A gossip writer for the New York Post has been suspended pending a federal investigation into whether he tried to extort money from a billionaire California financier, the newspaper reported Friday.
Jared Paul Stern, who worked freelance for the newspaper’s Page Six column, is suspected of demanding $100,000 and an annual $10,000 stipend from Ron Burkle in exchange for not writing negative stories about him, the Post said.
In two 90-minute meetings Stern, 36, asked for a series of payments from Burkle, the New York Daily News reported.
At one point, Burkle finally said, "How much do you want?" after Stern said he could control coverage by Richard Johnson, Page Six's chief writer, and his staff.
"Um, $100,000 to get going and then you could get it to me on a month-to-month, maybe like $10,000," replied Stern, the Daily News reported.
"Okay, that's a great deal," Burkle said, according to the paper's account.
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“Should the allegations prove true, Mr. Stern’s conduct would be morally and journalistically reprehensible, a gross abuse of privilege, and in violation of the New York Post’s standards and ethics,” editor in chief Col Allen said in a statement.
A spokeswoman for the Post declined to elaborate on the newspaper’s report. FBI spokeswoman Christine Monaco declined to comment.
There was no answer at a telephone number listed for a Jared Paul Stern in New York City; a message left at another number listed under that name in New York state was not returned.
Burkle, one of the world’s richest men, has an estimated personal wealth of more than $2 billion. He has given millions of dollars to political causes, including more than $200,000 to Republican California Gov. Arnold Schwarzenegger and his campaigns.
In a statement, Burkle said he and his lawyers “have repeatedly written and or told the New York Post lawyers, editors and management that the articles and the items about him in Page Six are inaccurate but to no avail.”
The Post said Stern worked two days a week for the paper. He also recently served as editor for the inaugural issue of Page Six The Magazine.
During their meeting, Stern described how Burkle could buy Page Six protection, according to the Daily News. "It's a little like the Mafia. A friend of mine is a friend of yours," Stern said.
"The rest of the paper wouldn't have to know about it," Stern told Burkle.
During the sessions, the two men sat across from each other at a table while Stern first exhaustively outlined "three levels of protection" that he said Burkle needed, the Daily News reported.
"There are various levels of protection," Stern reportedly began. At "level one," Burkle would be a source for Page Six and provide items about his celebrity friends as a way of getting immunity for himself.
"If there are any stories you can throw our way, we can establish you as a source," Stern said. Burkle refused.
On Monday, Stern e-mailed instructions to one of Burkle's employee, requesting a $100,000 down payment to be wired to his New York City bank account, and during the week sent more e-mails wondering where his money was, according to the Daily News.
Burkle in February joined forces with union workers at Knight Ridder Inc. newspapers in an effort to buy a group of 12 papers that The McClatchy Co. plans to sell as part of its acquisition of the company. Burkle’s company, Los Angeles-based The Yucaipa Cos. LLC, teamed with the Newspaper Guild-Communications Workers of America as part of the effort.
Yucaipa also is known for its investments in supermarkets, including Food4Less, Dominick’s, Ralphs Grocery Co., Smith’s Food & Drug Stores and Fred Meyer.