April 18, 2024

Conservatives as Defenders of the Media

The annual seminar hosted by the trade magazine Talkers is intended to discuss the leading issues affecting talk radio, from advertising to how to break through in a crowded field. But this year, the more than 55 speakers had a particular topic they wanted to discuss: the recent Justice Department investigation into media leaks.

“They’re doing some scary things in our country right now,” Mr. Beck told the crowd. “They were started by Republicans and they’re being furthered by the Democrats.”

The press — often the target of allegations of liberal bias by conservative media — has found an unlikely ally in right-leaning radio and television hosts who have taken to defending the First Amendment with a fire-and-brimstone zeal. (To drive home his point that anything goes when it comes to free speech, Mr. Beck waved the Koran and a napkin said to be stained with Hitler’s blood.)

The First Amendment has always been a hot-button issue for talk radio, but conservative hosts in particular have focused on freedom of the press after revelations last month that the Justice Department had seized the phone and e-mail records of a Fox News reporter, the Washington correspondent James Rosen, who had included details about a secret United States report on North Korea in a 2009 article published on FoxNews.com.

The Washington Post obtained an affidavit that described Mr. Rosen (without naming him) as “at the very least, either as an aider, abettor and/or co-conspirator.”

The investigation into Fox News became public only after The Associated Press said on May 13 that the government had subpoenaed its telephone records in an unrelated leak investigation. Fox News has said it had no knowledge of the Justice Department’s 2010 subpoena for Mr. Rosen’s telephone records.

The debate over the government’s approach to leaks widened on Sunday when The Guardian revealed the identity of Edward Snowden, a contractor for the National Security Agency and the source of disclosures about the government’s widespread collection of private Internet and telephone data. On Sunday evening Fox News pundits debated whether the Obama administration had overreached in the use of secret surveillance techniques.

There was little debate, however, when it came to Mr. Rosen.

“This is Big Brother,” Sean Hannity said during his “Hannity” program on Fox News shortly after the details about the investigation into Mr. Rosen became public. “Rosen is doing what reporters are supposed to do,” added Mr. Hannity, who also hosts the syndicated talk radio program “The Sean Hannity Show.”

In a memo to employees last month, Roger Ailes, president and chief executive of Fox News, said, “We will not allow a climate of press intimidation, unseen since the McCarthy era, to frighten any of us away from the truth.”

Critics and supporters have noticed the emergence of Fox News, known for its battle cries of liberal bias in other news outlets, as one of the most vocal defenders of those news outlets’ rights.

“I love the juxtaposition of the media being defended by the people they don’t typically like, which is conservatives,” said Seton Motley, president of Less Government, an organization devoted to diminishing the role of the federal government.

Michael Smerconish, an independent who hosts a talk radio program on Sirius XM and contributes to MSNBC, said conservatives’ outrage over the Obama administration’s leak investigations has everything to do with politics.

“Given a choice of who gets thrown under the bus — Obama or the liberal media — Obama is first on the list,” Mr. Smerconish said. He added, “The liberal media would be a close second.”

Article source: http://www.nytimes.com/2013/06/10/business/media/conservatives-as-defenders-of-the-media.html?partner=rss&emc=rss

White House Defends Tracking Fox Reporter

The White House on Monday defended President Obama’s support for aggressive investigations into national security leaks despite new disclosures about a 2009 case in which the Justice Department searched a reporter’s personal e-mails and attempted to track his movements.

Details of the government’s investigation of the reporter, James Rosen, the chief Washington correspondent for Fox News, emerged in a court affidavit obtained by The Washington Post. Without naming Mr. Rosen, the document describes the reporter as “at the very least, either as an aider, abettor and/or co-conspirator.”

The case involved a 2009 article by Mr. Rosen about North Korea that was published on FoxNews.com. Mr. Rosen reported that intelligence officials expected North Korea to respond to the passage of a United Nations Security Council resolution condemning its nuclear and ballistic missile tests by launching another missile. He quoted a source who described missile activity in North Korea, but Mr. Rosen said he was withholding some details “to avoid compromising sensitive overseas operations.”

The Justice Department subsequently investigated the leak and indicted a government adviser, Stephen Jin-Woo Kim. He has pleaded not guilty. The government used records tracking Mr. Rosen’s use of his security badge at the State Department, apparently trying to establish his connection to Mr. Kim.

Mr. Rosen was not charged with any crime. But the suggestion that he was a “co-conspirator” appalled many of his colleagues, some of whom rallied to his defense on Monday.

Michael Clemente, the executive vice president of news at Fox News, said network officials were outraged to learn that Mr. Rosen “was named a criminal co-conspirator for simply doing his job as a reporter.” Mr. Clemente called it “downright chilling” and added, “We will unequivocally defend his right to operate as a member of what up until now has always been a free press.”

The revelations may complicate what has been a contentious relationship between the Obama administration and Fox News, whose conservative talk show hosts are among Mr. Obama’s most vocal critics. Mr. Rosen works on the news side of Fox, not the opinion side; he did not comment publicly on the affidavit’s contents.

The details about Mr. Rosen’s case came just days after The Associated Press revealed that the government had seized two months of telephone records for some of its reporters in a similar leak investigation. Under intense questioning from reporters on Monday, Jay Carney, the White House press secretary, declined to comment on Mr. Rosen’s case, but emphasized Mr. Obama’s desire to investigate serious leaks of government information.

“The president believes, I think, as all of his predecessors believed, that it is imperative that leaks that can jeopardize the lives of American men and women serving overseas should not be tolerated,” Mr. Carney said.

He added that the president seeks balance when it comes to security and the right of reporters to pursue stories without fear of investigation.

Article source: http://www.nytimes.com/2013/05/21/us/politics/white-house-defends-tracking-fox-reporter.html?partner=rss&emc=rss

DealBook: Prosecutors Weigh Insider Trading Case Against Raj Rajaratnam’s Brother

Prosecutors are readying insider trading charges against Rajarengan Rajaratnam, a younger brother of the imprisoned hedge fund manager Raj Rajaratnam, according to a person briefed on the case.

During Mr. Rajaratnam’s trial in 2011, Rajarengan Rajaratnam, who worked for his brother at the Galleon Group hedge fund, was heard speaking on several wiretaps of incriminating conversations that were played for the jury. Prosecutors identified him as an unindicted co-conspirator in the case.

Charges could be filed in the next month, this person said. There is an urgency to bringing an indictment against Rajarengan Rajaratnam, who goes by Rengan, because the five-year deadline for bringing securities fraud charges on certain trades is set to pass in the coming weeks.

He now lives in Brazil. If prosecutors charge him, they would have to use extradition laws to return him to the United States.

David C. Tobin, a lawyer for Rengan Rajaratnam, did not immediately return a request for comment. A spokeswoman for the United States attorney’s office declined to comment. News of a possible indictment against Rengan Rajaratnam was reported earlier by The Wall Street Journal

Though he was a much smaller player on Wall Street than his billionaire older brother, Rengan Rajaratnam is seen a seminal figure in the government’s broad inquiry into insider trading at hedge funds.

The origins of the investigation, which has led to more than 75 prosecutions of hedge fund employees and corporate executives, stretch back more than a decade. But a crucial breakthrough came in 2006 during an inquiry into Sedna Capital, a fund run by Rengan Rajaratnam. While reviewing e-mails and instant messages, securities regulators discovered damning communications between Rengan and his brother.

A graduate of the University of Pennsylvania and Stanford University’s business school, Rengan Rajaratnam did brief stints early in his career at Morgan Stanley and, for eight months, at the hedge fund SAC Capital Advisors. Prosecutors are investigating illegal trading at SAC, and have brought criminal charges against several former SAC traders. Steven A. Cohen, the founder of SAC, has not been charged with any wrongdoing.

Rengan Rajaratnam started Sedna in 2004. By mid-2006, Sedna was a small fund managing about $80 million. But its uncanny timing on several trades was brought to the government’s attention by an executive at the Swiss bank UBS, which provided services to Sedna.

In December 2006, lawyers at the Securities and Exchange Commission took Rengan Rajaratnam’s deposition. Sedna closed around that same time, and he joined his brother at Galleon.

Jurors at Raj Rajaratnam’s trial heard Rengan Rajaratnam on several calls, including one from August 2008, during which he told his brother about his efforts to press a friend, a consultant at McKinsey Company, for confidential information. Rengan Rajaratnam called the consultant “a little dirty” and boasted that he “finally spilled his beans” by sharing secrets about a corporate client.

Another former Galleon employee, Adam Smith, also testified that the day of Raj Rajaratnam’s arrest in October 2009, Rengan Rajaratnam took his brother’s notebooks from an office at Galleon.

Raj and Rengan Rajaratnam have another brother, Ragakanthan, who goes by R.K. and also worked at Galleon. R.K.’s name emerged during testimony at the trial of Rajat K. Gupta, a former Goldman Sachs director found guilty last year of passing the bank’s secrets to Raj Rajaratnam. Mr. Gupta is appealing his conviction.

R.K. Rajaratnam has not been charged with any crimes. Raj Rajaratnam is serving the second year of an 11-year sentence at a federal prison in Ayer, Mass.

Article source: http://dealbook.nytimes.com/2013/03/21/prosecutors-weigh-insider-trading-charges-against-raj-rajaratnams-brother/?partner=rss&emc=rss