Phone hacking: R. Murdoch faces inquiry into US companies

By Alex Spillius, in Washington, Nick Allen in Los Angeles and Richard Blackden in New York

As the pressure on Mr Murdoch’s media empire spread worldwide, one key US senator called for “the appropriate agencies” of the American government to examine whether phone hacking had extended to its citizens, including the victims of the September 11 attacks.

Senator Jay Rockefeller, chairman of the commerce, science and transportation committee, said that in the event of an investigation his “bet” was that “we’ll find some criminal stuff”. “This will be a huge issue,” he said, adding that his own committee may open an inquiry.

“I am concerned that the admitted phone hacking in London by News Corp may have extended to 9/11 victims or other Americans. If they did, the consequences will be severe,” added Mr Rockefeller, a Democrat from West Virginia. Families of the victims last night reacted angrily to reports that the News of the World attempted to buy phone records of their loved ones from a former New York police officer.

“Someone should look into it to see if their rights were violated — the family members I’ve talked to are appalled,” said Jim Riches, a former deputy fire chief in New York whose 29-year-old son, also a fireman, died in the attacks.

“I think they crossed the line. They’re trying to get messages from loved ones in the last moments of their lives. It’s horrible, and they should be held accountable. It’s despicable and unethical,” he told Politico, a US newspaper.

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Sen Rockefeller wrote a letter with Sen Barbara Boxer of California, the chairman of the select committee on ethics, urging Eric Holder, the attorney general, and Mary Schapiro, chairman of the Securities and Exchange Commission, to investigate News Corp, Mr Murdoch’s umbrella company.

“The reported allegations against News Corporation are very serious, indicate a pattern of illegal activity, and involve thousands of potential victims. It is important to ensure that no United States laws were broken and no United States citizens were victimized,” they said.

In a separate letter to the same authorities, Sen Frank Lautenberg, of New Jersey, backed calls for “further investigation”, warning that current reports may “only scratch the surface of the problem at News Corporation”.

“The limited information already reported in this case raises serious questions about the legality of the conduct of News Corporation and its subsidiaries,” he said.

The chief executive of News Ltd, Mr Murdoch’s Australian newspaper group, announced that it was opening a review of all editorial expenses from the past three years to ensure they were for “legitimate services”.

John Hartigan said he was not aware of any staff wrongdoing in the country but was concerned about growing perceptions that the scandal had spread to News Corp’s Australian arm.

Pensions & Investment Research Consultants, an advisory group for investors, issued the first prominent call for James Murdoch, the son of Rupert Murdoch, to step down as chairman of BSkyB, in which News Corp has a stake.

In the US, senators expressed concern that members of staff at Murdoch publications could have transgressed the Foreign Corrupt Practices Act, which makes it illegal for employees of any US company or its subsidiary to bribe foreign officials.

The majority of Murdoch’s empire is made up of his US assets, which include Fox News, the Wall Street Journal, the New York Post and 20th Century Fox film studio. A criminal investigation or Congressional hearing could lead to the sort of advertising withdrawal that presaged the closure of the News of the World. Telegraph