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Did Fox News Have Duty to Inform Investors?
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Report Suggests Mail Fraud and Wire Fraud Could Be Involved.
The U.S. Department of Justice investigation into Fox News has expanded to add financial crimes experts from the United States Postal Inspection Service, according to an exclusive report from CNN’s Brian Steltzer citing “four sources connected to the investigation.” While not offering specific details, Steltzer reports, “Mail fraud and wire fraud cases are part of the USPIS purview.”Â
Fox News has come under fire, and possibly investigation, for the funds used to pay women who accused its former star, Bill O’Reilly, of sexual harassment. Last year, Fox News parted with its chairman and CEO, Roger Ailes, amid a cloud of sexual harassment allegations and lawsuits.Â
Fox News and its parent company, Rupert Murdoch’s 21st Century Fox, could be in trouble for not notifying investors of reportedly millions of dollars used to pay accusers. The company could also face securities problems if it knew but did not notify investors of possible insecurity surrounding Ailes and O’Reilly, arguably two of the key elements to Fox News’ profits.
“In February the investigation was reported to be focusing on settlements made with women who alleged sexual harassment by former Fox News boss Roger Ailes, and questions about whether Fox had a duty to inform shareholders about the settlement payments,” CNN reports.
The investigators have been asking “how the shareholder money was spent; who knew; and who should have known,” one of the sources said.
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Investigators have also been asking questions about mysterious confidants of Ailes — people who were known inside Fox as “friends of Roger.”
Ailes, through Fox News, employed a number of longtime friends as consultants, for purposes that remain unknown. One of the consultants earned $10,000 a month by submitting a monthly invoice to Fox.
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