Created: Tuesday, 03 May 2005
On day 44 a forensic accountant for the prosecution testified in Michael Jackson’s trial Tuesday that, in his opinion, Mr. Jackson was spending more than he earned. The testimony came as the prosecution neared the end of its case.
The detailed analysis of Mr. Jackson’s multimillion-dollar empire was brought into the trial over vehement objections from defense lawyers who said it was irrelevant to the case and was based on hearsay statements contained in memos from various financial advisers.
Judge Rodney Melville instructed jurors they were not to consider the accounting figures “for the truth of the matter” but merely to show how the expert reached his conclusions.
Under questioning by deputy district attorney Gordon Auchincloss, forensic accountant John Duross O’Bryan traced Mr. Jackson’s assets and liabilities from 1999 to 2004.
He said the balance sheet was prepared on a tax basis and assets listed might actually have higher values.
He said he formed his opinions by reading through boxes of memos exchanged by Mr. Jackson’s financial managers over the years and he told of a warning to Mr. Jackson that if his overspending continued he might be forced to sell off his two greatest assets, the catalogue of his own songs and the Sony-ATV catalogue which contains rights to the works of numerous other artists including the Beatles.
The witness said even selling the catalogues would be problematic because that would incur a huge tax liability.
Defence lawyer Thomas Mesereau said the catalogue was worth $1 billion in 2003 and there have been estimates it’s now worth between $4 billion and $5 billion.
Mr. Mesereau clashed with the accountant, suggesting in several questions he underestimated the value of Mr. Jackson’s stake in the Sony-ATV catalogue and had not considered lucrative offers available to Mr. Jackson as an entertainer.
“Wouldn’t it be relevant if you knew Mr. Jackson could accept one opportunity and solve (his liquidity problem) in a day,” Mr. Mesereau asked.
Prosecutors are trying to show Mr. Jackson had banked on the documentary as a way to re-energize his career and it exploded in his face.
They said he then organized efforts at damage-control; they maintain he tried to do this by holding captive the family of the boy he allegedly molested and forcing them to participate in the so-called rebuttal video.
The accountant testified he was aware Mr. Jackson negotiated with the Fox network to get $7 million for the rebuttal video.
“Let’s say he has the opportunity to make a documentary that will generate $7 million,” Mr. Mesereau said.
“That $7 million is not going to make much of a difference” in Mr. Jackson’s liabilities.
“No, it’s not,” the witness agreed.
“And it wouldn’t be worth committing a crime, would it?” asked Mr. Mesereau.
The question was ruled argumentative and there was no answer.
Before the financial testimony, District Attorney Tom Sneddon called sheriff’s Sgt. Steve Robel to the stand to undermine Ms. Rowe in an attempt to impeach her testimony.
Mr. Jackson’s ex-wife, the mother of two of his children, had unexpectedly praised Mr. Jackson as a good father and a generous and caring friend and denied prosecution contentions that her statements in another rebuttal video were scripted by the Mr. Jackson camp.
Earlier Tuesday, police Sergeant Steve Robel told jurors how Mr. Jackson’s ex-wife, Debbie Ms. Rowe, had at one time described Mr. Jackson negatively.
Prosecutors called their last witness, Rudy Provencio, who worked with Mr. Jackson on a charity record. He spent about 20 minutes on the witness stand but court ended for the day before he could get to the heart of his testimony.
Prosecutors are expected to rest their case after Provencio completes his testimony.
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