Private Investigator Convicted In Racketeering Case

LOS ANGELES — One-time “private eye to the stars” Anthony Pellicano was convicted Thursday of 76 federal charges, including racketeering and conspiracy, for wiretapping and unlawfully obtaining information about his high-powered clients’ legal foes.

Pellicano, 64, was convicted of all but one of the charges he was facing. He was acquitted on a single count of unauthorized computer access.

In addition to the single counts of racketeering and conspiracy, Pellicano was convicted of 18 counts of wire fraud, 19 counts of unauthorized computer access, 13 counts of identity theft, 13 counts of computer fraud, nine counts of wiretapping and single counts of wiretapping conspiracy and possession of a wiretapping device.

Pellicano, who represented himself during the lengthy trial in U.S. District Court, sat quietly as the guilty verdicts were read.

His four co-defendants were also convicted of various charges. Former LAPD Sgt. Mark Arneson, 54, was convicted of all 46 charges he was facing, including racketeering and racketeering conspiracy. Prosecutors said Arneson ran unauthorized background checks on various people at Pellicano’s behest.

Retired SBC field technician Rayford Earl Turner, 51, was convicted of 17 of 21 counts, also including racketeering and conspiracy to place wiretaps. Turner provided proprietary phone company information to Pellicano and assisted in the wiretapping.

Computer wiz Kevin Kachikian, 43, who designed the Telesleuth wiretapping software, was convicted of conspiracy to commit wiretapping and possession or manufacture of a wiretapping device. He was acquitted of nine other charges.

Abner Nicherie, 44, who hired Private Investigator Pellicano to wiretap a business adversary, was convicted on a single count of aiding and abetting a wiretap.

“The jury is always entitled to come up with a bad decision,” a disappointed Nicherie told reporters after the verdicts were read.

Sentencing was set for Sept. 24. The racketeering charges alone carry possible prison terms of up to 20 years.

“We greatly appreciate the time and attention that the jurors dedicated to this lengthy trial,” Assistant U.S. Attorney Daniel Saunders said on behalf of himself and his co-prosecutors, Assistant U.S. Attorney Kevin Lally. “The defendants have received the full benefits of the justice system that they sought to deny to others.”

The seven-man, five-woman jury began deliberating May 1 and reached verdicts late Thursday morning.

It took U.S. District Judge Dale Fischer about one hour to read the verdicts against the five men.

Seated in the front row of the packed courtroom audience was Arneson’s wife, who — like her husband — was stoic as the verdicts were read.

Behind her sat Private Investigator Pellicano’s wife, Kat, and behind her was Anita Busch, a former journalist and victim of Pellicano’s hardball tactics. It was a June 2002 threat against Busch that started the FBI’s investigation into the private eye.

Busch, 46, gave reporters a printed statement thanking Fischer, the jury and “the honest people in law enforcement who stopped others from being relentlessly attacked and terrorized.”

Later, Busch hugged retired FBI Special Agent Stanley Ornellas, who led the Pellicano investigation.

After the verdicts were read, the jury’s forewoman, Terri Winbush, told reporters that the FBI and prosecution did an excellent job presenting its case.

When asked if it was shocking to hear about the sleazy things that some of Pellicano’s rich and powerful clients did in their private lives, Winbush responded, “Yeah, it was.”

But she said she never personally wondered why many of Pellicano’s ex- clients — who included powerful attorneys — escaped prosecution.

As to Pellicano’s decision to represent himself, she said: “He should have had someone representing him.”

Chad Hummel, Arneson’s attorney, said both he and his client were “very disappointed” with the verdict.

“We have grave concerns whether he received a fair trial,” Hummel added, noting that Arneson will appeal the jury’s decision.

Hummel also said Arneson apologized to the city of Los Angeles and its citizens for his wrongful acts, but noted that the ex-cop had a 29-year career of public service.

“This is not the last chapter,” Hummel said.

Adam Braun, Kachikian’s attorney, said his client was “prevented from offering crucial testimony, crucial exhibits.”

Braun also said Kachikian’s appeal will focus on what he called problems with the jury instructions.

During the nearly two-month trial, prosecutors portrayed Private Investigator Pellicano as a pit bull to the powerful, ruining lives and sabotaging lawsuits in the process.

They also said the trial wasn’t about fame or celebrity.

“This case is not about Hollywood,” Saunders told jurors during his closing argument. “This is a case about corruption, cheating, greed and arrogance and perversion of the justice system, and it just happened to take place in Hollywood.”

The prosecution’s case was a sex-drenched tale of paranoia, deceit and deception, all funneled through Pellicano’s Sunset Strip office.

The jury heard tales from billionaires, hedge fund managers, an ex-prostitute, music industry moguls and others telling of how Pellicano victimized them or investigated others for them.

Defense attorneys — and Pellicano himself — said the ex-private investigator was a secretive “lone ranger” who rarely, if ever, allowed anyone to get close enough to him to figure out his operation.

They accused prosecutors of being overzealous and overcharging the case.

Thursday’s verdicts are not the end of the Pellicano case. A trial date is expected to be set soon for Pellicano’s upcoming trial alongside entertainment lawyer Terry Christensen.

Both men are charged with illegally wiretapping the ex-wife of billionaire Kirk Kerkorian, who was involved in a bitter child support dispute in 2002.

Christensen hired Pellicano to investigate her and recordings subsequently emerged of the men apparently discussing alleged wiretaps.

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