997, the Daily Mirror was paying for “confidential enquiries” about telephone numbers

— in 1998 the paper was openly hacking the mobile phones of senior politicians

— a year later it spent nearly £6,000 on illegally obtained print-outs of calls made on individual phones 

The evidence suggests the “dark arts” of illegal news-gathering — including phone hacking — were at the heart of Daily Mirror editorial policy when Morgan was editor. 

♦♦♦

WHEN HE appeared on Desert Island Discs in 2009, Piers Morgan was challenged about phone hacking.

Presenter Kirsty Young asked him about dealing with people who listened to phone messages.

“People who tap people’s phones … how did you feel about that?”

Morgan didn’t deny the allegation:

“I’m quite happy … to have to sit here defending all these things I used to get up to …”

“I make no pretence about the stuff we used to do.”

But after the revelation in July 2011 that Rupert Murdoch’s journalists had hacked murdered schoolgirl Milly Dowler’s mobile phone, he changed his tune.

BUGGERS PIERS MORGAN and his friends Rebekah Brooks and Andy Coulson at the height of their power in 2004. Morgan edited the Mirror, Brooks The Sun and Coulson the News of the World. All three tabloids were hacking phones at that stage. Coulson and Brooks — long-term on-off lovers — were tried at the Old Bailey in 2014. Brooks was acquitted but Coulson was gaoled for 18 months. Picture: Richard Young / REX

BUGGERS
PIERS MORGAN and his friends Rebekah Brooks and Andy Coulson at the height of their power in the early 2000s. Morgan edited the Mirror, Brooks the Sun and Coulson the News of the World. All three tabloids were hacking phones at that stage. Coulson and Brooks — long-term on-off lovers — were tried at the Old Bailey in 2014; Brooks was acquitted but Coulson was gaoled for 18 months. Piers Morgan was by far the most experienced of the three: he had been Coulson’s boss at the Sun’s show business column in the early 1990s and gave Rebekah Brooks her first big promotion while he was editor of the News of the World
Picture: Richard Young / REX

When the American Daily Beast website resurrected his Desert Island Discs comments in 2011, Morgan insisted:

“For the record … I have never hacked a phone, told anyone to hack a phone, or published any stories based on the hacking of a phone.”

But, in fact, the Daily Mirror had printed an article based on phone hacking more than a decade earlier.

It was just as mobile phones were taking off — and Piers Morgan had been Daily Mirror editor for more than two years.

Early in 1998 one of the paper’s journalists in Dublin realised it was possible to access messages left on the mobile phones of senior Irish politicians.

Reporter Karl Brophy — based at the Irish Parliament — proceeded to listen to messages left on the phone of the Irish leader, Taoiseach Bertie Ahern.

He also successfully listened to messages left on the phones of other Cabinet ministers.

Brophy’s article — published as an “Exclusive” on Saturday, 18 April 1998 — went into great detail about how phone messages could be hacked:

“The phone tap can be operated by anyone who knows the number of the mobile phone they wish to listen in to.”

The article explained that mobile phones were sold with a standard password for stored messages that most people never changed.

“That means that anyone can listen in to another person’s messages by simply phoning into their electronic mailbox and dialling the digits 0000.”

CAPTION THE FRONT page story proving the Daily Mirror knew how to hack phones as early as April 1998. Reporter Karl Brophy provided a blueprint on how to listen to messages left on mobile phones. The article did not appear in mainland editions of the paper …

SMOKING GUN
THE FRONT page story proving Piers Morgan’s Daily Mirror knew how to hack phones as early as April 1998. Reporter Karl Brophy provided a blueprint on how to listen to messages left on mobile phones. The article did not appear in mainland editions of the paper …

“Once they have done this the hacker has unlimited access to all the messages.”

The article was accompanied by an editorial.

This stated:

“If Richard Nixon had lived in Dublin he would have had no need for Watergate.”

“Instead of teams of bungling burglars all he would have needed was a mobile phone to tap into the thoughts of his political rivals.”

The piece continued:

“The Irish Mirror discovered this amazing security breach and chose not to keep it under wraps.”

“It is to be hoped the gap has been plugged before some unscrupulous eavesdropper has used it for sinister [purposes].”

There was to be no phone hacking scandal in Ireland. 

♦♦♦

NOT A word of the story appeared in the mainland editions of the Daily Mirror.

This was despite the fact that several million people of Irish descent live in Britain — thousands of them Daily Mirror readers.

And the implications of the story for the British political establishment were obvious.

If British mobile phones were anything like their Irish counterparts, there was a potential security problem.

There were also strong connections between the Irish edition and the paper’s headquarters in London’s Canary Wharf.

DOMINIC MOHAN THE SUN editor told Lord Leveson about the Irish Mirror phone hacking story in 2012. But the Inquiry team did not enter the article into evidence — and Piers Morgan was never questioned about it.

SNITCH
SUN EDITOR Dominic Mohan told Lord Leveson about the Irish Mirror story in 2012. But the Inquiry team failed to understand its significance and didn’t enter the article as evidence — Piers Morgan was never questioned about it.  Back in May 2002 Mohan was editor of the Sun’s “Bizarre” column when he sarcastically thanked Vodaphone’s lack of security for the success of Piers Morgan’s show business coverage in the Mirror Photo: PA

The man in charge of the Irish Mirror was Craig Mackenzie, brother of Kelvin Mackenzie, Mirror Group deputy chief executive.

Kelvin Mackenzie was editor of the Sun when Piers Morgan started on the paper in the late 1980s.

Both Mackenzie brothers were friends of Morgan’s. 

Press Gang spoke to Karl Brophy last week.

He said he wrote the story at a time when mobile phones were taking off.  

“When you got your phone in those days it clearly … told you to change your PIN immediately,” he said.

“The thing was that most older people didn’t bother.”

“So, one day, I just started phoning mobiles of politicians and seeing if they had changed their PINs.”  

“A lot hadn’t so I changed all the PINs of the ones who hadn’t to a single four digit number so nobody else could listen in.”

“I thought the fact that voice messages … of government ministers and advisers could be so easily accessed was rather serious – especially considering where we were in 1998 with the Peace Process …”

In fact, the historic Good Friday agreement had been signed a week earlier.

All the ministers Brophy hacked immediately changed their PIN numbers after he told the government what he’d done. 

♦♦♦

FIFTEEN MONTHS later the Daily Mirror in London were told about security problems with mobile phones.

Welsh sales manager Steven Nott rang the paper in August 1999 about a flaw in Vodaphone’s system.

He talked to Mirror special projects editor Oonagh Blackman. 

He told her that if people did not change the standard Vodaphone 3333 PIN number, anyone could dial in and listen to messages. 

Nott claims that, initially, Blackman was enthusiastic but after 12 days told him the paper wasn’t interested.

The paper later sent him a £100 cheque with a statement saying it was in relation to “mobile phone scandal.” 

Nott later told the Leveson Inquiry:

“I accused the Daily Mirror of keeping the phone hacking method for their own purposes.”

But, in addition to the Irish Mirror story, there’s evidence the paper’s journalists were already deeply involved in the “dark arts” of illegal news-gathering, including phone hacking.

♦♦♦

CENTRAL TO this operation was senior reporter Gary Jones and his dealings with a corrupt firm of private detectives.

Jones had been News of the World crime reporter when Piers Morgan edited the Sunday tabloid in 1994-1995. 

Jones won the Press Gazette Reporter of the Year award in 1995 for his scoops.

One of the most dramatic was a story about anonymous calls being made by Princess Diana.

This was also one of the key stories in Piers Morgan’s career — it impressed Rupert Murdoch who liked big, international controversies.

Especially if it also involved an attack on the British establishment he despised.

GARY “DARK ARTS” JONES THE SENIOR Daily Mirror journalist was the paper’s mastermind when it came to illegal news-gathering. He’d been the News of the World’s crime reporter when Piers Morgan edited the Sunday paper in 1994-1995. Jones — who has featured in many Press Gang articles —  does not answer our emails.  

GARY “DARK ARTS” JONES
A KEY LIEUTENANT throughout Piers Morgan’s editorship, Jones was the Mirror mastermind when it came to illegal news-gathering. He’d been the News of the World crime reporter when Piers Morgan edited the Sunday paper in 1994-1995. Jones — who has featured in many Press Gang articles —  does not answer our emails.

This worldwide exclusive was based on a leaked investigation report from Scotland Yard.

Press Gang — in the article Whodunnit? — revealed Piers Morgan almost certainly authorised an enormous payment to a recently retired senior police officer for access to the report.

The sum is believed to have been in the hundreds of thousands of pounds.

Piers Morgan was appointed Daily Mirror editor in 1995 and Gary Jones joined him the following year.

Documentary evidence shows that by October 1997 Gary Jones was responsible for organising much of the paper’s clandestine operations.

Jones was using the controversial detective agency Southern Investigations to illegally access information. 

The agency had also been working for the News of the World from the late 1980s — including the period Piers Morgan was editor.

The firm was run by private eye Jonathan Rees.

Rees had been a suspect in the murder of his partner Daniel Morgan in 1987.

JONATHAN REES THE PRIVATE eye who provided the Daily Mirror with a hoard of confidential information. He stood trial for the murder of his partner Daniel Morgan but the trial collapsed in 2011.  A fuller account of his activities can be found in the Press Gang series The No 1 Corrupt Detective Agency.  Photo: PA 

CORRUPT DETECTIVE
THE PRIVATE eye Jonathan Rees who provided the Daily Mirror with a hoard of confidential information, much of it obtained from bent police officers. He later stood trial for the murder of his partner Daniel Morgan but the case collapsed in 2011.  A fuller account of his activities can be found in the Press Gang series The No 1 Corrupt Detective Agency
Photo: PA

Daniel Morgan’s place as Rees’ partner was taken by former Scotland Yard detective sergeant Sid Fillery. 

Fillery had been part of the homicide team investigating the murder until his superiors realised he was a friend of Rees.

Southern Investigations provided Gary Jones and the Mirror with one scoop after another.

The evidence comes from a secret operation — Two Bridges — mounted by anti-corruption detectives at Scotland Yard.

They bugged the offices of Southern Investigations and, in September 1999, raided the firm and many of its network of informants. 

From the files generated by this operation, Press Gang has already shown that 

— in September 1998 phone hacking may have played a part in an exclusive about news presenter Kirsty Young’s new relationship with millionaire businessman Nick Young. In our story Down In The Gutter we showed that Southern Investigations followed Young over several days. The paper’s reluctance to publish the story straight away suggests the original source of the story may have come from phone hacking ,,,

KIRSTY YOUNG WHEN THE presenter interviewed Piers Morgan in 2009, he appeared to admit the Daily Mirror had been involved in phone hacking. What Young didn’t know is that she had been a target of the Daily Mirror in 1998 when she began a new relationship. The story may have resulted from phone hacking …  Photo: PA

KIRSTY YOUNG
WHEN THE Desert Island Discs presenter interviewed Piers Morgan in 2009, he appeared to admit the Daily Mirror had been involved in phone hacking. What Young didn’t know is that she’d been a target of Piers Morgan’s paper in 1998 when she began a new relationship. The story may have resulted from phone hacking … 
Photo: PA

— in October 1998 Gary Jones and Oonagh Blackman published an article revealing the confidential mortgage details of members of the committee which set interest rates. In our article Assault On The Bank Of England we showed that Southern Investigations had illegally “blagged” the information from banks and building societies. The firm sent one set of doctored invoices to the Daily Mirror accounts department but Press Gang obtained a confidential statement sent to Gary Jones marked “For Your Information Only” which reveals the true nature of the operation.

But this is just the tip of the iceberg.

Invoices generated by Southern Investigations were usually heavily disguised.

“Confidential enquiries” was the phrase used to cover up illegal activity ordered by Gary Jones on behalf of the Mirror.

Four of these invoices include parts of telephone numbers.

The first was in October 1997 — long before the Irish Mirror published its piece.

Southern Investigations was billing Jones for “confidential enquiries” relating to a telephone number showing just the dialling code 01480 (Huntingdon). 

In 1998 there were three more invoices — again with only part of the number given.

The sums involved — around £300 each — suggest these “confidential enquiries” involved print-outs of calls made from the numbers.

Southern Investigations had people inside phone companies who made copies of itemised phone calls.

Just how corrupt the relationship between Gary Jones and Jonathan Rees actually was is shown by a dramatic row which took place in July 1999. 

♦♦♦

IT’S TUESDAY, 6 July 1999 at the offices of Southern Investigations in Thornton Heath, South London.

Jonathan Rees is busy.

Some of his work is legitimate routine bread and butter stuff like serving writs and tracing people.

But increasingly his time is taken up with obtaining confidential information and selling it to newspapers like the News of the World and the Mirror Group. 

Unknown to him, every word he says today will be recorded.

A bug has been planted in the building by anti-corruption detectives from Scotland Yard as part of Operation Two Bridges.

Two Bridges has two aims.

One is to generate information about the murder of Daniel Morgan in 1987.

The second is part of an attempt to prevent Southern Investigations from corrupting police officers.

An internal Scotland Yard document — later leaked to the BBC Home Affairs correspondent Graeme McLagan — spelt out the concerns.

Rees — and his partner, ex Metropolitan Police detective Sid Fillery:

“.. are alert, cunning and devious individuals who have current knowledge of investigative methods and techniques which may be used against them.”

SID FILLERY THE FORMER Scotland Yard detective — charged with perverting the course of justice in connection with the murder of Daniel —  was discharged in 2010. By then, though, Fillery already had a criminal record — he was convicted of making and possessing indecent images of children in 2003. He now helps run the Lion public house in the village of Thurne in the Norfolk Broads. Photo: PA 

“CUNNING AND DEVIOUS”
A CHARGE against former Scotland Yard detective Sid Fillery — perverting the course of justice in connection with the murder of Daniel Morgan— was dropped in 2010. By then, though, Fillery already had a criminal record — he was convicted of making and possessing indecent images of children in 2003. He now helps run the Lion public house in the village of Thurne in the Norfolk Broads.
Photo: PA

“They use some of the techniques in their own daily activities.”

“Such is their level of access to individuals within the police, through professional and social contacts, that the threat of compromise to any conventional investigation against them is constant and very real.”  

But on that Tuesday — 6 July 1999 — Rees is oblivious to the fact that his office is bugged.

When he rings Gary Jones at the Daily Mirror to discuss invoices, he believes the conversation is private.

Rees says he’s faxing through a full list of invoices for the work done for the Mirror Group (including the MirrorPeople and the Sunday Mirror) that year.

The total is £16,991 for the five months. 

The list includes nearly £6,000 for the illegal supply of itemised print-outs of calls made from phones. 

Rees says

“… when it comes through you’ll see the invoice, with lots of stars next to them, and roughly billed at about £300 odd — which is print-outs.“

Rees tells Jones there are 19 of these print-outs with the initials of the reporters who ordered them, with “G.J. being you.”

Later that day Rees and Jones have another discussion about the lack of detail on the invoices relating to these print-outs.

Jones is under pressure from the paper’s accounts department to provide more information on the Southern Investigations invoices.

Rees loses his temper:

“Well they are printouts …”

“ … this is tiresome, fucking tiresome …”

“ … we are not going to put the numbers in there because what we are doing is illegal …”

“ … I don’t want people coming in and nicking us for criminal offence, you know.”

When this conversation takes place, Gary Jones is sitting at his desk in the Daily Mirror newsroom on the 22nd floor of the skyscraper at Canary Wharf.

A few yards away is the editor’s corner office.

Can Piers Morgan have known absolutely nothing about Gary Jones’ illegal activities?

♦♦♦

OPERATION TWO BRIDGES comes to an abrupt end in September 1999.

The bug in Southern Investigations reveals Rees has a client fighting his estranged wife for custody of their child.

Rees agrees to organise a conspiracy with a corrupt police officer to plant cocaine in the wife’s car.

The plan is to saddle her with a drugs conviction — so proving her to be an unfit mother.

The police pounce on the conspirators.

Rees and the client are given seven year prison sentences.

The corrupt police officer is gaoled for five.

Sid Fillery is not involved. 

SURVEILLANCE OPERATION TWO BRIDGES officers photographed Jonathan Rees outside the offices of Southern Investigations in south London. Detectives were watching the building while others listened in on the bug secretly placed inside …  Photo: PA 

SURVEILLANCE OPERATION
TWO BRIDGES officers photographed Jonathan Rees outside the offices of Southern Investigations in south London. Detectives were watching the building while others listened in on the bug secretly placed inside … 
Photo: PA

When police closed in on the conspiracy, they also arrested many of those suspected of being involved in illegal news-gathering.

One of them was Doug Kempster, a reporter with the People, part of the Mirror group.

An internal police report shows some senior police officers wanted a conviction:

“It is likely that journalists and private investigators who actively corrupt serving officers would receive a long custodial sentence if convicted.”

“There will be a high level of media interest in this particular investigation, especially when involving journalists.”

“The Metropolitan Police will undoubtedly benefit if a journalist is convicted of corrupting serving police officers.”

“This will send a clear message to members of the media to consider their own ethical and illegal involvement with employees of the Met in the future.”

Police submitted a file to the Crown Prosecution Service which decided not to charge the reporter.  

Kempster’s arrest sent shock waves around senior management at the Mirror Group.

But it did not stop illegal news-gathering at Piers Morgan’s Daily Mirror.

With Jonathan Rees in gaol, the paper turned to another private eye — Steve Whittamore.

By the time he was arrested for breaches of the Data Protection Act in 2003, the paper had spent at least £92,000 with the private eye.

In our article Whodunnit? we exclusively revealed that one of the Mirror reporters who apparently commissioned work from Whittamore was Tom Newton Dunn.

TOM NEWTON DUNN THE CURRENT political editor of The Sun, Tom Newton Dunn was a young Mirror reporter when he ordered an unlawful criminal record check. Photo: PA

TOM NEWTON DUNN
THE CURRENT political editor of The Sun, Tom Newton Dunn was a young Mirror reporter when he allegedly ordered an unlawful criminal record check.
Photo: PA

Today, he’s the political editor of The Sun.

In the early 2000s Dunn’s name was recorded by Whittamore as the Mirror contact for a criminal record check of a parliamentary candidate. 

This was Adrian Flook, who later became Tory MP for Taunton.

Newton Dunn does not answer our emails.

♦♦♦

IS IT possible Piers Morgan didn’t know what was going on at the Mirror when he was editor? 

During the Leveson Inquiry journalist James Hipwell gave evidence about phone hacking when he worked at the paper between 1998 and 2000.

Hipwell was a financial journalist and worked close to the paper’s showbiz reporters.

He said they hacked openly and frequently.

Hacking was “a bog-standard journalistic tool for gathering information.” 

He had no direct evidence Piers Morgan was involved but added: 

“I would say that it is very unlikely that he didn’t know it was going on …”

“The newspaper was built around the cult of Piers.”  

“He was the newspaper.”

‘Nothing happened at the newspaper without him knowing.”

When he gave evidence, Morgan was contemptuous of Hipwell.

Hipwell had been gaoled for six months for insider dealing in 2000 while working for the paper’s City Slickers column.

He bought shares in a company owned by Alan Sugar before they were tipped by the column.

JAMES HIPWELL A FORMER Daily Mirror financial reporter in the late 1990s, Hipwell says phone hacking was “bog-standard” among the paper’s show-business journalists. Piers Morgan claims Hipwell was not a credible witness because he had a grudge against him — but several judges preferred Hipwell’s testimony to Morgan’s …   Photo: PA

JAMES HIPWELL
A FORMER Daily Mirror financial reporter in the late 1990s, Hipwell says phone hacking was “bog-standard” among the paper’s show-business journalists. Piers Morgan claims Hipwell was not a credible witness because he had a grudge against him — but several judges preferred Hipwell’s testimony to Morgan’s …  
Photo: PA

The shares rocketed in value the next day.

Piers Morgan also bought shares but always insisted he didn’t know they were going to be the subject of a Mirror article.

In a statement to Leveson, Morgan wrote:

“I note that Mr Hipwell is a convicted criminal who changed his story on a number of occasions during the City Slickers investigation, in part to wrongfully implicate me.”

“I believe any testimony he gives to be inherently unreliable.”

Leveson, though, found Hipwell a credible witness:

“… the Inquiry does conclude that the practice of phone hacking may well have taken place at the Mirror titles at the time Mr Hipwell was working there …”

Leveson also questioned Piers Morgan about his comment after the 2007 gaoling of News of the World royal correspondent Clive Goodman for hacking royal phones.

Morgan had been Goodman’s editor at the News of the World in 1994-1995.

“… I feel a lot of sympathy for a man who has been the convenient fall guy for an investigative practice that everyone knows was going on at every paper in Fleet Street for years.” 

Morgan told Leveson he was talking about the “rumour mill” at the time — and that phone hacking wasn’t happening at the Daily Mirror.

Leveson was caustic:

“This was not, in any sense at all, a convincing answer.”

“Overall, Mr Morgan’s attempt to push back from his own bullish statement to the Press Gazette was utterly unpersuasive.”

♦♦♦

MORE AND more evidence is emerging about the “dark arts” at the Daily Mirror.

So far Operation Golding, the Scotland Yard operation into phone hacking at the Mirror Group, has seen 15 journalists — including Piers Morgan — questioned under caution. 

The investigation continues.

Scores of civil claims are also generating large amounts of information.

In May Mr Justice Mann ordered the Mirror group to pay eight victims a massive £1.2 million in damages.

MIRROR, MIRROR THERE ARE two Piers Morgans. Photo: PA

MIRROR, MIRROR
THERE ARE two Piers Morgans. There’s the brash tabloid editor with the big mouth who’s made a large number of comments making it clear he knew all about the “dark arts” when he was the paper’s editor. And then there’s the innocent journalist who claims he’s been misunderstood — he’s actually a high-minded, ethical editor. If these terrible things happened on his watch, he certainly didn’t authorise them …
Photo: PA / Graphic: Terry Evans, Wheelbarrow Studios

Six were victims of the Daily Mirror during Piers Morgan’s tenure — including the actress Sadie Frost and the footballer Paul Gascoigne.

The judgment also revealed that the Mirror papers:

“admitted paying over £2.25 million (in over 13,000 invoices) to certain named private eyes in the years from 2000 to 2007.”

Mr Justice Mann noted that the Mirror’s legal team acknowledged:

“that ‘an unquantifiable but substantial’ number of the inquiries made of the agents is likely to have been to obtain private information that could not be obtained lawfully.”

♦♦♦

© Press Gang
Published: 29 June 2015

♦♦♦

NOTES

1  Many of the examples where Piers Morgan is alleged to have made statements indicating he knew about phone hacking have been left out of this article. They are all well known and including them would have made the piece too long.

2  There are reporting restrictions in the recent civil case against the Mirror group. Mr Justice Mann ordered the names of several journalists should be redacted — apparently because they are the subject of active police inquiries.

3  A more detailed analysis of Mr Justice Mann’s decision will be included in a planned article — The Mirror: Crack’d From Side To Side — about the group’s disastrous management of the scandal.

4  Since the Mann judgment opens the way to everyone targeted by the Daily Mirror, a full list of all those whose names are included in the Southern Investigations invoices will be added to this post later. They include, for example, the environmental activist Daniel “Swampy” Hooper as well as scores of ordinary people …

♦♦♦

COMING UP 
A SLICKER FULL OF LIES
THE STORY of Piers Morgan’s involvement in the “Slickergate Affair” of 2000 makes sobering reading. There is evidence that Morgan sacrificed two of his journalists to save his own skin — and that senior Mirror Group managers were in on the plot. The attempt to spin the truth of what happened even involved lying to Lord Leveson …  Part five of A Pretty Despicable Man tells the story of a deliberate corporate cover-up  … 

 ♦♦♦

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CORRECTIONS
Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

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DOWN IN THE GUTTER

June 7, 2015

PIERS_MORGAN_part_3

 ON MAY 21 Mr Justice Mann delivered a damning verdict on the Mirror group. 

He found that its newspapers — the Daily Mirror, Sunday Mirror and the People — had engaged in phone hacking and other illegal news-gathering on a massive scale.

In a test case at the High Court, he ordered the company to pay £1.2 million in damages to just eight victims.  

Six of these — including the footballer Paul Gascoigne, BBC executive Alan Yentob and the actress Sadie Frost — were also hacked by reporters working for Piers Morgan during his 1995-2004 tenure as Daily Mirror editor.

Many more cases are in the pipeline.

Morgan himself has been interviewed under caution by detectives as part of Operation Golding, the Scotland Yard inquiry into phone hacking at the group.

Press Gang continues its investigation of the former tabloid editor with a revealing tale of the Daily Mirror’s intrusion into the private life of television newsreader Kirsty Young.

♦♦♦

IN 2009 Piers Morgan was put on the spot about his knowledge of the “dark arts” — including phone hacking — at the Mirror.

He was a guest on the BBC Desert Island Discs programme in June that year.

Presenter Kirsty Young asked him:

“And what about this nice middle-class boy who would have to be dealing with, I mean, essentially people who rake through people’s bins for a living?

KIRSTY YOUNG  THE SCOTTISH journalist's interview with Piers Morgan on Desert Island Discs in 2009 has proved to be a serious embarrassment for the former Mirror editor. Photo: PA

KIRSTY YOUNG
THE SCOTTISH journalist’s interview with Piers Morgan on Desert Island Discs in 2009 has proved a serious embarrassment for the former Daily Mirror editor.
Photo: PA

“People who tap people’s phones, people who take secret photographs… who do all that very nasty down-in-the-gutter stuff — how did you feel about that?”

Morgan was clear:

“Well, let’s put that into perspective …”

“Not a lot of that went on …”

“A lot of it was done by third parties, rather than the staff themselves …”

“That’s not to defend it, because obviously you were running the results of their work.”

“I’m quite happy … to have to sit here defending all these things I used to get up to …”

“I make no pretence about the stuff we used to do.”

“I simply say the net of people doing it was very wide …”

These comments echoed his views when News of the World royal correspondent Clive Goodman was gaoled for hacking royal phones in 2007.

Morgan — who had been Goodman’s editor at the News of the World in 1995 — told trade journal Press Gazette he had a lot of sympathy for Goodman:

“… a man who has been the convenient fall guy for an investigative practice that everyone knows was going on at almost every paper in Fleet Street for years.” 

But he suddenly changed his tune after the revelation, in July 2011, that murdered schoolgirl Milly Dowler’s phone had been hacked. 

When the U.S. Daily Beast website resurrected his Desert Island Discs comments, Morgan was emphatic.

He told the Beast:

REVISIONISM AS SOON as it became clear that the phone hacking scandal was going to see journalists gaoled , Piers Morgan has been trying desperately to distance himself from earlier statements which suggested he knew all about the practice ...  Photo: PA

REVISIONISM
AS SOON as it became clear that the phone hacking scandal was going to see journalists gaoled, Piers Morgan has been struggling to distance himself from earlier statements suggesting he knew all about the practice.
Photo: PA

“For the record … I have never hacked a phone, told anyone to hack a phone, or published any stories based on the hacking of a phone.”

By the time Morgan appeared before Lord Leveson in December 2011 he was claiming there’d been a misunderstanding during the Desert Island Discs recording:

“I didn’t hear her say phone-tapping.”

“She rattles off a list of stuff, and if you listen to it in real time I think you would see that.”

(Readers can judge for themselves: here’s the link to that edition of Desert Island Discs.)

But when Piers Morgan appeared on the programme, there was one thing he didn’t tell Kirsty Young.

And when he gave evidence to the Leveson Inquiry, he didn’t mention it either … 

It was that Young herself been the target of “down-in-the-gutter” tactics by Piers Morgan’s Mirror.

The story is also pregnant with the possibility it started as a result of phone-hacking … 

♦♦♦

THE TALE begins in September 1998.

On the 5th, the Mirror exclusively revealed the presenter had split up with Scottish rugby star Kenny Logan.

A week later, the Mirror found out that Young had spent the night with Nick Jones, the millionaire owner of the Soho House club.

At the time Jones had just separated from his wife.

But, for reasons that have never been explained, the paper did not splash the story at that point.

NICK JONES                                                   THE ENTREPRENEUR who founded the Soho House group, Nick Jones had just separated from his wife Tania when he met Kirsty Young. The new couple — who are now married — were targeted by Piers Morgan's Daily Mirror when their relationship began in 1998.  Photo: PA

NICK JONES
THE ENTREPRENEUR who founded the Soho House group, Jones had just separated from his wife Tania when he met Kirsty Young. The new couple — who are now married — were targeted by Piers Morgan’s Daily Mirror when their relationship began in 1998.
Photo: PA

Instead, senior Mirror journalist Gary Jones asked a private eye to organise a surveillance operation.

This was Jonathan Rees, a partner in the Southern Investigations detective agency.

Rees had been a suspect in the murder of his former partner Daniel Morgan in 1987.

(See The No 1 Corrupt Detective Agency for more details.)

On September 16, one of Rees’ “agents” used a motorbike to keep tabs on her movements.

He spent three hours and travelled 35 miles.

The next day, it was for just under three hours, clocking up 25 miles.

On September 18, it was exactly the same.

Rees charged the paper £260.25.

Again, the Mirror didn’t publish.

Again, the reasons why it hesitated have never been made clear. 

On September 22 Young was once again under observation — but not by Rees and his team.

JONATHAN REES THE CONTROVERSIAL private eye was an important cog in the Daily Mirror's illegal news-gathering operation. Rees had been a suspect in the 1987 murder of his partner Daniel Morgan and was convicted of conspiracy to plant cocaine on an innocent woman. He was given a seven year prison sentence.   Photo: PA

JONATHAN REES
THE CONTROVERSIAL private eye was an important cog in the Daily Mirror’s illegal news-gathering operation. Rees had been a suspect in the 1987 murder of his partner Daniel Morgan and was later convicted of conspiracy to plant cocaine on an innocent woman. He was given a seven year prison sentence.
Photo: PA

It seems the paper’s own reporters, convinced Young and Jones were an item, were now mounting their own surveillance operation.

On September 22 Young was followed from the studios where she’d just finished presenting the Channel 5 News.

She left the building at 7pm and was tailed to her flat in Kensington.

Nick Jones turned up and, an hour later, the pair were photographed at a local restuarant. 

They were still being watched the next morning when they had breakfast in a cafe.

The couple then travelled to Somerset to stay in the Babbington House country club near Frome, also owned by Jones’ company. 

After an overnight stay, Young caught the London train in time to read that evening’s Channel 5 News.

But it took another week before the Daily Mirror exclusively revealed — in a double page spread  on September 30 — that the couple were an item.

The piece was written by Lucy Rock and Oonagh Blackman. 

“DARK ARTS” MASTER
GARY JONES — today he’s executive editor of the Sunday Mirror — was one of the key figures in the illegal news-gathering activities at the Daily Mirror. A former crime reporter on the News of the World when Piers Morgan was editor in 1994-199, he moved to the Mirror in 1996.

So why did it take the Mirror so long to make its dramatic revelation?

The paper sat on the information for at least a week — and possibly a fortnight.

The story was tabloid dynamite and every day the Mirror risked being scooped by one of its rivals. 

Surveillance has never been illegal and — at that time — listening to phone messages was not unlawful.

But paying someone to blag confidential details of phone numbers and PIN codes was a criminal offence.

Was this the original source of the story — and the paper was desperate to find alternative sources for the story?

Former Daily Mirror reporter James Hipwell claims that, by mid-1999, phone hacking was “rife” and “endemic” at the paper, especially on its showbiz desk.

Even though Hipwell was gaoled for insider dealing at the paper in 2000, his testimony was considered reliable by Lord Leveson — and by Mr Justice Mann in last month’s civil case. 

♦♦♦

WE ASKED all those involved in the Kirsty Young story to comment. 

Gary Jones, the senior journalist who asked Jonathan Rees to carry out the surveillance operation, didn’t reply.

He’s been named in several Press Gang articles but doesn’t answer our emails. 

JAMES HIPWELL THE FORMER Mirror financial reporter claims that phone hacking started at the Daily Mirror in mid-1999. Although he was gaoled for insider dealing at the Daily Mirror, judges — including Lord Leveson and Mr Justice Mann, have believed his testimony. Photo: PA

JAMES HIPWELL
THE FORMER Daily Mirror financial reporter claims that phone hacking started at the paper in mid-1999. Although he was gaoled for insider dealing at the Daily Mirror, judges — including Lord Leveson and Mr Justice Mann — have believed his testimony.
Photo: PA

We have not been able to contact Oonagh Blackman, one of the reporters who wrote the exposé of Kirsty Young and Nick Jones’ relationship.

We emailed the other by-lined journalist, Lucy Rock — now news editor at The Observer.

She told us:

“I was asked by the newsdesk to ‘doorstep’ those involved.” 

“I don’t know where the tip came from, but there was never any suggestion of phone hacking.”

“Indeed, I heard no mention of this practice during my time at The Mirror.”  

We were unable to reach Piers Morgan.

He’s never answered any of our emails. 

We left a message with Nick Jones, Kirsty Young’s husband, at Soho House.

He didn’t come back to us.

♦♦♦

IN 2005 Piers Morgan published his best-selling memoirs, The Insider.

It’s an account of his years as editor of the News of the World (1994-1995) and Daily Mirror (1995-2004).

There’s not a word about the “dark arts” practiced at the Daily Mirror

In the late 1990s anti-corruption detectives at Scotland Yard launched Operation Two Bridges against Jonathan Rees and his Southern Investigations private detective agency.

They wanted information about Rees’ attempts to corrupt serving police officers — and about his alleged involvement in the 1987 murder of his partner Daniel Morgan.

Invoices seized from Southern Investigations during Operation Two Bridges show the firm was a key element in Piers Morgan’s editorial strategy.

INSIDER SECRETS PIERS MORGAN published his memoirs — The Insider — but there's no mention of the

INSIDER SECRETS
PIERS MORGAN published his memoirs — The Insider — in 2005 but there’s no mention of the “dark arts” used at the Daily Mirror
Photo; PA

In August 2011 BBC economics editor Robert Peston obtained a set of these invoices.

He revealed that, between October 1997 and September 1999, the Mirror group used Jonathan Rees on 230 occasions.

Peston calculated that the Daily and Sunday Mirror paid Rees just under £67,000.

Many of these were simple “fishing expeditions” — finding out about famous people’s financial affairs.

Often the information was not newsworthy — and nothing appeared in the Daily Mirror.

Press Gang has also obtained a set of these invoices.

Here are some of the entries that could have gone into Piers Morgan’s diaries — if he’d decided to tell the truth about what the Daily Mirror was really up to …

20 May 1998  The Mirror’s Gary Jones ordered “confidential enquiries” on “Emma Noble”, then girlfriend of former Prime Minister John Major’s son. No private information appeared in the paper. Cost: £282.

13 July 1998  In another fishing expedition, Gary Jones asked Jonathan Rees to obtain “bankers details” on No 10 advisor Roger Liddle and lobbyist Derek Draper. The two men were suspected of selling access to Labour ministers. The cost — £662.47.

21 Sept 1998  Arthur Scargill’s wife, Dr Margaret Scargill, was the target. Gary Jones spent £403.37 on “bankers details”. Nothing appeared in the paper. 

THE FORMer English rugby srar, hacked by the Mirror.

WILL CARLING
THE FORMER captain of the England rugby team, Carling was blagged by the Daily Mirror in 1998. The paper published details of his bank account and mortgage.
Photo: PA

6 Oct 1998  The paper paid Jonathan Rees £677.97 to dig out personal information on Will Carling. The former England rugby international was in the news because he’d left his wife. Gary Jones ordered the search for “Financial / Company Information” which was extracted from “RBS, Abbey National”. The bill was £677.97. 
    This time personal information was published. In a long piece written by Gary Jones, Colin Price and Oonagh Blackman on October 7, two quotes stand out. One says: “Last month Carling took £5,000 in salary from the business to pay his mortgage.” One of his companies — Inspirational Horizons — “has just £1,500 in its account”. This could have come from his RBS bank account. 
    The second states: “The star, who has a £400,000 mortgage on the five bedroom property, needs to find more than £2,800 a month in repayments.” Did this come from his Abbey National mortgage? Will Carling told us
 he did not want to comment. 

19 Oct 1998  Jonathan Rees sent Gary Jones two bills relating to an investigation of the business affairs of TV presenter Anthea Turner’s then boyfriend Grant Bovey. Turner had left her husband the previous January and moved in with Bovey. The first invoice, for £500, was for “confidential enquiries” about Bovey and his wife. The second — “undertaking detailed financial searches” into Bovey — was worth £569. The total was £1,069.
A double page spread had appeared on Bovey’s affairs four days earlier. The piece — written by Gary Jones, Matthew Wright and Oonagh Blackman— stated Bovey’s bankers were “calling for crisis talks to discuss his personal problems.” “They have told him to stop issuing cheques after running up an overdraft of nearly £16,000.” This information could have been blagged from Bovey’s bank.

PETER MANDELSON   THE LABOUR minister was another victim of the Daily Mirror. He resigned as Trade Secretary in December 1998 after it was revealed he'd failed to declare a £378,000 personal loan from fellow minister Geoffrey Robinson. The day before his resignation the Mirror's Gary Jones asked Jonathan Rees to blag details of the Trade Minister's bank and mortgage accounts. The Mirror revealed Mandelson had £50,000 in a Coutts account — and that his £150,000 mortgage with the Britannia Building Society cost £1,000 a month. According to the BBC's Robert Peston, the Mandelson operation cost the Mirror £1,116.  Photo: PA

PETER MANDELSON
THE LABOUR minister was another victim of the Daily Mirror. He resigned as Trade Secretary in December 1998 after it was revealed he’d failed to declare a £378,000 personal loan from fellow minister Geoffrey Robinson. The day before his resignation the Mirror’s Gary Jones asked Jonathan Rees to blag details of the Trade Minister’s bank and mortgage accounts. The Mirror revealed Mandelson had £50,000 in a Coutts account — and that his £150,000 mortgage with the Britannia Building Society cost £1,000 a month. According to the BBC’s Robert Peston, the Mandelson operation cost the Mirror £1,116.
Photo: PA

4 Jan 1999  Gary Jones paid Jonathan Rees £499.37 to find information about Alistair Campbell, Prime Minister Tony Blair’s press secretary. No personal financial details appeared in the Mirror. The cost was £499.37.

15 Mar 1999   The Mirror pays £264.37 for information about Mick Jagger — no confidential material appeared in the paper.

♦♦♦

ALL OF these individuals have grounds for suing the Daily Mirror.

Their chances of success have been strengthened by last month’s verdict in the eight “sample” cases heard by Mr Justice Mann.

The judge ruled that, even for those whose confidential details were never published in the newspaper, damages can be awarded.

His judgment also reveals the extraordinary scale of illegal newsgathering —  the “dark arts” — at the Mirror and its stablemates.

CROCODILE CONTRITION  THE MIRROR'S limited apology published in February this year — more than a decade after the paper began phone hacking. In the civil case last month, Mr Justice Mann considered this to be a

CROCODILE CONTRITION
THE MIRROR’S limited apology published in February this year — more than 15 years after the paper began phone hacking. In the civil case last month, Mr Justice Mann considered this to be motivated by “tactical” legal reasons rather than genuine “contrition” …

Up to now, for example, Press Gang has only been aware of two private eyes who were used by the papers.

They are Jonathan Rees of Southern Investigations in the years up to 1999 and Steve Whittamore in the early 2000s.

The BBC revealed that the Daily and Sunday Mirror spent £67,000 with Southern Investigations between 1997 and 1999. 

An analysis by ITV News showed that the Daily Mirror paid Steve Whittamore at least £92,000 up until his arrest in March 2003.

That makes a total of £159,000.

But the Mann verdict reveals this was just the tip of the iceberg.

Judge Mann noted that the Mirror papers:

“admitted paying over £2.25 million (in over 13,000 invoices) to certain named private eyes in the years from 2000 to 2007.”  

“The total covers a lot of agents, and some of their work may have been legitimate.”

But the judge added that the Mirror’s legal team:

“has admitted that ‘an unquantifiable but substantial’ number of the inquiries made of the agents is likely to have been to obtain private information that could not be obtained lawfully.” 

In other words, illegal news-gathering — including but not limited to phone hacking — was taking place on a colossal scale at the group.

♦♦♦

Published: 7 June 2015
© Press Gang 

♦♦♦

NOTES

1  There are reporting restrictions in the recent civil case against the Mirror group. Mr Justice Mann has ordered the names of several journalists should be redacted — apparently because they are the subject of active police inquiries.

2  A more detailed analysis of Mr Justice Mann’s decision will be included in a planned article — The Mirror: Crack’d From Side To Side — about the group’s disastrous management of the scandal.

3  Since the Mann judgment opens the way to everyone targeted by the Daily Mirror, a full list of all those whose names are included in the Southern Investigations invoices will be added to this post later. They include, for example, the environmental activist Daniel “Swampy” Hooper as well as scores of ordinary people …

♦♦♦

COMING UP 
DIAL M FOR MORGAN
THE JUDGE in last month’s civil case against the Mirror group accepted that phone hacking became a key feature of the papers in mid-1999. In part four of A Pretty Despicable Man Press Gang presents cast-iron evidence Daily Mirror reporters were hacking the phones of senior politicians a year earlier…

 ♦♦♦

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CORRECTIONS
Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY
If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

 

TORY MP CONCEALED LINK TO MILIBAND TORMENTOR

May 6, 2015
.
 

TORY MP Andrew Jones failed to declare an interest in a company owned by controversial Leeds businesswoman Catherine Shuttleworth.

Shuttleworth hit the headlines in last week’s BBC Question Time when she attacked Labour leader Ed Miliband.

Andrew Jones, MP for Harrogate and Knaresborough in the last Parliament, helped Shuttleworth set up her marketing business in May 2006.

ANDREW JONES THE MP worked with Catherine Shuttleworth in the late 1990s and was company secretary of her marketing business until 2010. But he didn't tell Parliament about their links ... Photo:

NOT SAVVY
THE MP worked with Catherine Shuttleworth in the late 1990s and was company secretary of her Get Savvy Marketing company until 2010. But he didn’t tell Parliament about the appointment — he says he took no payment from the company after he was elected. 

He was company secretary for more than four years.

He should have declared his interest when he was elected an MP in the May 2010 General Election.

He didn’t do so.

Press Gang investigates the links between an MP and a marketing executive …

♦♦♦

IT WAS the Daily Mail which prompted this inquiry.

The paper lionised Catherine Shuttleworth after she savaged Ed Miliband on Question Time last Thursday over the economy.

She volunteered to be a member of the Question Time audience as an “undecided” voter but declared she was going to vote Conservative during her exchange with the Labour leader.

The Daily Mail hailed her as “the woman who shredded Red Ed”.

It continued:

“How marketing company boss used laser-like precision to lead audience attack on Labour leader.”

However, Twitter comments began revealing that she had signed a letter from 5,025 small businesses to the Daily Telegraph backing the Tories just four days before the programme.

SCAMP Catherine Shuttleworth started her company in 2006 under the name Scamp Marketing. In 2011 she told the Yorkshire Post the company had a turnover of £6.5 million and 70 staff. In December 2013 the company had cash in the bank of £382,000. Photo: BBC

SCAMP
Catherine Shuttleworth started her company in 2006 under the name Scamp Marketing. In 2011 she told the Yorkshire Post Get Savvy Marketing had a turnover of £6.5 million and 70 staff. In December 2013 the company had cash in the bank of £382,000.
Photo: BBC

The letter was clear:

“We would like to see David Cameron and George Osborne given the chance to finish what they have started.”

Other tweets also revealed she’d started her Leeds-based marketing company with Andrew Jones MP.

The Daily Mail allowed Shuttleworth to answer these criticisms in an Exclusive interview on May 1.

The paper asked her if she was a Tory.

“Oh God no,” she replied.

“I’ve never been a member of any political party and I do not intend to be.”

“I’m not a Tory at all. It’s absolute nonsense. Absolutely not, categorically no.”

She signed the Telegraph letter from small businesses:

” … because I agreed with it. I have never done anything like that before.”

She explained how Andrew Jones — Tory MP for Harrogate and Knaresborough and a candidate in tomorrow’s General Election — came to be involved in her business Get Savvy Marketing.

She told the paper:

“Fifteen years ago I worked with Andrew in another business.”

“When I set my business up nine years ago a number of people helped me to do different things and Andrew helped me do some of that.”

“That was long before his political career started.”

“There is no connection, he literally set some stuff up.”

The Daily Mail article was so uncritical of Shuttleworth that Press Gang decided to investigate.

We found most of her comments do not stand up to serious examination …

♦♦♦

WHEN CATHERINE Shuttleworth was an 18-year-old student, she was super-confident.
 
“Never in my whole life have I thought I couldn’t do something,” she told the Yorkshire Post in 2011. 
 
Her “back-up plan”, she told her interviewer, was to be Prime Minister.
 

She didn’t say which party she would be leading …

QUESTIONABLE TIME  DAVID DIMBLEBY should have been sharper during the exchange between the allegedly

QUESTIONABLE TIME
DAVID DIMBLEBY might have been sharper during the exchange between the allegedly “undecided” Shuttleworth and Ed Miliband. When she attacked the Labour leader — over the note Chief Secretary to the Treasury Liam Byrne left for his successor in 2010 saying: “I’m afraid there is no money” — Dimbleby could have reminded viewers that the Tories have also made similar jokes. In 1964 Tory Chancellor Reginald Maudling left a note to his successor James Callaghan which said: “Good luck, old cock … Sorry to leave it in such a mess.”
Photo: BBC

Shuttleworth went to school in Sheffield and studied retail marketing at Manchester Polytechnic.After working at Allied Carpets and Dixons, she came back to Yorkshire in 1994 when her partner Neal Austin got a job with supermarket group ASDA.

Shuttleworth went to run a marketing company which did work for ASDA.

By 2003, she and her husband were moving up in the world.

They bought a detached house in Weeton Avenue, Leeds for £535,000.

In 2006, her husband left ASDA to become a senior executive at rival Morrisons. 

In the same year, Shuttleworth set up Get Savvy Marketing after winning a big contract from ASDA.

The company secretary was Andrew Jones — the man who would later become Tory MP for Harrogate and Knaresborough.

Jones had spent 25 years in sales and marketing with firms like B&Q, Superdrug, Going Places and Taylors of Harrogate. 

The pair had already worked together.

Jones was never a shareholder in Get Savvy Marketing and Shuttleworth, who began with three-quarters of the shares, soon owned them all. 

But when she told the Daily Mail —

“When I set my business up nine years ago a number of people helped me to do different things and Andrew helped me do some of that.”

“That was long before his political career started.” 

— she wasn’t telling the truth.

Andrew Jones joined the Conservative Party in 1987.

A decade later he was already a well-known figure in Conservative circles and chaired the influential think-tank, the Bow Group, in 1999-2000.

In 2001 he unsuccessfully contested the Harrogate and Knaresbrough constituency. In 2003 he was elected a Tory councillor on Harrogate Borough Council — and rose to become Cabinet Member for Finance and Resources.

He was still company secretary of Get Savvy Marketing when he became an MP …

♦♦♦

WHEN NEW MPs are elected to Parliament, they are expected to declare their financial interests.When Andrew Jones entered the House in 2010, the relevant Code of Conduct stated that its purpose was

” … providing the openness and accountability necessary to reinforce public confidence … ”

“Members are required to complete a registration form and submit it … within one month of their election to the House … ”

Any change must be registered within 28 days.

NON-DECLARATION ANDREW JONES' entry in the 2010 Register of Members' Financial Interests. There is no declaration of  his role in Catherine Shuttleworth's company. All he admits to is receiving £872 as a Harrogate Borough councillor in his first two months as an MP.

NON-DECLARATION
ANDREW JONES’ entry in the 2010 Register of Members’ Financial Interests. There is no declaration of his role in Catherine Shuttleworth’s company. All he admits to is receiving £872 as a Harrogate Borough councillor in his first two months as an MP.

The first register of the 2010-2015 Parliament was published on 25 October 2010.

The only entry under Category 2 —  “Remunerated employment, office, profession, etc …” — is Jones’ payments as a Harrogate councillor.

He did not resign from Get Savvy Marketing until the following month.

A spokeswoman for the Parliamentary Commissioner for Standards, Kathryn Hudson, told Press Gang:

“During dissolution (i.e. until after the General Election) the Commissioner cannot look at any allegations of breaches of the rules.”

Press Gang will lodge a complaint once the election is over.

We asked Andrew Jones for a comment.

There was no reply by the time this piece was posted in the early hours of Wednesday morning.

However, later that morning he emailed the following statement:

“MPs are required to declare outside earnings in the Register of Members’

Financial Interests, to detail who employed them, how much money was earned, how many hours worked and the nature of the work.From the date I was elected onwards I did no work for the Company, so
therefore received no remuneration. To be clear, while the paperwork and
administrative arrangements were made for terminating my role as Company Secretary and putting in place new arrangements for the Company I did no work and therefore received no payments or benefits of any kind.Had I done so my understanding is that a declaration would have been
required and I would have made such a declaration. There was nothing to
declare, so the Register of Members’ Financial Interests is complete and
correct.”

Press Gang also asked Harrogate Borough Council for the last declaration Andrew Jones made when he was a councillor.We were interested to see if he’d declared his role in Get Savvy Marketing.

After seven hours Giles Latham — the authority’s Communication and Marketing Manager (Organisational Development and Improvement) — came back to say the council couldn’t find it.

We then asked for copies of all Andrew Jones’ declarations during the years he served.

Latham came back to say that this — and other questions — would be considered under the Freedom of Information rules.

This gives the authority up to four working weeks to reply …

♦♦♦

PRESS GANG also emailed Catherine Shuttleworth.

We asked about her false comment to the Daily Mail that Andrew Jones’ involvement in Get Savvy Marketing took place long before he became a politician.

There was no reply by the time this article was posted. 

♦♦♦

Published: 6 May 2015
© Press Gang 

♦♦♦ 

NEXT
DOWN IN THE GUTTER
A FORENSIC examination of Piers Morgan’s celebrated appearance on Desert Island Discs in 2009. He told presenter Kirsty Young phone hacking was one of the “down in the gutter” tactics used on the Daily Mirror.

What he didn’t tell her was that she, too, had been a target of the paper’s “gutter” tactics. In 1998 the paper mounted a surveillance operation to prove she was having an affair with a married man.
The story is also pregnant with the possibility it was based on phone hacking …

 ♦♦♦

JOIN THE GANGBUSTERS …
THERE’S A need for a trustworthy website to expose rogue reporters. Press Gang is that outlet — fearless and fair. Join us by becoming a gangbuster and help pay some of our expenses. Just hit the button …

Donate Button with Credit Cards

CORRECTIONS
Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY
If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

ASSAULT ON THE BANK OF ENGLAND

April 27, 2015

PM - ASSAULT

THE DAILY MIRROR broke the law on an industrial scale throughout Piers Morgan’s editorship.

And police have had the evidence for more than a decade.

Already —in Whodunnit?Press Gang has shown the paper used a private eye to carry out illegal news-gathering in the early 2000s.

This included evidence that former Daily Mirror reporter Tom Newton Dunn — now political editor of the Sun — allegedly ordered a criminal record check on a sitting MP.

Piers Morgan claims he was ignorant of all of this.

He told the Leveson Inquiry he “had no specific recollection of any stories which depended on the work of private investigators …”

He insisted he was “not aware” of any private investigators “having been found to have engaged in any criminal activity … or of any Daily Mirror employee having any involvement in such law-breaking.” 

Press Gang presents new evidence that further undermines this testimony.

The Daily Mirror was routinely using a controversial private eye in the late 1990s to illegally access confidential information about the rich and powerful.

One of the most dramatic examples — the paper’s decision to break into the bank and building society accounts of a powerful Bank of England committee … 

♦♦♦

IT’S A WEDNESDAY morning at the Daily Mirror offices in Canary Wharf.

On the 22nd floor of the big skyscraper — One Canada Square —  the morning conference is under way.

The meeting is taking place in editor Piers Morgan’s corner office.

The next day’s paper — Thursday, 8 October 1998 — is being planned.

One of the items on the agenda: how the paper will cover tomorrow’s lunchtime announcement from the Bank of England on interest rates.

It’s important because a fall in the rate — currently 7.5 per cent — is widely expected.

It will be the first for many years.

The decision — to be made by the nine members of the Bank’s monetary policy committee — could affect the pockets of many Daily Mirror readers.

TARGETS THE NINE members of the Bank of England's monetary committee in 1998. All were the subject of an illegal

TARGETS
MEMBERS OF the Bank of England’s monetary committee in 1998. Many of them were the subject of an illegal “dark arts” operation organised by Piers Morgan’s Daily Mirror. Although the attack has been mentioned by other journalists — including Nick Davies (Guardian) and Robert Peston (BBC) — this is the first time the full story has ever been told.
Photo: PA

For Thursday’s paper, it’s already been decided the Mirror will find out about the mortgages of the nine committee members.

But there’s an elephant in the room.

Few in the conference will acknowledge it.

But some know collecting the information will involve breaking the law.

None of the members of the monetary committee will volunteer information about their mortgages. 

So the paper will have to resort to illegal techniques to obtain them.

These methods — later they’ll include phone hacking — are known as the “dark arts”. 

The task’s been handed to the paper’s resident “dark arts” master — senior news reporter Gary Jones. 

He served his apprenticeship on the News of the World.

He was the paper’s crime reporter when Piers Morgan was News of the World editor in 1994 and 1995. 

Jones followed Morgan to the Daily Mirror in 1996. 

Jones knows exactly who to contact to find out about the mortgages of the Bank of England committee members.

This is the private eye Jonathan Rees. 

Rees is a partner in Southern Investigations, a London firm specialising in acquiring illegal information. 

BENT PRIVATE EYE IN JONATHAN REES, the Daily Mirror is choosing a controversial character to do its dirty work. He's a long-standing suspect in the 1987 murder of his business partner Daniel Morgan. In 2009 he will stand trial for the murder only for the case to collapse in 2011. By then he will have served a seven year prison sentence for conspiring to plant cocaine on an innocent woman. See The No 1 Corrupt Detective Agency for more details. Photo: PA

BENT PRIVATE EYE
IN JONATHAN REES, the Daily Mirror is choosing a controversial character to do its dirty work. He’s a long-standing suspect in the 1987 murder of his business partner Daniel Morgan. In 2009 he will stand trial for the murder only for the case to collapse in 2011. By then he will have served a seven year prison sentence for conspiring to plant cocaine on an innocent woman. See The No 1 Corrupt Detective Agency for more details.
Photo: PA

By lunchtime on Wednesday, 7 October Rees has come up with the goods. 

Gary Jones and reporter Oonagh Blackman get together to write the story …

♦♦♦

THE NEXT day’s Daily Mirror carries an exclusive investigation.

Under the by-lines of Oonagh Blackman and Gary Jones, the story states:

“As millions sweat on a home loans cut, we reveal it’s
ALL RATE FOR SOME
Homeowners will have their mortgage rate fixed today by financiers so wealthy that they won’t be affected if it rises or falls.”

The piece reveals five members have no mortgage at all.

UNLAWFUL THE MIRROR'S exclusive report by Gary Jones and Oonagh Blackman is based on information obtained by

UNLAWFUL
THE MIRROR’S exclusive report by Gary Jones and Oonagh Blackman is based on information obtained by “blagging” — ringing banks and building societies and pretending to represent committee members. Blagging is a criminal offence under the Data Protection Act.

Some of this information could have come from legitimate sources — such as the government-owned Land Registry. 

But details of mortgages held by three members could only have been obtained unlawfully.

The piece says deputy Governor Mervyn King — who will later become Governor — has a £48,000 mortgage.

His apartment in Notting Hill costs him £400 a month in interest payments.

The Cobham, Surrey home of ex-CIA analyst and businesswoman DeAnne Julius costs £2,500 a month. 

She has a £200,000 mortgage. 

Dutch economist Professor Willem Buiter is paying £685 a month. 

He has an £80,000 mortgage on his cottage in the Bedfordshire village of Great Gransden. 

The paper goes to extraordinary lengths to find out about properties owned by the nine. 

There is some doubt about the extent of committee member Ian Plenderleith’s property near Petworth in West Sussex.

So Jonathan Rees sends an “agent” down to Petworth to make a sketch plan of the grounds.

Shortly after the article appears, the committee cut the interest rate from 7.5 per cent to 7.25 per cent.

SILENCE THERE'S NO mention of the illegal assault on the Bank of England in Piers Morgan's 2005 book, The Insider. His diary entry for 7 October 1998 — the day the attack was being prepared — concentrates on a refusal by the columnist Victor Lewis-Smith to come to lunch ... Photo: PA

SILENCE
THERE’S NO mention of the illegal assault on the Bank of England in Piers Morgan’s 2005 book, The Insider. His diary entry for 7 October 1998 — the day the attack was being prepared — concentrates on a refusal by the columnist Victor Lewis-Smith to come to lunch …
Photo: PA

♦♦♦

FOUR DAYS after the exclusive, Jonathan Rees sends three invoices to the Daily Mirror accounts department.

The total is £1,936.

There is little detail — all relate to “undertaking confidential enquiries”.

But a separate statement is sent to Gary Jones personally.

It’s marked

FOR YOUR INFORMATION ONLY  

This is more revealing.

It shows £361 of the bill is for legitimate purposes.

But it also makes clear that much of the remaining £1,575 is unlawful.

This amount is for nine separate searches of the committee members:

” … identifying their mortgage details as directed.”

The invoice even shows that Rees gave the paper a discount.

Instead of the normal rate of £275 a search, Rees had reduced the price to £175! 

Rees deliberately sends vague invoices to the Mirror accounts department because he knows he’s breaking the law.

So does Gary Jones.

In the Mirror newsroom is a copy of the reporters’ legal bible — McNae’s Essential Law For Journalists.

DARK ARTS MASTER GARY JONES is one of the key figures in the Daily Mirror's involvement with illegal news-gathering. In the first part of

DARK ARTS MASTER
GARY JONES is one of the key figures in the Daily Mirror’s involvement with illegal news-gathering. In the first part of A Pretty Despicable Man, Press Gang outlined his extensive use of the private eye Steve Whittamore in the early 2000s. Jones — now executive editor of the Sunday Mirror — has never replied to any of our questions …

It includes a chapter on the Data Protection Act (DPA).

The DPA had been amended by the Criminal Justice and Public Order Act of 1994 to create three new criminal offences:

“— procuring the disclosure of data covered by the … Act

— knowing or believing this to contravene the Act

— or offering to sell the data or information extracted from it.”

The Mirror has already published two separate articles about police officers charged with offences under the Data Protection Act.

A year before the assault on the Bank of England, the paper carries the conviction of a masonic police constable from Wiltshire.

He’d checked the Police National Computer to find out the identity of a fellow mason’s lover.

More evidence that Rees and Jones knew they were breaking the law was to emerge in 1999.

Scotland Yard detectives secretly bugged Rees’ office in south London.

Police listened as Rees and Jones argued about the amount of detail going into invoices to the paper.

The Mirror accounts department want more information.

Rees is adamant he isn’t going to give it:

” … because what we are doing is illegal, innit?”

“I don’t want people coming in and nicking us for criminal offences …”

All of the information in this account comes from documents held by Scotland Yard.

There’s no evidence detectives ever considered prosecuting Jonathan Rees and Gary Jones.

♦♦♦

TWO MONTHS after the operation against the bank of England, the Daily Mirror has another bank in its sights.

This time it’s Coutts & Co — bankers to the Royal Family.

The target is the Queen’s cousin, Prince Michael of Kent.

His commercial activities are handled by a private company — Cantium Ltd — which banks at Coutts HQ in the Strand.

Once again, the private eye involved is Jonathan Rees.

And his contact at the paper is Gary Jones.

Rees has already written to Jones giving numbers of three of the company’s Coutts accounts.

ROYAL BANKERS THE HEADQUARTERS of Coutts & Co in the Strand, London. The Daily Mirror's blagger had no trouble getting the details of three accounts belonging to the Queen's cousin, Prince Michael of Kent. Photo: Rebecca Television

ROYAL BANKERS
THE HEADQUARTERS of Coutts & Co in the Strand, London. The Daily Mirror blagger had no trouble getting the details of three accounts belonging to Prince Michael of Kent, the Queen’s cousin.
Photo: Rebecca Television

Now Rees asks John Gunning — of his team of “blaggers” — to ring the bank pretending to represent Prince Michael.

(Gunning will later be caught trying to blag confidential information out of BT.

In 2006 he’ll be convicted and fined £600.)

The next day — 26 January 1999 —  Prince Michael of Kent is on the front page of the paper with the headline:

PRINCE’S BANK CRISIS

The story says the company’s bank accounts are overdrawn to the tune of £220,000. 

It claims the overdraft is unauthorised — and that Coutts has frozen the accounts.

The operation against the Prince costs the Mirror £546.37.

In April 1999 the Scotland Yard bug in Jonathan Rees’ office picks up a phone call about this story.

The police note says Rees has been told Prince Michael is suing the Daily Mirror.

“The legal people wanted [Rees] to verify the information and state how he obtained it.”

Rees refuses.

In June 1999 — unable to prove its allegations without revealing the information is illegally obtained — the Mirror is forced to climb down.

The paper says

“… none of the accounts of Prince Michael … have been frozen or suspended and there have never been any unauthorised overdraft balances on any of those accounts.”

The Mirror adds:

“We accept that our original allegations were untrue …”

On this occasion, Scotland Yard did consider the case to see if any criminal offences had been committed.

A report seen by Press Gang states:

“The relevant evidence shows that Rees obtained personal data — the account numbers of Cantium — and then sold that information to Gary Jones.”

“The relevant offence … is covered by Section 55 [4] Data Protection Act … — Selling Personal Data.”

“This offence may be capable of proof.”

No further action is ever taken by the Metropolitan Police.

♦♦♦

IN JANUARY 1999 Prince Michael of Kent isn’t the only Royal in the Mirror’s frame.

Earlier the same month, it’s the Queen’s third son — Prince Edward.

He’s just become engaged to Sophie Rhys-Jones.

The Mirror orders “financial / company information on” the Prince and his new fiancée.

The Prince’s television production company —  Ardent Productions — has its accounts at Coutts. 

On January 5 Rees sends Gary Jones a bill for £339.57 for obtaining Ardent Productions’ “bankers details”. 

On January 12 Jones gets another bill — for £446.49.

This is for providing “financial / company information” on “R-JH PR, Ardent Productions”.

On this occasion, the blagger is John Gunning.

He targets Coutts and Lloyds Bank.   

At the time, Sophie Rhys-Jones is running a PR firm with the publicist Murray Harkin.

The business banks with Lloyds in the City of London. 

BLAGGED SOPHIE RHYS-JONES and Murray Harkin were partners in the public relations business RJH PR. Harkin remembers getting a call from Lloyds Bank during this period.

BLAGGED
SOPHIE RHYS-JONES and Murray Harkin were partners in the public relations business RJH PR. Harkin confirmed getting a call from Lloyds Bank during this period. “I was told they knew someone had successfully — after many attempts, perhaps as many as 26 — guessed my password and obtained confidential information.”
Photo: PA

John Gunning invoices Jonathan Rees.

His bill contains details of Lloyds Bank account number 121131 — the account of RJH PR — and its credit balance: £9,761.34.

Gunning even manages to obtain details of a personal account of Sophie Rhys-Jones’ at the same branch.

This account has a zero balance.  

None of this information ever appears in the Mirror.

It’s a fishing expedition.

But the Scotland Yard assessment of the case — seen by Press Gang — is clear criminal offences have been committed:  

” … the detail of Rhys-Jones’ bank account — both business and personal — prove evidence of procuring the disclosure to another of personal data.”

Rees “… also commits the offence of selling the information …”

There is no mention of Gary Jones — the man who commissions the criminal activity.

The report concludes:

“It is obvious that additional enquiries would have to be made to confirm details but the basic points to prove are present.”

Scotland Yard takes no further action. 

A spokeswoman for Prince Edward and Sophie, Countess of Wessex declined to comment. 

Murray Harkin told Press Gang he will be instructing solicitors to ask the Metropolitan Police to release the documents it holds.

He added:

“if a criminal offence has been undertaken then I believe that the people responsible should be accountable.”

The Daily Mirror’s long-standing comment on the use of Jonathan Rees is that “many years ago some of our journalists used Southern Investigations.”

“They were last used in 1999.”

“Trinity Mirror’s position is clear. Our journalists work within the criminal law and the PCC code of conduct.”

SCOTLAND YARD THE DOCUMENTS on which this article is based come from the Met's Operation Two Bridges which targeted Jonathan Rees in 1998-1999. They were first leaked in 2002 by senior figures in the Met to the former BBC reporter Graeme McLagan after Rees was gaoled for conspiring to plant drugs on an innocent woman. Since then many reporters have also obtained copies of the material. Photo: Rebecca Television

SCOTLAND YARD
THE MET have been sitting on the documents used in this article ever since 1999.  They come from Operation Two Bridges which targeted Jonathan Rees in 1998-1999. Some of them were first given by senior figures in the Met to the then BBC Home Affairs correspondent Graeme McLagan in 2002 after Rees was gaoled for conspiring to plant drugs on an innocent woman. 
Photo: Rebecca Television

♦♦♦

THE MIRROR’S relationship with Jonathan Rees was shattered on 29 September 1999.

On that day, detectives arrested Rees in connection with a conspiracy to deprive an innocent woman of her child.

Police had bugged Rees’ office in Thornton Heath, south London and heard the plot unfold.

A client of Rees was involved in a custody battle with his estranged wife.

Rees suggested arranging with a corrupt police detective to plant cocaine in her car.

Police were watching as the drugs were planted and the woman arrested.

Then they pounced.

In raids across London, detectives gathered the evidence on which this article is based.

Rees was gaoled for six years for his part in the cocaine conspiracy.

When he appealed against the length of his sentence, it was increased it to seven.

Scotland Yard also wanted to charge Sunday Mirror reporter Doug Kempster for paying a police officer for confidential information.

Piers Morgan had no connection with the Sunday Mirror.

The CPS decided not to prosecute.

Despite this scare, the Daily Mirror’s addiction to the “dark arts” continued.

PIERS MORGAN THE FORMER Daily Mirror editor in happier times with his old friends Andy Coulson (gaoled) and Rebekah Brooks (acquitted). Six days ago — on April 21 — Morgan was interviewed by Scotland Yard detectives from Operation Golding about phone hacking while he was Mirror editor. This followed an earlier interview at the end of 2013. He was not arrested on either occasion. As well as his ITV programme Life Stories, Morgan is also US

PIERS MORGAN
THE FORMER Daily Mirror editor in happier times with his old friends Andy Coulson (ex-editor News of the World: gaoled) and Rebekah Brooks (ex-editor The Sun: acquitted). Six days ago — on April 21 — Morgan was interviewed under caution by Scotland Yard detectives from Operation Golding investigating phone hacking while he was Mirror editor. This followed an earlier interview at the end of 2013. He was not arrested on either occasion. As well as his ITV programme Life Stories, Morgan is currently US “editor-at-large” for the Daily Mail online website. He does not comment on Press Gang articles …
Photo: Richard Young / Rex

The paper simply turned to another private eye — Steve Whittamore.

Illegal news-gathering continued for a further three years until Whittamore was arrested in 2003.

For more on this, see the Press Gang article Whodunnit? 

♦♦♦

Published: 27 April 2015
© Press Gang 

♦♦♦ 

NEXT
DOWN IN THE GUTTER
A FORENSIC examination of Piers Morgan’s celebrated appearance on Desert Island Discs in 2009. He told presenter Kirsty Young phone hacking was one of the “down in the gutter” tactics used on the Daily Mirror.

What he didn’t tell her was that she, too, had been a target of the paper’s “gutter” tactics. In 1998 the paper mounted a surveillance operation to prove she was having an affair with a married man.
The story is also pregnant with the possibility it was based on phone hacking …

 ♦♦♦

JOIN THE GANGBUSTERS …
THERE’S A need for a trustworthy website to expose rogue reporters. Press Gang is that outlet — fearless and fair. Join us by becoming a gangbuster and help pay some of our expenses. Just hit the button …

Donate Button with Credit Cards

CORRECTIONS
Please let us know if there are any mistakes in this article — they’ll be corrected as soon as possible.

RIGHT OF REPLY
If you have been mentioned in this article and disagree with it, please let us have your comments. Provided your response is not defamatory we’ll add it to the article.

THE MACUR REVIEW: A LOSS OF CONFIDENCE

March 10, 2015

IT’S NOW more than two years since David Cameron announced a Review of the North Wales Child Abuse Tribunal.

Since then the Review — headed by Lady Justice Macur — has slipped beneath the media radar.

But after 26 months without any sign of a report, concern is growing that a whitewash may be on the way.

One of the major critics of the original Tribunal, chaired by the late Sir Ronald Waterhouse, has now withdrawn from the process.

Press Gang’s sister website, Rebecca Television, has asked Lady Macur to withdraw its statements from the Review.

The following article, posted on the Rebecca Television website this morning, explains the reasons why …

♦♦♦

THE MACUR REVIEW: A LOSS OF CONFIDENCE

rebecca_logo_04

REBECCA TELEVISION has withdrawn from the Macur Review of the 1996-1999 North Wales Child Abuse Tribunal.

In a letter to Home Secretary Theresa May, Editor Paddy French expressed concern at the delay in publishing a report.

It’s more than two years since the Review was set up.

French said: “the passage of time has seriously eroded my confidence in the process.”

Prime Minister David Cameron announced the review in November 2012.

THERESA MAY WHEN THE Home Secretary made a statement in the Commons in November 2012 about the North Wales child abuse scandal, she was asked by Labour MP Paul Flynn to examine claims made by Rebecca Television. She told him the inquiry "will, indeed, be looking at that historical evidence. That is part of the job they will be doing." Photo: PA

THERESA MAY
WHEN THE Home Secretary made a statement in the Commons in November 2012 about the North Wales child abuse scandal, she was asked by Labour MP Paul Flynn to examine claims made by Rebecca Television. She told him the police “will, indeed, be looking at that historical evidence. That is part of the job they will be doing.”
Photo: PA

It followed the BBC Newsnight report which identified Lord McAlpine as a paedophile involved in the North Wales child abuse scandal.

When the allegation was later shown to have been a mistake, the government decided to carry on with the Review.

In November 2012 Justice Secretary Chris Grayling appointed Lady Justice Macur to lead it. 

Today, 26 months later, her report is unfinished and is unlikely to be complete before the election …

♦♦

WHEN JUSTICE Minister Chris Grayling set up the Macur Review, he gave it two tasks.

The first was to look at the “scope” of the North Wales Child Abuse Tribunal, chaired by retired High Court judge Sir Ronald Waterhouse.

The second was to see if “any specific allegations of child abuse falling within the terms of reference were not investigated …”

Lady Macur was to make recommendations if she felt any further action was needed.

Long before the Macur Review, Rebecca Television was arguing — in an investigation called The Case Of The Flawed Tribunal — that the inquiry had not been fit for purpose.

SIR RONALD WATERHOUSE THE RETIRED High Court judge chaired the £14 million Tribunal which held more than 200 days of hearings and heard the testimony of 264. But one important witness was never heard ...

SIR RONALD WATERHOUSE
THE RETIRED High Court judge chaired the £14 million Tribunal which held more than 200 days of hearings and heard the testimony of 264 people. But one important witness was never heard …

One of the key cases that led to that conclusion was the way the Tribunal handled the case of convicted paedophile John Allen.

Allen and his family owned the Bryn Alyn complex of private children’s homes in the Wrexham area.

Between 1974 and 1991 local authorities all over England and Wales paid him more than £30 million to take care of some of their more difficult children.

In February 1995 — a year before the Tribunal was set up — Allen had been gaoled for six years after a jury convicted him of indecently assaulting six boys in his care.

But the Waterhouse Tribunal did not investigate Allen properly.

It prevented a key witness from giving evidence that he had reported serious allegations of sexual abuse against Allen more than a decade before he was brought to book.

Not only did the Tribunal suppress his evidence, it also censored television journalists from reporting what he had to say.

In 1997, while the Tribunal was sitting, officials learned that the broadcaster HTV was preparing a programme about Allen.

The channel’s current affairs programme, Wales This Week, had interviewed John Allen’s number two, Des Frost.

Frost told journalists that in the early 1980s he had gone to the police about allegations that Allen was abusing boys.

This was more than ten years before Allen was finally convicted.

He claimed to have contacted detectives in Cheshire because he was concerned that if he went to the North Wales Police John Allen might get to hear of it.

Frost feared he might lose his job.

DES FROST THE FORMER social worker and lay preacher, John Allen's No 2 in charge of finance, was never called to give evidence to the Tribunal. Frost claimed he reported allegations against Allen many years before the paedophile was brought to book. The failure to test his evidence means the Tribunal's conclusion that "there was no significant omission by the North Wales Police in investigating the complaints of abuse to children in care" is suspect.

DES FROST
THE FORMER social worker and lay preacher — joint second-in-command at Bryn Alyn — was never called to give evidence to the Tribunal. Frost claimed he reported allegations against Allen many years before the paedophile was brought to book. The failure to test his evidence means the Tribunal’s conclusion that “there was no significant omission by the North Wales Police in investigating the complaints of abuse to children in care” is suspect.

When the Tribunal heard that Frost had been interviewed by Wales This Week, officials warned the programme’s lawyer not to reveal any new allegations.

This would be considered contempt of court.

Journalists believed that this was because the Tribunal was planning to call Frost as a witness and hear his testimony.

One of those reporters was Rebecca Television editor Paddy French who was working for the programme as a freelance at the time.

The allegations were removed from the programme.

In the same week that broadcasters were muzzled, North Wales Police took a statement from Frost.

Frost believed they were acting on behalf of the Tribunal — but the Tribunal only employed ex-police officers from other other forces.

Frost was never called to give evidence to the Tribunal.

The Macur Review was asked to see if “any specific allegations of child abuse falling within the terms of reference were not investigated …” .

Clearly, Des Frost’s allegation that he reported child abuse by John Allen in the early 1980s was not investigated by the Tribunal.

The fact that the Tribunal also prevented HTV from broadcasting his allegations deepens suspicion.

JOHN ALLEN THE OWNER of a profitable string of private children's homes in the Wrexham area, Allen is one of the central characters in the North Wales child abuse scandal. He groomed young boys — abusing many — and extended his influence on some of them by providing an "after-care" service in London and Brighton.

JOHN ALLEN
THE OWNER of a profitable string of private children’s homes in the Wrexham area, Allen is one of the central characters in the North Wales child abuse scandal. He groomed young boys — abusing many — and extended his influence with some of them by providing an “after-care” service in London and Brighton.

Was there collusion by the Tribunal, or some of its officials, and North Wales Police to suppress Frost’s testimony to protect the reputation of the force?

♦♦♦

AT THE same time the Macur Review was set up, Home Secretary Theresa May announced a parallel police inquiry.

This became Operation Pallial, carried out by the newly-created National Crime Agency.

Like Macur, Pallial was to carry out an initial assessment, followed by recommendations.

Palliall was asked to “assess any information recently received” about historic child abuse in care and “review the historic police investigations into such matters”.

In stark contrast to the Macur Review, Pallial completed its review in just six months.

In April 2013, it presented its initial report.

It found “no evidence of systemic or institutional misconduct by North Wales Police …”

NORTH WALES POLICE OPERATION PALLIAL cleared the force of any historic misconduct in relation to its investigation of child abuse allegations. But did Operation Pallial examine the circumstances which led to Des Frost being interviewed by its officers in 1997 — the week broadcasters at HTV were being censored by the Tribunal? In 2010 Rebecca Television asked the current chief constable, Mark Polin, this question but he never answered. We also wrote to the officer who carried out the interview. He didn't reply, either. An official complaint against this officer found that the response should come from a senior figure. In the end, there was no explanation from anyone in the force.  Photo; Rebecca Television

NORTH WALES POLICE
OPERATION PALLIAL cleared the force of any historic misconduct in relation to its investigation of child abuse allegations. But did Operation Pallial examine the circumstances which led to Des Frost being interviewed by its officers in 1997 — the week broadcasters at HTV were being censored by the Tribunal? In 2009 Rebecca Television asked the current chief constable, Mark Polin, about why this interview took place and what happened to the officer’s report. He didn’t answer. We also wrote to the officer who took the statement from Frost. He didn’t reply. An official complaint against this officer found he had raised the issue with his superiors  expecting that “ownership to respond … rest with someone higher in the organisation.” No response was ever received … 
Photo: Rebecca Television

But it found “significant evidence of systemic and serious sexual and physical abuse …” and recommended a full-scale criminal investigation.

Since then, Pallial has charged 15 people with child abuse offences while a further 18 remain on bail while investigations continue.

One of those charged was John Allen who stood trial for the second time.

In December 2014 he was gaoled for life after a jury convicted him of abusing 18 boys and one girl, aged between seven and 15.

The offences were committed between in the 1970s and 1980s.

The allegations Des Frost claimed he brought to the attention of the police date from the 1970s …

♦♦♦

THE MACUR Review was also asked to look at the “scope” of the Waterhouse Tribunal.

The Tribunal was established in 1996 by William Hague who was in the Cabinet as Welsh Secretary.

He persuaded John Major to allow him to set up the inquiry, the first ever Tribunal into child abuse.

But there were conditions.

Thatcher did not want the proceedings to spill over into England — she feared it would become an over-arching inquiry into child abuse throughout England and Wales.

(This is what is happening — nearly two decades later — with the current major inquiry headed by New Zealand Judge Lowell Goddard .)

As a result, the remit of the Waterhouse Tribunal was tightly drawn by the Thatcher government.

BRYN ALYN  DURING THE Tribunal, John Allen admitted that he had spent £180,000 in presents for some of the boys at Bryn Alyn, both during and after their time in care. On one occasion, police questioned him about a letter addressed to him which had been found in the pocket of an ex-resident. The tone of the letter — which has disappeared — suggested blackmail but Allen managed to reassure police that there was an innocent explanation.

BRYN ALYN
DURING THE Tribunal, John Allen admitted that he had spent £180,000 in presents for some of the boys at Bryn Alyn, both during and after their time in care. On one occasion, the Tribunal heard, English police found a letter addressed to him which had been found in the pocket of an ex-resident. The tone of the letter — which has disappeared — suggested blackmail but North Wales Police decided there was an innocent explanation …

It was “to enquire into the abuse of children in care in the former county council areas of Gwynedd and Clwyd since 1974”.

In other words, it was restricted to North Wales.

This prevented the Tribunal from examining another deeply disturbing aspect of the John Allen affair.

As previously noted, John Allen was paid more than £30 million to look after children in his care.

Much of this money did not go into conventional child care.

Some of it went on an expensive country mansion, a villa in the south of France and a half share in a Mediterranean yacht called Dualité.

Allen also used enormous sums of petty cash which were never properly accounted for.

But, significantly, a slice of this money also went into an informal “after-care” system for selected boys when they left Bryn Alyn.

This included the provision of accommodation in Brighton and London.

Some of the young men who lived in these properties became homosexual prostitutes.

During his first trial in February 1995, John Allen went “missing” for a week.

He turned up in Oxford claiming he’d suffered a nervous breakdown.

He claimed he could not remember anything about the previous seven days.

During the week he was missing, a former Bryn Alyn resident, Lee Johns, was found dead at his home in Brighton.

Johns had given evidence during the trial that he had been abused by Allen.

LEE JOHNS A TROUBLED inmate of Bryn Alyn, Lee Johns became a rent boy after he left the children's home. He gave evidence in the trial of John Allen in 1995 but he was found dead in his Brighton flat shortly afterwards. The inquest returned a verdict of suicide.

WATERHOUSE TRIBUNAL
THE FORMER council chamber in North Wales used by the Tribunal during its public hearings. One issue the Tribunal could not investigate was the significance of John Allen’s informal “after-care” service for some ex-residents in London and Brighton. Events outside of North Wales were forbidden territory …  

The jury later decided that Johns was one of the six boys Allen had indecently assaulted.

The inquest verdict on Lee Johns was suicide — but his family are convinced he did not take his own life.

Three years earlier, Lee Johns had been seriously injured in a catastrophic fire at a flat in Hove.

Five people died in the blaze which had been started deliberately.

Among those who died was Lee’s younger brother Adrian, another former resident of Bryn Alyn.

Both Lee and Adrian had previously lived in properties provided by John Allen.

The man who started the blaze killed himself a few days after the fire.

These events were not examined by the Tribunal because they took place outside North Wales.

Lady Macur was asked to assess if the “scope” of the Waterhouse Tribunal was adequate.

Again, the questions surrounding John Allen’s informal “after-care” service in London and Brighton system show it was not.

♦♦♦

THERE IS another reason why Rebecca Television believes the Waterhouse Tribunal was suspect.

In 2000, shortly after his report was published, Paddy French had a confidential three hour meeting with Sir Ronald Waterhouse at his home near Ross-on-Wye.

French laid out much of the criticism which was later revealed in the Rebecca Television articles.

The meeting was off-the-record.

It was not until Waterhouse died in May 2011 that French was able to reveal what had taken place.

SECRET CORRESPONDENCE SIR RONALD WATERHOUSE exchanged letters with Paddy French after their meeting in 2000. But he insisted that their meeting and the letters remain secret. It wasn't until his death in May 2011 that French was free to reveal what had happened between them.

SECRET CORRESPONDENCE
SIR RONALD WATERHOUSE exchanged letters with Paddy French after their meeting in 2000. But he insisted that the interview and the letters remain secret. It wasn’t until his death in May 2011 that French was free to reveal what had happened between them.

“I felt he was shocked by what I told him,” said French, “particularly the allegations concerning Des Frost.”

“But was he shocked because he and the Tribunal had been found out — or was it because he had been wrongly persuaded Frost had nothing to say?”

“He wouldn’t say.”

In 2006 Waterhouse attended a function and had a revealing conversation with Welsh Assembly member Mark Isherwood.

“He told me quite clearly,” Isherwood said, “that he now accepted that documentation had been withheld from the Tribunal which he chaired,”

But whatever Waterhouse knew or felt, he took to the grave.

♦♦♦

REBECCA TELEVISION warned the Macur Review it was considering pulling out of the process.

On February 18 editor Paddy French wrote to say he was “considering withdrawing my statements” to the Review and writing to the Home Secretary to explain why such a “drastic step” was necessary.

“It’s clear to me that the Review will not be complete by the election and, by the time the new administration is in place and able to take a decision, we will be into the autumn”.

“This creates a surreal situation where a Review, designed to see if there ought to be a re-examination of the territory explored by Waterhouse, will have taken almost as long as the original Tribunal itself.”

LORD LEVESON BRIAN LEVESON managed to hold public hearings where more than 300 witnesses gave evidence and produce a 2,000 page, three volume report in just 17 months. The Macur Review is still not complete after 26 months.  Photo: PA

LORD LEVESON
BRIAN LEVESON managed to hold public hearings where more than 300 witnesses gave evidence and produce a 2,000 page, three volume report in just 17 months. The Macur Review is still not complete after 26 months.
Photo: PA

To date, the Review has taken 26 months — the Tribunal was complete in 39 months.

Operation Pallial, as has already been pointed out, produced its initial review within six months.

Lord Leveson, who also had the problem of a parallel criminal investigation to contend with, held a long series of public hearings and still managed to produce a three volume report in less than a year and a half.

Lady Macur answered by saying she had seen and “noted” the contents of the February 18 email.

On February 20 Paddy French emailed to ask her “to formally remove my statements from the Review’s report.”

He also asked her to “include my reasons … in the Review’s report when it is finally complete.”

On February 24 a spokeswoman for Lady Macur emailed to say:

“The Judge has asked me to let you know that she has found no reason to refer to your submissions specifically in her report and therefore it will not be necessary to indicate why she has removed them.”

“The report will indicate that you have made contact with the review and that you attended an interview with Lady Justic Macur.”

On March 2 French wrote to Home Secretary Theresa May.

LADY MACUR A JUDGE in the Family Division of the High Court when she was appointed, she is now one of the senior members of the judiciary. Nine months after the Review was set up, she was appointed one of the 42 Court of Appeal judges. The position brings with a seat on the Privy Council . Photo: judiciary.gov.uk

LADY MACUR
A JUDGE in the Family Division of the High Court when she was appointed, she is now one of the senior members of the judiciary. Nine months after the Review was set up, she was appointed one of the 42 Court of Appeal judges. The position brings with a seat on the Privy Council.
Photo: judiciary.gov.uk

He noted that in a November 2012 press release Lady Macur had said:

“I am grateful to be assured that sufficient resources will be made available to me to conduct this Review which will be thorough and expeditious.”

French said:

“I feel the Review has left itself open to the charge that, whatever else it is, it is not ‘expeditious’.”

He added:

“I would now ask you to consider referring my concerns — and those of others — directly to Justice Lowell Goddard.”

Goddard is the chair of the Independent Inquiry into Child Sex Abuse.

A copy of French’s letter was sent to Justice Minister Chris Grayling, who commissioned the Macur Review, to Welsh Secretary Stephen Crabb and to Lady Macur herself.

No responses had been received by the time this article was posted.

♦♦♦

WHAT IS deeply disturbing about the Macur Review comes down to one single point.

Lady Macur must have been in a position to know which way her report was going to go within a year.

If, at that point, she had concluded the Waterhouse Tribunal had failed to carry out its task properly, then she was in a position to produce a report calling for an inquiry to take the process further.

Her report did not have to be totally comprehensive — all it needed to do was to present the evidence gathered to support that conclusion.

The work of comprehensively sifting all the evidence could have been left to the new inquiry.

In other words, a report calling for a new inquiry could have been published within a year or eighteen months.

If, however, she had concluded that the Waterhouse Report could not be challenged, then a different scenario presents itself.

She would then want to produce a more detailed report demonstrating that the criticisms of the Tribunal — including those presented by Rebecca Television — were unfounded.

This would inevitably take longer.

There might, though, be compelling reasons for dragging the process out even longer.

The first is that, if the Macur Review published a report clearing Waterhouse, it is likely there would  considerable criticism.

LOST IN CARE A massive 937 page report — but was it fit for purpose?

LOST IN CARE
THE MASSIVE 937 page report of the Waterhouse Tribunal — but was it fit for purpose? As well as the failure to hear the Des Frost allegations, Rebecca Television also pointed out shortcomings in the inquiry’s handling of freemasonry.

Such criticism might persuade Home Secretary Theresa May to refer the Waterhouse issue to the new Goddard Inquiry.

Theresa May has proved a tough Home Secretary.

She appears to want to avoid any suggestion that’s there’s been any kind of cover-up on her watch.

This leads to speculation that Lady Macur and the judicial establishment of England and Wales might not be happy presenting the Review report with her still in office.

In these circumstances, perhaps, it might be better for Lady Macur to take so long producing her report that by the time it was published a more docile Home Secretary might be in place.

The Waterhouse issue could then be quietly laid to rest …

♦♦♦
Published: 11 March 2015
© Rebecca Television
♦♦♦

NOTES
1
Paddy French’s statement to the Review was dated 13 January 2013.
He met Lady Macur at the Royal Courts of Justice on 5 March 2013.

2
More details of the Rebecca Television criticism of the North Wales inquiry — The Case Of The Flawed Tribunal — can be found here on the Investigations page.

♦♦♦

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ROGUE JOURNALISTS & BENT COPPERS

February 19, 2015

corrupt_header_02

IN JULY last year, Home Secretary Theresa May set up an independent panel to investigate the unsolved murder of Daniel Morgan.

She appointed Baroness Nuala O’Loan, former Northern Ireland Police Ombudsman from 2000 to 2007, to head the inquiry.

The Home Secretary said:

“The remit of the Panel is to shine a light on the circumstances of Daniel Morgan’s murder, its background and the handling of the case over the period since 1987.”

“Serious allegations of police corruption have surrounded the investigations into the murder of Daniel Morgan.”

THE STORY SO FAR ... JONATHAN REES (left) the partner of the murdered Daniel Morgan — found with an axe buried in his face in a pub car park in 1987 —has long been a suspect in the case. The previous article, An Axe To Grind, told of the dispute between the two men over Rees' claim that he had been mugged of £18,000. One of the first police officers on the murder investigation was detective sergeant Sid Fillery (right) who did not tell his superiors he was a personal friend of Rees. At the inquest, a witness sensationally claimed Rees told him he was looking for someone to murder his partner. It was also revealed that Sid Fillery had retired from Scotland Yard — and stepped into the dead Daniel Morgan's shoes as Rees' new partner. In 2008 Rees and three other men were charged with the murder and Fillery with perverting the course of justice but the case never reached a jury, finally collapsing in March 2011. Although the judge, Mr Justice Maddison, noted that police had "ample grounds to justify the arrest and prosecution of the accused", all five defendants have launched a £4 million compensation case against the Metropolitan Police Service. Photos: PA

THE STORY SO FAR …
JONATHAN REES (left) the partner of the murdered Daniel Morgan — found with an axe buried in his face in a pub car park in 1987 — has long been a suspect in the case. The previous article, An Axe To Grind, told of the dispute between the two men over Rees’ claim that he had been mugged of £18,000. One of the first police officers on the murder investigation was detective sergeant Sid Fillery (right) who did not tell his superiors he was a personal friend of Rees. At the inquest, a witness sensationally claimed Rees told him he was looking for someone to murder his partner. It was also revealed that Sid Fillery had retired from Scotland Yard — and stepped into the dead Daniel Morgan’s shoes as Rees’ new partner. In 2008 Rees and three other men were charged with the murder and Fillery with perverting the course of justice but the case never reached a jury, finally collapsing in March 2011. Although the judge, Mr Justice Maddison, noted that police had “ample grounds to justify the arrest and prosecution of the accused”, all five defendants have since launched a £4 million compensation case against the Metropolitan Police Service.
Photos: PA

“I have made it clear that the Independent Panel should leave no stone unturned in its pursuit of the truth.”

This was, in fact, Theresa May’s second attempt to get the process under way.

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For 30 years the Daniel Morgan murder was largely ignored by the UK newspapers and broadcasters.
In part, this was because the News of the World was in a commercial relationship with Southern Investigations.
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She’d originally set up the inquiry in May 2013 but the judge she chose to head it — Sir Stanley Burnton — controversially stepped down six months later for what were described as “personal reasons”.

In fact, he lost the confidence of some of his fellow panel members because he took decisions without consulting them.

One of the areas Baroness O’Loan will be examining is the relationship between tabloid journalists and police detectives.

In this second part of The No 1 Corrupt Detective Agency, Press Gang charts the rise of Southern Investigations as one of the market leaders in the illegal sale of valuable confidential Scotland Yard information.

Some of this story is already in the public domain.

But Press Gang has also obtained dramatic new material from police sources.

These contacts received no payment.

♦♦

AFTER THE sensational events surrounding Daniel Morgan’s murder died away, Southern Investigations began to expand a profitable part of the business.

The dead man’s former partner Jonathan Rees and retired police detective sergeant Sid Fillery became one of the major clearing houses of confidential information provided by corrupt police officers.

They sold the information to Britain’s tabloid press, especially the News of the World.

DANIEL MORGAN THE UNSOLVED murder of Daniel Morgan has cast a long shadow on the reputation of Scotland Yard. As Tory MP Tracey Crouch has said: "There is something about the Daniel Morgan murder that makes the Establishment very nervous ... it is important we find out what it is and get justice for Daniel and his family." Photo: Morgan Family

DANIEL MORGAN
THE UNSOLVED murder of Daniel Morgan casts a dark shadow on the reputation of Scotland Yard. As Tory MP Tracey Crouch has said: “There is something about the Daniel Morgan murder that makes the Establishment very nervous … it is important we find out what it is and get justice for Daniel and his family.”
Photo: Morgan Family

Guardian reporter Nick Davies, in his book Hack Attack, stated:

“In a single year, 1996-97, the News of the World paid Southern a total of more than £160,000.”

Fillery later gave a revealing interview about the agency’s activities for the 2004 book Untouchables.

“Sid Fillery,” wrote authors Michael Gillard and Laurie Flynn, “is a big jovial, Toby jug of a man.”

“With sad spaniel’s eyes and a laugh as large as the London Palladium, he seems on first impressions as if he could have stepped out of an episode of Dixon of Dock Green.”

Fillery said one of the agency’s key contacts was News of the World reporter Alex Marunchak.

In 1989, two years after the murder of Daniel Morgan, Marunchak came to the Victory pub in Thornton Heath to talk to the partners about doing business with the paper.

Rees and Fillery quickly built up a profitable business selling information to News of the World reporters.

They were even involved with the paper’s now-disgraced investigative reporter Mahzer Mahmood.

On one occasion, Fillery dressed up as an English private secretary while Mahmood played his role of the ‘fake sheik’.

They were also involved in the story about Paddy Ashdown’s affair with a House of Commons secretary.

Documents stolen from the office of the Liberal politician’s solicitor were being touted around Fleet Street.

Southern Investigations were asked by Alex Marunchak to meet the man who was trying to sell them.

But a corrupt Scotland Yard detective, Duncan Hanrahan, who was in the Southern Investigations office at the time, sabotaged the meeting.

Hanrahan had been one of the detectives who “investigated” the robbery of Jonathan Rees back in 1986 when muggers allegedly took £18,000 off him.

(See Part One: An Axe To Grind for more on this.)

CORRUPT COPPER DUNCAN HANRAHAN came to grief when he was caught red-handed trying to corrupt a member of Scotland Yard's anti-corruption team. In 1999 he was gaoled for eight years and four months after pleading guilty to 11 offences, including conspiracy to pervert the course of justice. Photo: PA

CORRUPT COPPER
DUNCAN HANRAHAN came to grief when he was caught red-handed trying to corrupt a member of Scotland Yard’s anti-corruption team. In 1999 he was gaoled for eight years and four months after pleading guilty to 11 offences, including conspiracy to pervert the course of justice.
Photo: PA

Authors Gillard and Flynn say Hanrahan told them he had a grudge against Marunchak after he gave him information which turned up in another newspaper.

Hanrahan believed Marunchak, instead of using the story in the News of the World and paying him, had given the information to a rival newspaper and pocketed the proceeds himself.

In retaliation, Hanrahan tipped off the City of London police who got to the rendezvous with the man selling the Ashdown documents before Southern Investigation’s man could get there.

♦♦♦

IN THE 1990s, Southern Investigations were asked to investigate allegations that some Murdoch journalists were moonlighting and selling information to rivals.

At the same time, the News of the World had spies on its main tabloid rivals.

In 1994, for example, Piers Morgan was News of the World editor.

In his book The Insider, Morgan wrote:

“… we have one of the Sunday Mirror’s journalists on our pay roll, bunging him £250 a week for a rundown of their stories, and more if he gives us a big one.”

“It’s a disgrace, of course, and totally unethical.”

“But very handy.”

“To make it even more amusing, he’s their crime correspondent.”

“We also, unbelievably, have a similar source on the Sunday People, a secretary who does the same for a bit less money.”

“So for under £500 a week we always know what our competitors are doing.”

In November 1995, when Piers Morgan became editor of the Daily Mirror, he moved against the spies.

“The Sunday Mirror journalist and the Sunday People secretary have been fired.”

“I’d given them a month to stop and incredibly they had just carried on.”

“So I fired them.”

TABLOID SPIES PIERS MORGAN was editor of the News of the World when the paper was paying spies on rival Mirror group papers.  Photo: PA

TABLOID SPIES
PIERS MORGAN was editor of the News of the World when the paper was spying on rival Mirror group papers.
Photo: PA

As the 1990s progressed, the links between the News of the World reporters and Southern Investigations deepened.

In 1996, Alex Marunchak and Greg Miskiw, another News of the World reporter, became directors of an import / export company called Abbeycover.

Abbeycover, which apparently imported alcohol from eastern Europe, had its registered address at Southern Investigations’ Thornton Heath offices.

(In July 2014 Greg Miskiw was given a six months prison sentence after pleading guilty to phone hacking in the same trial that saw the conviction of Andy Coulson.)

And the money wasn’t just flowing from the News of the World — Southern Investigations were also paying Marunchak for what it called “consultancy services”.

In 1998, for example, the News of the World reporter was allegedly paid hundreds of pounds.

No-one is prepared to say what the reporter did in return for these “consultancy services”.

There have also been allegations that his children’s school fees were occasionally paid by the agency and that his credit card was cleared by Rees and Fillery.

Marunchak denies all these allegations (see note 4).

♦♦♦

IN THE late 1990s Scotland Yard made a determined bid to stop tabloid reporters corrupting serving officers to get their hands on confidential police information.

Its secret anti-corruption team, CIB3, targeted Southern Investigations in Operation Two Bridges (originally called Operation Nigeria).

There was evidence that a group of corrupt serving and retired police officers were passing valuable information from inside Scotland Yard to the agency.

BUGGED JONATHAN REES caught by secret police cameras outside the offices of Southern Investigations. The premises had also been broken into and bugs planted ...  Photo: PA

BUGGED
JONATHAN REES caught by secret police cameras outside the offices of Southern Investigations. The premises had also been broken into and bugged …
Photo: PA

At the same time, the murder of Daniel Morgan remained unsolved and the family’s campaign against the Metropolitan Police was embarrassing the force.

“I find it incredible that it took ten years for the Met to install a bug in their offices — why wasn’t it done years earlier?” asks Alastair Morgan.

In his book, Bent Coppers, former BBC reporter Graeme McLagan noted:

“Southern [Investigations] were also starting to try and undermine the Yard’s crackdown on corruption by spreading stories and rumours about some of those involved with it…”

In June 1999 CIB3, the Met’s anti-corruption unit, launched Operation Two Bridges.

They installed a bug in the offices of Southern Investigations in the south London suburb of Thornton Heath.

Documents written by anti-corruption detectives were later leaked to McLagan.

One of these stated:

“For a considerable period of time, there has been much spoken about DS Sid Fillery and his business partner … Rees being involved in corrupt activities involving serving police officers.”

Another stated:

” … the intelligence indicates that Fillery and Rees are corrupters of police officers and participants in organised crime.”

Rees and Fillery, the report went on:

“… are alert, cunning and devious individuals who have current knowledge of investigative methods and techniques which may be used against them.”

“They use some of the techniques in their own daily activities.”

Between June and September 1999, anti-corruption detectives monitored the day-to-day business of the detective agency.

Officers listened as Southern Investigations obtained information about the royal family from police officers to sell to newspapers.

Transcripts revealed that News of the World reporter Alex Marunchak was one of the agency’s major clients.

In one phone conversation, in July, Rees said the paper owed Southern Investigations £7,555.

In this period the agency sent 66 invoices to the News of the World — worth £13,000 — all but one of them addressed to Alex Marunchak.

ALEX MARUNCHAK A KEY News of the World executive for several decades, Marunchak was an important customer for Southern Investigations.  Photo: BBC

ALEX MARUNCHAK
A KEY News of the World executive for several decades, Marunchak was an important customer for Southern Investigations. Marunchak comes from a Ukrainian family and for many years acted as an interpreter for Scotland Yard.
Photo: BBC

In September 2002, Graeme McLagan wrote an article for the Guardian.

He revealed that Rees had sold information to News of the World reporter Alex Marunchak about the criminal Kenneth Noye, convicted of the M25 road rage murder.

When McLagan asked Marunchak if he disputed that he had bought information from Rees, Marunchak said:

“You haven’t heard me admit it.”

♦♦♦

ONE OF the corrupt police officers who was bugged talking to Southern Investigations was a detective constable called Tom Kingston.

He was later gaoled for three and a half years for stealing and selling amphetamines.

The bugs revealed Kingston had a police contact who was prepared to sell information.

“It took anti-corruption detectives little effort,” wrote McLagan in his book Bent Coppers, “to work out that Kingston’s contact was one of his best friends, and that he was passing, through the suspended detective, sensitive information from a confidential police publication called the Police Gazette.”

“Kingston was then selling it to a reporter with a Sunday tabloid newspaper, a regular visitor to Southern Investigations.”

McLagan did not name this journalist but Press Gang has established it was Doug Kempster, then a reporter on the Mirror-owned Sunday Mirror.

Before joining the Mirror stable in 1996, Kempster had worked for the News of the World.

McLagan did not name the police officer but Press Gang understands it was Paul Valentine, at the time attached to the Special Escort Group based in Barnes.

In 2002 McLagan asked Kempster, who was working as a government press officer by then, about his links with Southern.

Kempster told him:

“It’s something we just don’t comment on.”

Some of the information obtained by Kempster also found its way to another journalist, Gary Jones on the Daily Mirror.

Jones also bought information directly from the agency.

(Jones will be familiar to Press Gang readers from the Whodunnit? article in the series about Piers Morgan, A Pretty Despicable Man.

Jones was the News of the World crime reporter whose contacts gave him access to a confidential Scotland Yard report in 1994.

This sensationally revealed that Princess Diana had been making anonymous phone calls to London art dealer Oliver Hoare.

GARY JONES A FORMER News of the World crime reporter, Jones followed Piers Morgan to the Daily Mirror. Today, he's a senior executive editor at the Mirror Group. He's always declined to talk to Press Gang.  Photo: Rebecca Television

GARY JONES
A FORMER News of the World crime reporter, Jones followed Piers Morgan to the Daily Mirror. He was one of the most important customers of Southern Investigations. Currently a senior executive editor at the Mirror Group, he’s always declined to talk to Press Gang
Photo: Rebecca Television

It is not known if Southern Investigations were involved in this tale.)

In July 1999 Rees and Kingston were overheard discussing an officer in the diplomatic protection squad whose firearms certificate was withdrawn because he was taking steroids.

The information led to an article written by Gary Jones.

In March 2011 the BBC Panorama programme uncovered another extract from the transcripts generated in the bugging operation at Southern Investigations.

The programme revealed that, in July 1999, there was an angry exchange between Rees and Gary Jones of the Daily Mirror.

The reporter was under pressure from his accounts department to give more details about the payments he was authorising to Southern Investigations.

Rees insisted that he wasn’t going to provide any more details:

“What we’re doing is illegal, isn’t it?” he said.

“You know I don’t want people coming in and nicking us for criminal offences.”

♦♦♦

JONATHAN REES was given the codename “Avon” during the bugging operation of Southern Investigations.

The transcripts show the relationship between Alex Marunchak of the News of the World and the agency was deep but troubled.

On one occasion, in 1999, Marunchak demanded to know what information the agency were selling to his rival, Doug Kempster of the Sunday Mirror.

In a conversation with Sid Fillery, Rees said he told the News of the World reporter it was none of his business.

When Marunchak hinted that if Southern were engaged in illegal activity, the firm risked being raided by the police, Rees took this as a threat.

He told Fillery that, if Southern or any of its contacts were raided by the police, he would tell the News of the World the names of its reporters who were taking backhanders from Southern Investigations:

“I’ll say your fucking paper will get fucking tipped off about who gets backhanders.”

♦♦♦

AS OPERATION Two Bridges unfolded, anti-corruption detectives felt a successful prosecution against Rees and some of his sources would send a powerful shot across the bows of the tabloids.

One report noted:

“It is likely that journalists and private investigators who actively corrupt serving officers would receive a long custodial sentence if convicted.”

“There will be a high level of media interest in this particular investigation, especially when involving journalists.”

“The Metropolitan Police will undoubtedly benefit if a journalist is convicted of corrupting serving police officers.”

“This will send a clear message to members of the media to consider their own ethical and illegal involvement with employees of the Met in the future.”

Operation Two Bridges came to a dramatic but early close because detectives were forced to deal with Jonathan Rees’ attempts to plant drugs on an innocent woman. 

Even so, detectives still felt they had enough to question four suspects about the illegal sale of confidential Scotland Yard information.

Doug Kempster was arrested at his parents’ home, where a page from the Police Gazette was found.

During the later search of Kempster’s own home:

” … the postman delivered a letter in a large brown envelope addressed to Douglas Kempster … containing a short letter from JR [Jonathan Rees] … also containing an original issue of the copy of the Police Gazette …”

Kempster’s response to all questions put to him was:

“No comment”.

Rees was arrested.

RAIDS ANTI-CORRUPTION DETECTIVES from the Met arrested two serving police officers  suspected of selling confidential information to Jonathan Rees and Mirror group journalist Doug Kempster. Photo: Rebecca Television

RAIDS
ANTI-CORRUPTION DETECTIVES from the Met arrested two serving police officers suspected of selling confidential information to Jonathan Rees and Mirror group journalist Doug Kempster.
Photo: Rebecca Television

Rees claimed that the bug in Southern Investigations violated his human rights.

Kingston was arrested at his home.

He later read out a prepared statement denying his involvement in any illegal activity.

The Met officer, Paul Valentine from the Special Escort Group, was also arrested.

He had no comment to make when he was questioned about the corruption allegations.

♦♦♦

IN 2000, the anti-corruption team submitted an advice file to the Crown Prosecution Service.

The report sought advice about whether there was enough evidence to charge the four men — Jonathan Rees, Doug Kempster and serving police officers Tom Kingston and Paul Valentine — with offences under the Prevention of Corruption Act.

The evidence was based mainly on the bugs installed in Southern Investigations in 1999 as part of Operation Two bridges.

In the transcripts, all four suspects were given codenames based on rivers:

Rees is “Avon”

Kempster: “Dart”

Kingston: “Ganges” 

Valentine: “Severn”.

One of the incidents highlighted was the loss of a copy of the Police Gazette in July 1999.

Southern Investigations had given it to Doug Kempster who then gave it to a senior executive on the paper who’d taken it home to read.

Kempster rang Rees to say:

"AVON" CALLING JONATHAN REES: when police searched his his home and office, they found copies of a confidential internal police magazine ... Rees claimed his human rights had been violated. Photo: PA

“AVON” CALLING
JONATHAN REES: when police searched his home and office, they found copies of a confidential internal police magazine. Rees claimed the search violated his human rights …
Photo: PA

“I can’t believe it— he’s fucking thrown it out — the fucking wanker — why did he take it home?”

For legal reasons Press Gang can’t name this executive.

Detective constable Tom Kingston, who was in the office, told Rees that Kempster had to get it back:

” … or else he won’t get any more.”

A couple of hours later, Kempster himself arrived at Southern Investigations.

He agreed to pay £200 to make up for the lost edition of the Police Gazette.

Rees and Kingston then moved on to discuss an identity parade where the M25 road rage murderer Kenneth Noye was due to appear.

They had given this information to Kempster who had published an article in the Sunday Mirror about it.

The price for the information, allegedly, was £400 split £100 for an unnamed police officer with the remaining £300 to be shared between Kingston and Rees.

Other transcripts indicate that the police officer Paul Valentine may have been receiving a monthly retainer of £150 from Southern Investigations.

On another occasion, Kempster visited Southern Investigations and he and Rees discussed the contents of an edition of Police Gazette.

Kempster responds to one article by saying:

“Asians look a lot better dead” and he and Rees joke about a “one-legged nigger.”

The report from the anti-corruption team concludes:

“sensitive police documents have been obtained without authority and passed to journalists for a financial consideration by Rees and Kingston.”

The Crown Prosecution Service decided not to prosecute.

♦♦♦
Published: 19 February 2015
© Press Gang
♦♦♦

 

NOTES
1
There have been recent developments in this affair — see Daniel Morgan page here 
for more details.
2
This article is part two of a series first published on the Rebecca Television website in September 2011.
To view part one, click on An Axe To Grind.
Back in 2011, Rees and Fillery were sent letters outlining the article and asking for their comments. 

Fillery never replied but Rees’ solicitor said:
“Mr Rees has not the spare time to reply to the many questions that have been raised, often on the basis of ill-informed or malicious allegations.”
“Defamation claims are being pursued … in respect of some past publications; and the police have been asked to investigate any use by journalists or others of confidential or forged material improperly released by police officers or other.”
No legal action was taken.
Jonathan Rees’ position has been explored in a Mail on Sunday article which can be read here.
3

This article draws on material provided by the Morgan family as well as by other journalists, including Nick Davies of the Guardian. Former BBC journalist Graeme McLagan devoted a detailed chapter on the murder as early as 2003 in his book Bent Coppers.  It also featured in Laurie Flynn & Michael Gillard’s Untouchables. Several books on the phone hacking scandal have highlighted the key role the murder plays in the saga: Nick Davies’ Hack Attack, Tom Watson MP & Martin Hickman’s Dial M For Murdoch and Peter Jukes’ The Fall Of The House Of Murdoch.
4
Alex Marunchak gave a detailed rebuttal of the allegations made against him in an interview with the Press Gazette website. Read it here.
5
The current Daniel Morgan Independent Panel comprises Baroness Nuala O’Loan (chair), Professor Rodney Morgan (ex HM Chief Inspector of Probation for England and Wales) and Samuel Pollock OBE (chief executive of the Northern Ireland Policing Board).
6

Press Gang editor Paddy French made several programmes on the murder while a current affairs producer at ITV Wales. 

 ♦♦♦

NEXT
THE NO 1 Corrupt Detective Agency continues with Porridge. Jonathan Rees was acquitted of murder and Sid Fillery of attempting to pervert the course of justice. But the Daniel Morgan murder investigation brought them to book for other crimes — Rees for conspiring to plant cocaine on an innocent mother and Fillery of making indecent images of children being sexually abused.

♦♦♦

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AN AXE TO GRIND

January 27, 2015

corrupt_header

IN MAY 2013 Home Secretary Theresa May announced a judge-led inquiry into the murder of private detective Daniel Morgan.

Her decision came two years after the prosecution of five suspects collapsed at the Old Bailey.

Five separate police investigations had failed to bring the killers to book.

The Home Secretary said:

“The horrific murder of Daniel Morgan and subsequent investigations were dogged by serious allegations of police corruption.”

This article — the first in The No 1 Corrupt Detective Agency series — lays bare the extraordinary sequence of events that lies behind that statement.

It reads like pulp fiction.

Except it’s true …

♦♦♦

THE STORY starts in the car-park of a pub in south London in 1987.

Private detective Daniel Morgan leaves the Golden Lion in Sydenham and is walking to his car.

It’s just after nine o’clock in the evening.

DANIEL MORGAN Scotland Yard's failure to bring his killer to justice became an enduring stain on its reputation.  Yard. Photo: courtesy of the Morgan family.  Photo: PA

DANIEL MORGAN
SCOTLAND YARD’S  failure to bring the killer of the 34-year-old to justice remains an enduring stain on its reputation..
Photo: PA

He’s carrying crisps for his young children.

A meeting with Jonathan Rees — his partner in the private detective agency Southern Investigations — has just ended.

In the weeks before this meeting, the two men have been arguing about a security operation that went wrong.

Rees arranged to handle the security for a car auction business only to be robbed of more than £18,000 in cash.

The owners of the car auction are not satisfied with Rees’ explanation — that he was mugged — and start legal proceedings to recover their money.

Southern Investigations does not have insurance to carry cash.

Morgan, who didn’t want anything to do with the job, is unhappy that he should have to pay half the bill.

Rees leaves the pub before Morgan.

PRIME SUSPECT  Jonathan Rees has been the prime suspect in the case. He's always denied any involvement and is now suing the police. Press Gang has discovered he's been taken to court by a firm of solicitors over an unpaid legal bill. Photo: PA

JONATHAN REES
ONE OF the prime suspects in the case, Rees has always denied any involvement and is now suing the police. He enjoyed the company of police detectives — some of them later convicted of corruption …
Photo: PA

He’s parked at the front of the building.

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THIS ARICLE is the first instalment of an investigation that started more than a decade ago.
For 30 years the Daniel Morgan murder was largely ignored by the UK newspapers and broadcasters.
In part, this was because the News of the World was in a commercial relationship with Southern Investigations.
Press Gang is independent and does not carry advertising. It runs at a loss and the only source of income is donations.
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When Morgan walks to the car-park, a man attacks the father of two with an axe.

The attack is so ferocious that the axe is buried deep in the dead man’s face.

More than two decades later five men will be charged in connection with the murder.

The prosecution case is that the man who wields the axe is Glenn Vian.

The man who acts as look-out is Gary Vian.

The Vians are Rees brothers-in-law.

He uses them as part-time security guards.

Private detective Jonathan Rees is the bait to get Morgan to the pub.

The man who drives the getaway car is Jimmy Cook, an occasional employee of Southern Investigations.

Retired Scotland Yard detective sergeant Sid Fillery is the last of the defendants.

He will be accused of perverting the course of justice …

♦♦♦

SID FILLERY is one of the key players in the Daniel Morgan scandal.

Fillery is a friend of Rees — and one of the first detectives on the case.

SID FILLERY  Sid Fillery: for four days in 1987 he was a key officer in the Morgan murder investigation. He claimed he left the investigation when it became clear that there was a conflict of interest. His boss, however, said that he ordered him off the inquiry when he discovered he was linked to Rees. Fillery was arrested shortly afterwards but released without charge. In 2002 he was convicted of fifteen counts of making indecent images of children. Photo: PA

SID FILLERY
FOR FOUR days in 1987 the detective sergeant was a key officer in the Morgan murder investigation. He claimed he withdrew when it became clear there was a conflict of interest. His boss, however, said he ordered him off the inquiry when he discovered he was linked to Rees. Fillery was arrested shortly afterwards but released without charge. In 2002 he was convicted of fifteen counts of making indecent images of children.
Photo: PA

He’s based at Catford Police Station — its patch includes the Golden Lion.

For several days he will not tell his bosses that Rees and the dead man were arguing about the car auction robbery.

Fillery does not tell his superiors that he and officers from Catford have been moonlighting as security guards for Rees.

Or that it was Fillery himself who brought the car auction business and Rees together.

Shortly after the murder, Fillery will retire from the police and step into the dead man’s shoes as Jonathan Rees’ new partner.

In 2008 all five men will be arrested in connection with the murder.

But the case never goes to trial — a series of pre-trial hearings results in the court refusing to admit the evidence of prosecution witnesses.

The case finally collapses in March 2011.

♦♦♦

DANIEL MORGAN set up Southern Investigations in 1984.

He’d learnt the business working for the Croydon detective agency Madagans. 

Later he was joined by another private detective, Jonathan Rees.

FLOWERS FOR DANIEL  DANIEL'S OLDER brother Alastair and his mother Isobel lay a wreath at the place where he died. Photo: PA

FLOWERS FOR DANIEL
DANIEL’S OLDER brother Alastair and his mother Isobel lay a wreath at the place where he died.
Photo: PA

But the two men were chalk and cheese. 

Morgan was a hard-working loner with a reputation as a womaniser. 

Rees was sociable and liked to spend time in the pub with his mates — many of them policemen.

Tensions built up between the two. 

Daniel saw himself as a grafter and complained he was doing the lion’s share of the work. 

He talked to his older brother Alastair about these tensions:

“I remember him saying to me once — I drove 40,000 miles last year and that guy hangs around in a bar drinking with his CID mates”.

“He was upset about it”.

Rees liked the company of police detectives — one of his closest friends was Sid Fillery.

The two men were freemasons.

They often attended an unofficial lunch club at the Croydon Masonic Hall for serving and retired police officers and their friends.

It was called “Brothers in Law”.

♦♦♦

THE YEAR before the murder Rees took a job organising the security for a local firm called Belmont Car Auctions in Charlton.

The firm had recently been robbed of £17,000 and wanted better protection at the site.

One of the directors was related to a local policeman who introduced him to Fillery.

Fillery suggested he get in touch with Rees.

Rees recruited police officer friends, including Sid Fillery, to help out during the auctions.

He also employed his brothers-in-law Glenn and Gary Vian.

GLENN VIAN ONE OF the security guards on the Belmont job was Rees' brother-in-law Glenn Vian. He would later be accused of axing Daniel Morgan to death ...  Photo: PA

GLENN VIAN
ONE OF the security guards on the Belmont job was Rees’ brother-in-law Glenn Vian. He would later be accused of axing Daniel Morgan to death …
Photo: PA

One night in March 1986 Rees took £18,000 in takings which he intended to deposit in a Midland Bank nightsafe. 

He said the nightsafe had been superglued shut and decided to take the money home.

He claimed that after he parked his car, he was attacked by two men.

Liquid was sprayed in his eyes and the money stolen. 

He was taken to hospital for treatment.

One of the detectives who investigated the alleged robbery was detective constable Duncan Hanrahan.

Hanrahan — another freemason who attended the “Brothers in Law” club and knew Rees and Fillery — would later be gaoled for corruption.

Hanrahan’s report of the robbery noted: 

“To attack somebody outside his house and get £18,000 … you would have to be the luckiest mugger in the world.” 

DUNCAN HANRAHAN THE DETECTIVE who investigated the mugging reported by Rees. He was later gaoled for corruption. Photo: PA

LUCKY MUGGER
THE DETECTIVE who investigated the robbery said the criminal responsible was the “luckiest mugger in the world”. Duncan Hanrahan was later gaoled on corruption charges unrelated to Rees or Fillery.
Photo: PA

But police inquiries were superficial and the investigation went nowhere. 

No-one was ever charged for the alleged robbery.

Belmont Car Auctions didn’t believe Jonathan Rees’ story — and started legal proceedings to recover its money.

Morgan was furious.

He felt Rees should pay the money rather than Southern Investigations.

The night before the murder, Morgan, Rees and Fillery met at the Golden Lion to discuss the issue.

Off-duty police officers later joined them for a drink.

The next night, after meeting former lover and estate agent Margaret Harrison, Daniel again met Rees at the Golden Lion.

Rees, who had parked in front of the pub, left first.

When Daniel left, he was murdered.

♦♦♦

TWO DAYS after the murder Alastair Morgan went to Catford Police Station.

He wanted to tell them he was convinced the events surrounding the Belmont Car Auction affair were the key to solving the case.

The detective he talked to was detective sergeant Sid Fillery.

Alastair Morgan had no idea that the police officer was a close friend of Rees.

“I remember explaining to him that I thought Daniel may have found out something about that robbery and had been murdered as a result of that.”

GOLDEN LION THE PUB in Sydenham where the murder took place. The night before the murder, Daniel Morgan had met with Rees and Fillery.  Photo: PA

GOLDEN LION
THE PUB in Sydenham where the murder took place. The night before the murder, Daniel Morgan had met with Rees and Fillery.
Photo: PA

“And he said to me — what robbery was that then?”

Fillery has always denied this conversation ever took place.

In fact, Fillery was the first person to interview Jonathan Rees — he also asked Rees to identify the dead man.

Fillery did not tell his superiors that he not only knew about the Belmont Car Auction affair but that he and other officers had been moonlighting for Southern Investigations.

Fillery also visited the offices of Southern Investigations as part of his inquiries.

Later, it became clear that several files, including the one on Belmont Car Auctions, were missing.

Fillery was on the investigation for four days.

The man leading the inquiry, detective superintendent Douglas Campbell, was furious when he discovered Fillery’s connection with Rees.

He arrested Fillery and police constables Peter Foley and Alan Purvis who he believed had also moonlighted on the Belmont Car Auctions security operation.

He also arrested Jonathan Rees and the Vian brothers.

All were later released without charge.

The Metropolitan Police later paid compensation to PCs Foley and Purvis for wrongful arrest.

By the time the inquest took place a year later, Sid Fillery had retired on medical grounds.

He quietly stepped into Daniel Morgan’s shoes as Jonathan Rees’ new partner …

♦♦♦

THE INQUEST was to be one of the most explosive in British history. 

Kevin Lennon, the book-keeper for Southern Investigations, gave sensational evidence.

He said Jonathan Rees told him he wanted Daniel Morgan dead.

KEVIN LENNON THE BOOK-KEEPER at Southern Investigations testified that Jonathan Rees made it clear he wanted Daniel Morgan dead. Photo: ITV

KEVIN LENNON
THE BOOK-KEEPER at Southern Investigations testified at the inquest that Jonathan Rees made it clear he wanted Daniel Morgan dead. A Mail on Sunday article in August 2014 claimed that Lennon later told Rees he’d been pressurised by police — he’d been charged with fraud. However, when ITV Wales talked to Lennon in 2004, he was sticking to his original story … 
Photo: ITV

Lennon told the coroner that Rees “asked me to find someone to kill Morgan.” 

“He asked me this on at least two occasions.” 

“He was of the impression that I knew people who could or would be willing to kill Morgan.”

“On each occasion I attempted to dissuade Rees from considering such a course of action.”

“He was adamant that he wanted Morgan killed.”

In a later conversation at the Victory pub in Thornton Heath he alleged Jonathan Rees told him he’d solved the problem.

“He said words to the effect, ‘Forget about arranging his death, I’ve got it fixed … ‘.”

“He explained that police officers who were friends of his based at Catford were capable and willing to organise it.”

He also said Rees later told him, again in the Victory pub, he had a new partner in mind once Morgan was dead:

Sid Fillery.

“ … Fillery was to take Morgan’s place after his death.”

“He was to get an ill-health pension or medical discharge.”

“He and Fillery were, according to Rees, very close and that nothing would be better to Rees than for Fillery to join in the company.”

It was Lennon who first revealed the fact that Fillery was now working with Rees.

Lennon said that Rees had discussed the murder with his wife Sharon Rees — the sister of the Vian brothers.

She sent the coroner a note to say she wasn’t mentally fit to give evidence. 

The next day she was photographed out shopping by the Daily Mirror.

♦♦♦

THE MAN in charge of the murder investigation also gave evidence.

Detective superintendent Douglas Campbell accepted Fillery’s actions in the days after the murder had seriously undermined the inquiry.

He also told the inquest that Daniel had been talking about blowing the whistle on police corruption in south London.

Campbell added:

“I could find no evidence at all.”

“It was a suggestion that he had a story to sell to a newspaper.”

“I spoke to the other persons concerned.” 

“I even went to the newspaper but if I told you what he was offered you would see it was quite ludicrous.” 

“He was alleged to have been offered £250,000 per story.”

Campbell didn’t reveal the name of the newspaper that Morgan went to. 

Now retired, he’s always declined to be interviewed about the murder investigation.

In fact, the evidence now points to the fact that Daniel Morgan may have approached several papers.

A former private eye who knew the murdered man says he told him he was going to see a reporter on the News of the World.

That reporter was Alex Marunchak and that the story was about police corruption. 

The figure discussed was £40,000 — an enormous sum of money in those days.

ALEX MARANCHAK A KEY editorial figure on the News of the World, the Ukrainian-born crime reporter had strong links with the Met. At the time of the inquest he was also working as a part-time translator for Scotland Yard.  Photo: BBC

ALEX MARUNCHAK
A KEY editorial figure on the News of the World, the Ukrainian-born crime reporter had strong links with the Met. At the time of the inquest he was also working as a part-time translator for Scotland Yard.
Photo: BBC

Marunchak insists he never met the murdered man.

The inquest also heard from Margaret Harrison –  the woman Daniel Morgan met the night of the murder.

She had received more than 60 phone calls from Jonathan Rees in the months leading up to the killing. 

She denied she was having an affair with Rees at the time Daniel Morgan was killed.

Later she and Rees shared a house in south London.

They are still together, co-owners of a property in Weybridge, Surrey.

The inquest jury returned a verdict of unlawful killing.

Alastair Morgan and his family were stunned when the police took no action after the inquest.

They began a long campaign to bring Daniel’s murderers to book.

It’s a campaign that was to drag the Murdoch-owned News of the World into the mystery… 

♦♦♦

NOTES
1
There have been recent developments in this affair — see
http://wp.me/P3kXx7-8K for more details.
2
This article is part of a series first published on the Rebecca Television website in September 2011.
Rees and Fillery were sent letters outlining the article and asking for their comments. 
Fillery never replied but Rees’ solicitor said:
“Mr Rees has not the spare time to reply to the many questions that have been raised, often on the basis of ill-informed or malicious allegations.”
“Defamation claims are being pursued … in respect of some past publications; and the police have been asked to investigate any use by journalists or others of confidential or forged material improperly released by police officers or other.” 
No legal action was taken against Rebecca Television.
3
This article draws on material provided by the Morgan family as well as by other journalists, especially Nick Davies of the Guardian. Former BBC journalist Graeme McLagan devoted a detailed chapter on the murder as early as 2003 in his book Bent Coppers.  It also featured in Laurie Flynn & Michael Gillard’s The Untouchables. Several books on the phone hacking scandal have highlighted the key role the murder plays in the saga: Nick Davies’ Hack Attack, Tom Watson MP & Martin Hickman’s Dial M For Murdoch and Peter Jukes’ The Fall Of The House Of Murdoch
4
Press Gang editor Paddy French made several programmes on the murder while a current affairs producer at ITV Wales. 

 ♦♦♦
Published: 27 January 2015
© Press Gang
♦♦♦

COMING UP
THE NO 1 Corrupt Detective Agency continues with Rogue Journalists and Bent Coppers. Southern Investigations became the heart of a web of illegal news-gathering with Rupert Murdoch’s News of the World one of its most valuable clients. 

♦♦♦

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