Jackson Lawyer Rips Up Subpoena / Alles zum Schaffel Fall hier

Schaffel v. Jackson Civil Lawsuit
June 30th 2006
Testimony of Evelyn Tavasci
Summary Report

Schaffel gegen Jackson Zivilrechtsstreit
30. Juni 2006
Aussage von Evelyn Tavasci
Zusammenfassender Report

Told the court that she has known MJ for 15 years and eventually became his executive administrator and personal assistant, helping MJ to organize his personal daily life.
Sie erzählte dem Gericht, dass sie MJ seit 15 Jahren kennt und recht bald sein ausführender Administrator und seine persönliche Assistenz wurde. Sie helfe MJ seinen persönlichen Alltag zu organisieren.

She said that she was employed thru MJJ Productions, and that is how she got paid and she says that she is still employed thru MJJP.
Sie sagte, dass sie über MJJ Productions angestellt wurde und dass sie bezahlt wurde, und sie sagte, dass sie immer noch Angestellte über MJJP ist.

She said that she was aware thru a press release that MJ has done a shake up of his operations and has hired Mr. McMillan, but beyond what she read, that’s all she knows about that.
Sie sagte, dass sie durch ein Presse-Statement davon erfuhr, dass MJ seine Geschäftspartner geändert hat und nun Herr McMillan ihn vertritt, aber das sei alles, was sie darüber weiß.

She stated that in her 15 years that she has been with MJ, she has never spent extensive time with him – that her exposure to him had been sporadic.
Sie erwähnte, dass sie in den 15 Jahren in denen sie für MJ gearbeitet hat niemals übermäßig viel Zeit mit ihm verbracht hat – ihr Kontakt zu einander war mehr sporadisch [also flüchtig].

Tavasci was asked how was MJ’s memory on things. Was objected to, but overruled. She said that he was very creative, but isn’t day to day. He doesn’t have a good memory for recalling day to day matters and has to be reminded a lot. But that his memory for music is excellent.
Tavasci wurde gefragt, wie es um MJs Erinnerungsvermögen steht. Zwar gab es Einspruch, aber dennoch musste die Frage beantwortet werden. Sie sagte aus, dass er sehr kreativ sei, aber nicht von Tag zu Tag. Er habe kein gutes Erinnerungsvermögen was alltägliche Dinge betrifft, denn er muss oft erinnert werden. Aber sein Erinnerungsvermögen was die Musik betrifft sei exzellent.

She gave examples, such as his memory for the business side of music not being very good as him not remembering where he needed to go to sign papers for his short films.
Sie gab ein Beispiel darin, dass auch sein Erinnerungsvermögen für die geschäftliche Seite des Musikgeschäfts nicht so gut ist und dass er sich oftmals nicht erinnern kann wohin er gehen muss, um zum Beispiel Verträge für seine Videoclips zu unterzeichnen.

She says that he would forget the day or time.
Sie sagt, dass er den Tag und die Uhrzeit vergessen würde. She says that he would have to be awaken in order to go to a court proceeding.
Sie sagte, dass er aufgeweckt werden musste, um an einer Gerichtsverhandlung teilzunehmen.

She said that MJ relied heavily on advisors in consultation, but she could say whether these advisors made decisions for him.
Sie sagte, dass MJ sich auf seine Berater verlässt, aber sie könne nicht sagen ob diese Berater auch Entscheidungen für ihn treffen würden.

She did say that MJ would defer to his advisors, especially in a creative mode.
Sie hat auch gesagt, dass MJ seine Berater gerne aufschiebt, ganz besonders wenn es um die kreativen Dinge geht.
She also stated that MJ would put his trust in people – immediately and perhaps too soon.
Sie gab außerdem an, dass MJ sein Vertrauen in die Menschen sofort oder vielleicht viel zu früh setzt.

She stated that while she has never sat in on a business deal with him or for him, she knows him to be a very generous person.
Sie gab an, dass sie niemals an einem Geschäftsabschluss mit ihm oder für ihn teilgenommen hat, aber sie weiß dass er eine sehr großzügige Person ist.

She confirmed that she knows Marc Schaffel, recognized him in the courtroom and she has met on occasion, not many times.
Sie bestätigte, dass sie Marc Schaffel kennt und erkennt ihm im Gerichtssaal wieder, und sie sagt sie haben ihn zufällig getroffen aber nicht oft.

She said that she first met Schaffel in Sept. 2001 when MJ was in Madison Square Garden for a show that MJ was doing there.
Sie sagte, dass sie Schaffel zum ersten Mal im September 2001 traf, als MJ im Madison Square Garden war, um dort eine Show zu machen.

When asked what interaction did she have with Schaffel during that time, Evvy testified that at Schaffel’s request, she had started to make arrangements for MJ to make appearances in Indiana and at an amusement park in Ohio and she was making travel arrangements for MJ and his children and other party members. She stated that she had interaction with Schaffel on this matter over the phone.
Als sie gefragt wurde wie der Zusammenhang zu Schaffel in diesem Zeitraum zustande kam, sagte Evvy aus, dass sie aufgrund Schaffels Anfrage mehrere Arrangements für MJ machen musste, damit dieser in Indiana und in einem Vergnügungspark in Ohio erscheinen würde, und sie traf die Reiseveorbereitungen für MJ und seine Kinder und andere Teilnehmer. Sie sagte außerdem aus, dass sie von Schaffel diese Anweisungen über das Telefon erhielt.

Evvy didn’t recall any interaction with Schaffel for the rest of 2001, except for routine communications for MJ by Schaffel and she would sent MJ notes about it.
Evvy hat einen weiteren Kontakt zu Schaffel im Jahr 2001 ausgeschlossen, mit Ausnahme der gewöhnlichen Kommunikation für MJ von Schaffel, die sie MJ durch Nachrichten weitergab.

Evvy confirmed when asked did she know a Michele Bly and she said that Bly was a project coordinator for Brad Buxel, MJ’s music director. When asked, Evvy confirmed that in 2001, she had received a phone call from Bly regarding Schaffel’s other career, along with a fax from Howard Bernstein and Associates on this same matter.
Evvy bestätigte als sie gefragt wurde, dass sie eine Michele Bly kenne und sie sagte aus, dass Bly deine Projektkoordinatorin für Brad Buxel sei, einem von MJs Musik-Direktoren. Nachdem sie danach gefragt wurde bestätigte Evvy, dass sie 2001 einen Anruf für Bly erhielt indem es um Schaffels andere Karriere ging, gleichzeitig erhielt sie ein Fax von Howard Bernstein and Associates über den selben Inhalt.

When asked what she did with that information, Evvy explained that per procedure, she faxed that information to their attorney, Zia Moddabar.
Als sie gefragt wurde was sie mit dieser Information tat erklärte Evvy, dass sie diese Informationen an ihren Anwalt Zia Moddabar weiterleitete.

When asked, Evvy testified that after she sent that information to Mr. Moddabar, Mr. Moddabar informed her that Schaffel had been terminated and that was in November, 2001. After Schaffel had been fired, Evvy testified that she had not had any contact with Schaffel from that point thru 2002.
Als sie danach gefragt wurde sagte Evvy aus, dass nachdem sie die Information zu Herrn Moddabar geleitet hatte, Herr Moddabar sie darüber informiert habe, dass Schaffel gekündigt wurde und das war im November 2001. Nachdem Schaffel gekündigt war, sagte Evvy aus, habe sie keinen Kontakt mehr zu ihm gehabt bis zu diesem Zeitpunkt in 2002.

Evvy testified that she had then later learned that Schaffel (who had been identified as being in the adult entertainment business by MJ’s lawyer) had gotten back together with MJ in a business sense, but she didn’t know when that had occurred. Evvy said that she was surprised to learn that he had returned.
Evvy sagte aus, dass sie später erfuhr, dass Schaffel (der von MJs Anwalt als Geschäftsmann für Erwachsenenunterhaltung identifiziert wurde) wieder mit MJ auf einer geschäftlichen Basis zusammenarbeiten würde, aber sie wüsste nicht wie das zustande kam. Evvy sagte, dass sie überrascht war, als sie erfuhr er sei zurück.

X-EXAM
GEGENVERHÖHR

King (Schaffel’s attorney) asked Evvy was she very loyal to MJ and she said yes, that she had been treated very well throughout the years and that she stood with him in his employ even though she had gone months and months without being paid.
King (Schaffels Anwalt) frage Evvy ob sie sehr loyal MJ gegenüber sei und sie bejahte dies. Sie sagte, dass sie sehr gut behandelt wurde in all den Jahren und dass sie an seiner Seite stünde, auch wenn sie und andere Angestellten monatelang kein Geld erhielten.

Evvy was asked if she had an additional conversation with Schaffel about Schaffel arranging to pay the late actor Marlon Brando $1 million, and she said no. King asked her if she was aware of the transaction and she said yes. Evvy confirmed that she had a conversation with MJ and MJ instructed that he wanted Mr. Brando to be paid $1 million.
Evvy wurde gefragt, ob sie eine Unterhaltung mit Schaffel hatte, die darum ging dem verstorbenen Schauspieler Marlon Brando 1 Million Dollar zu bezahlen und sie sagte nein. King fragte sie, ob sie darüber informiert sei über diese Transaktion und sie bejahte dies. Evvy bestätigte, dass sie eine Unterhaltung mit MJ hatte und MJ wollte, dass Herr Brando 1 Million Dollar erhielt.

King then asked Evvy if she had interaction with Schaffel to make travel arrangements for the Bambi Awards in Germany in 2002 and Evvy said possibly. She testified that it was possible that she had arranged travel for Schaffel during that time, but didn’t recall having a conversation with Schaffel about what he (assuming King is talking about MJ) was going to perform at the awards.
King fragte Evvy weiterhin, ob sie eine Unterhaltung mit Schaffel hatte, um Reisevorbereitungen für die Bambi Verleihung in Deutschland zu treffen 2002 und Evvy sagte es sei möglich. Sie sagte es sei möglich, dass sie die Reisevorbereitungen für Schaffel in dieser Zeit traf, aber sie könne sich nicht an eine Unterhaltung mit Schaffel erinnern warum MJ bei den Awards erscheinen sollte.

REDIRECT BY MUNDELL
GEGENVERHÖHR VON MUNDELL

When asked if Evvy specifically remembered arranging travel for Schaffel in 2002, Evvy said that she just didn’t recall.
Als sie gefragt wurde sagte Evvy, dass sie sich nicht spezifisch daran erinnern kann für Schaffel in 2002 Reisevorbereitungen getroffen zu haben. Evvy sagte sie könne sich einfach nicht erinnern.
THE END.
ENDE.

(Quelle englisches Original: mello1 vom MJJforum
Übersetzung: Bina / Malibu forum)

Videos:

http://abcnews.go.com/Video/playerIndex?id=2147508

http://community.mjeol.com/showthread.php?t=7818

Thank you to TSCM of MJJforum!!!

MICHAEL JACKSON EXTENDED DEPOSITION CLIPS

Datum: 23. September 2005
Format: Windows Media Video (WMV)
Dauer: 2 Minuten 54 Sekunden
Auflösung: WMV - 320 x 240 - 10,4 MB

Download: http://rapidshare.de/files/24889983/MJExtendedDepo.wmv.html
Streaming: http://www.youtube.com/watch?v=Cl2YS3R9UYA

It was very short, but here are the basic points I jotted down when reading. Again, all thanks to Gail for going the extra mile to get this transcript for the community.

Defense Points

* Evvy was called to the stand by the defense even though it is still Schaffel's side of the case due to a scheduling conflict, another defense witness will take the stand for Michael on Wednesday for the same reason.

* Evvy has worked for Michael for over 15 years and continues to do so, and supported the defense's position that Michael does not have the best of memory on business facts day-to-day, but musically he has an excellent memory.

* Evvy stated that Michael is very generous and places his trust in people immediately, sometimes too quickly.

* Evvy confirmed that Michael had termintated business with Schaffel in 2001 and she was surprised to learn that he was back in the Jackson camp sometime after 2002.

Plaintiff Points

* Evvy agreed that she stood by Michael's side after going "months and months" without being paid.

* Evvy was aware of the $1 million transaction from Michael to Marlon Brando in regards to the 2001 concert.

* Evvy said she may have arranged travel for Schaffel (though she couldn't remember) in regards to the 2002 Bambi Awards but that she did not discuss any details about what role Schaffel would play.

Harvey Levin spoke exclusively with Schaffel back in 2004-2005 and Schaffel bragged about how he had secretly recorded many long phone conversations with Michael about the same time that all the Arvizo allegations were alleged to have taken place. Schaffel said he was willing to offer up more information or the tapes themselves if the price was right (he was asked for $1,000,000 or so per revelation, trying to cash in on an on-going criminal investigation basically). I think, but am not positive, that this is one reason why Levin may be called.

Diane Dimond ran a three-part expose on Schaffel during the '05 criminal trial (NOT to help Michael in any way, mind you) - part one alone exposed the following facts about Schaffel:

- At least 13 former associates of Schaffel claim that he repeatedly swindled people
- He took money for movies he never made
- He tried to sell the same footage to different distributors
- He bounced checks and skipped out of bills
- Schaffel's conduct provoked several lawsuits and he was evicted from two rental houses
- Schaffel was ordered to pay over $14,000 in back-rent at the two places
- Interview with Paul Barassi talking about Schaffel ripping people off etc.
- Used cancelled checks to rent a mansion which is where some flicks were filmed
- Stan Globe claims Marc Schaffel cheated him out of $80,000 and is still waiting for payment
- Joe Becker claims Marc Schaffel ran out with $120,000 of his
- Schaffel got $34,000 by using Michael's name to try and sell a video-game with WMCIG theme (lawsuit filed against him)
- Ian Drew also claims he was conned by Marc Schaffel when filming for the rebuttal documentary

Source: MJJF

Jury in Michael Jackson lawsuit hears pop star's telephone calls

LINDA DEUTSCH
Associated Press

SANTA MONICA, Calif. - Jurors in a civil lawsuit against Michael Jackson on Wednesday heard a series of increasingly frantic phone messages from the star to associate F. Marc Schaffel demanding action on projects including a collaboration with actor Marlon Brando on TV shows and videos and the release of a charity recording.

The tapes of voice messages left on Schaffel's answering machine were played to show his close relationship with Jackson and that he was entrusted with handling millions of dollars for the singer.

Schaffel claims the pop star owes him $3.8 million in royalties, expenses and other debts.

In one of the first phone messages from 2001, Jackson said, "Marc, it's Michael. ... Marc, please never let me down. I like you. I love you. ... I really want us to be friends and conquer the business world together. Please be my loyal, loyal friend. I love you."

Schaffel, on the witness stand, said he had been working on a number of projects for Jackson and had even arranged a $10 million line of credit for him from a financial institution.

He said Jackson had many demands including having Schaffel search out a home for him in Beverly Hills which could be a hideaway from his Neverland ranch.

In June 2001 Jackson left several messages dealing with what he called "the Marlon Brando deal." The tapes shed more light on the pop star's friendship with Brando , who died in 2004 .

Schaffel said Jackson had an idea to do a video in which Brando would interview him and he would interview Brando at Brando's island in Tahiti . He said the project fizzled because of the enormous cost involved.

Later, Schaffel said, "We had several meetings with Marlon. Michael wanted Marlon Brando to do several DVDs on acting lessons. Mr. Brando was getting up there in age and Michael considered him the greatest actor of all time ."

There were several messages from Jackson saying Brando had called and wanted to know what was going on with the project . In one call he said, "Marlon Brando has been pushing. He's a wonderful man. He's a god. He wants a lot of money. He wants to get things done right now."

By then, Schaffel said, the plan for the project had changed and Jackson wanted to produce a TV show about Brando's life and experience as well as the acting DVDs.

Jackson's other concern was the record he had made called, "What More Can I Give," which was to be a charity project for victims of the Sept. 11, 2001, terrorist attacks. The record was never released because of complications involving Jackson's relationship to Sony.

Schaffel said the record cost millions and involved huge amounts of travel to record more than 30 major artists singing various verses.

By 2003, when it had not been released, Jackson called Schaffel with more urgent messages saying he now had a plan for the recording to be a charity project tied to the Iraq war.

"It should be for America in Iraq," Jackson said in one message. "... It's a perfect cause. It means more now than any other causes."

Some of his phone messages relating to the record were timed off at 2:05 a.m. and 6:39 a.m. and Schaffel said they were merely adjuncts to personal meetings with Jackson.

"We have to do something regarding sympathy and unity for Iraq," Jackson said on one message. "It's a beautiful thing. We have to do this, Marc."

Schaffel also testified about a trip he made to Brazil to deliver $300,000 to someone in South America to take care of a personal matter in November 2003.

Schaffel never described the personal matter. In Jackson's 2005 child molestation trial prosecutors claimed there was a plan to relocate a family making accusations against the pop star and take them to Brazil.

Schaffel, who acknowledged that his background is in distributing adult videos, said he was able to withdraw $300,000 from his own accounts that he kept in Europe for his business. He said he was never fully repaid.

Schaffel also outlined hundreds of thousands of dollars he claims he is still owed from Jackson. In one aspect of his claims against Jackson, Schaffel acknowledged he was paid $1.4 million as his share of royalties from two videos sold to Fox television and received other expense payments, but said he was still owed $664,000 in royalties from those videos.

Among others, Schaffel said, were $100,000 in legal fees after being named an unindicted co-conspirator in the molestation case against Jackson. The pop star was acquitted of those charges.

Quelle: http://www.montereyherald.com/mld/monterey...cs/14972003.htm

Thank you to TSCM of MJJforum for this information:

I'd like to post the transcript of this audio message as it aired edited on GMA last November, along with the transcript of the audio message as it aired in court and on Headline News tonight just to illustrate how severely edited the tape initially was as it aired on television:
Ich möchte euch gerne die Transkripte von dieser Audionachricht zeigen, die im letzten November auf GMA abgespielt wurde, neben dem Transkript der Audionachricht wie sie im Gericht und bei Headline News heute lief um euch zu zeigen wie ganz offensichtlich das Tape bearbeitet würde für das Fernsehen:

====================
GMA Aired Message: Hello Marc, it's Michael... Please, please please never let me down, I really like you, I love you...
Ausgestrahlte Nachricht von GMA: Hallo Marc, hier ist Michael... Bitte, bitte, bitte enttäusche mich nie, ich mag dich wirklich, ich schätze dich...

Full Message: "Hello Marc it's Michael. Let's make all time records Marc. I want to make history so badly. I'm speaking from the bottom of my heart. And Marc, please, please, please never let me down. I really like you. I love you. I've been betrayed so much by people and I want us to really, really be friends and to be -- to conquer the business world together. I really do, I've thought about it a lot. But, please be my loyal, loyal, loyal friend. I love you and thank you so much. Bye."
Komplette Nachricht: "Hallo Marc, hier ist Michael. Lass uns zusammen Geschichte schreiben, Marc. Ich möchte so gern Geschichte schreiben. Ich spreche hier aus dem Tiefsten meines Herzens. Und Marc, bitte, bitte, bitte enttäusche mich nicht. Ich mag dich wirklich. Ich schätze dich sehr. Ich wurde von so vielen Menschen hintergangen und ich möchte, dass wir beide wirkliche, wirkliche Freunde werden - um die Geschäftswelt zusammen zu durchqueren. Das möchte ich wirklich, da habe ich drüber nachgedacht. Aber, bitte sei mein treuer, treuer, treuer Freund. Ich mag dich so sehr und danke dir vielmals. Tschüß."
====================

This is now the second audio tape that was initially edited specifically to imply that Michael was desperately requesting money from Marc, and again it has been confirmed that this tape had absolutely nothing to do with Mike asking for money or "directing Schaffel to get him something."
Dies ist also nun schon die zweite Tonbandaufnahme, die absichtlich bearbeitet wurde, um damit zu beweisen, dass Michael Geld von Marc verlangt hat, und es hat wieder einmal bewiesen, dass dies nicht der Fall war. Michael hat also Schaffel nicht dazu angestifftet ihm "erwas zu besorgen".

Übersetzung: Bina, Malibu

Howard King and Brian Oxman were both on Nancy Grace's show tonight with Jane Velez-Mitchell filling in. Until the official transcript comes out here's a summary:

---

- King says that the case is already a slime-fest

- King says that the only defense to Marc Schaffel's claims so far is that he is a "gay porn producer"

- King says they warned the defense that if they ask Schaffel anything about MJ's knowledge of Schaffel's background, they'll hear intimate details of their conversations

- Mitchell asks what kind of conversations, is this gonna be explosive?

- King says he hopes it doesn't come up because it has absolutely nothing to do with the claims. It will only come up if they open the door. If there is anything left that can be explosive about Michael Jackson this will be it.

- Played the audio recording which was quoted by AP and played in court today: "Hello, Marc it's Michael. Let's make all time records Marc. I want to make history so badly. I'm speaking from the bottom of my heart. And Marc, please, please, please never let me down. I really like you. I love you. I've been betrayed so much by people and I want us to really, really be friends and to be -- to conquer the business world together. I really do, I've thought about it a lot. But, please be my loyal, loyal, loyal friend. I love you and thank you so much. Bye."

- Mitchell asks what that recording proves and what's the point?

- King says that Michael spent 18 months denying that he even knew who Marc Schaffel was (??) but more importantly it shows Michael's character. This is how he sucks people in, and then he dumps them. He's done this over, and over again.

- Oxman says that the tapes seem very familiar to him because that is what Michael does when he calls people. But, he frankly does not see this business of Michael cutting people off. What he sees is that when people have something to produce for Michael Jackson, he is interested. And when they don't, he is no longer interested. It's as Janet would say, "What have you done for me lately?"

- Oxman says that Michael has had literally over 1000 lawsuits and that these types are not unusual in his life - they are common.

- Oxman says: In this particular case, I have filed papers in this particular lawsuit which says, 'this is an accounting matter, and it's going to be based upon the documentation which is produced.' And, in that particular filing I complained that there was no documentation being produced by the other side, by the plaintiff. It's up to this jury to decide it, and they are going to decide it based on the documentation and I think what we're going to find is that it's lacking.

- King says that in the deposition Michael was "very articulate, very charming, nicely costumed, his hair is beautiful, you'd think he'd been on the camera his whole life."

- King says that Michael is clear and articulate but has no memory of anything, even multi-million dollar transactions that his business advisers acknowledge occurred.

- King says that more excerpts of Michael's deposition will be played in court tomorrow.

- Jim Moret talked about the Neverland animals and how the two tigers have been relocated, and that they have always been in great health.

-------------------------

Schaffel's attorney also called to the stand Florida businessman Alvin Malnik, who said he advised Jackson and found the singer bewildered by financial matters.

Malnik said he frequently loaned the singer money — $7 million to $10 million — all of which was ultimately returned. He said he once received an urgent call from Jackson saying he needed $1 million to buy a piece of jewelry for Elizabeth Taylor.

"The reason was that Elizabeth Taylor would not sign a release for her participation in the Fox special. He knew her well enough that he knew if he brought a piece of jewelry he could obtain the release, and that's how it was done," Malnik said.

Jackson, who had been living in Bahrain but last month announced he was moving to Europe, will not testify in person. In a videotaped deposition shown to jurors, the singer said he thought Schaffel had been paid because the business associate always seemed happy.

http://transcripts.cnn.com/TRANSCRIPTS/0607/05/ng.01.html

NANCY GRACE

Aired July 5, 2006 - 20:00:00 ET

(BEGIN VIDEO CLIP)

Michael Jackson is one of the most brilliant entertainers in the world. Michael Jackson sold over seven million compilation albums which is unheard of in the entertainment industry.

Look at his heart, look at his music, look at what he`s done for people. Look at the influence.

(END OF VIDEO CLIP)

VELEZ-MITCHELL: I`m Jane Velez-Mitchell sitting in tonight for Nancy Grace. Pop star Michael Jackson back in the spotlight but not on a concert stage. The music icon is facing a multi-million dollar lawsuit in a California court over business deals. It`s the ongoing saga that keeps getting more and more bizarre. And for the very latest let`s go straight out to my friend Jim Moret, "Inside Edition`s" chief correspondent. Jim, what is the very latest on this lawsuit by former porn producer Marc Schaffel against his former associate Michael Jackson?

MORET: Well first of all I mean there are two things that are undeniable. You listen to Michael Jackson`s music and you say he`s really a terrific writer, great entertainer. The other thing that`s undeniable, he`s had his share of legal problems. And this latest one is a former associate Marc Schaffel who`s claiming that he`s owed something in the amount of $3.8 million from Michael Jackson. You called him a former porn producer but in all fairness he wasn`t doing that when he was working with Michael Jackson.

He was just one of the latest business advisers, this during the time when there were the allegations of molestation in the last year and Marc Schaffel helped Michael Jackson in preparing certain videos to clear his name and so forth, and also worked with him on a relief album that is still yet to come out. But Michael Jackson`s people will say no, in fact, Marc Schaffel was siphoning money from Michael Jackson and he owes Michael Jackson money. So it`s yet another battle in Michael Jackson`s life, this one in a courtroom.

VELEZ-MITCHELL: Well, yeah, absolutely. The reason I mention that is that there`s a possibility, according to some published reports, that this trial could get ugly. We`re very pleased to have with us tonight Howard King, who is Marc Schaffel`s attorney, who is in court. What do you say to reports that have been published, sir, that this could get to be a slime fest, in other words if Michael Jackson`s people come out and start talking about Marc Schaffel`s past, which has purportedly involved production of some adult materials, that then your team may actually talk about details of intimate conversations between Michael Jackson and Marc Schaffel?

HOWARD KING, MARC SCHAFFEL`S ATTORNEY: Well, it`s already a slime fest and the only defense to Marc Schaffel`s claims so far have been that he`s an adult film producer or as Michael Jackson`s people like to call him, a gay porn producer. So we`ve warned them when they question Mr. Schaffel, if they ask him anything about Mr. Jackson`s knowledge of Mr. Schaffel`s background, they`ll hear intimate details of their conversations.

VELEZ-MITCHELL: Like what? Can you give us a taste? I mean is this going to be explosive?

KING: Well, I hope it doesn`t come up because it has absolutely nothing to do with the claims. So it`s only going to come up if they open the door. And if they open the door, if there`s anything left that can be explosive about Michael Jackson, this will be it.

VELEZ-MITCHELL: Alright. Well before we go any further, let`s listen to an audio recording played in court, we understand, today, of Michael Jackson purportedly talking with Marc Schaffel.

(BEGIN AUDIO CLIP)

Next message, received March 29th at 10:49 p.m.

Hello? Marc, its Michael. Let`s break all time records Marc. I want to make history so badly. I`m speaking from the bottom of my heart, and Marc, please, please, please never have any doubts, I really like you. I love you. I`ve been betrayed so much by people. And I want us to really, really be friends and to be, to conquer the business world together, I really do. I thought about it a lot. But please be my loyal, loyal, loyal friend. I love you and thanks so much. Bye-bye.

(END OF AUDIO CLIP)

VELEZ-MITCHELL: And let`s go back to Howard King, Marc Schaffel`s attorney. What does that recording prove in your mind? What`s the point of it and others that were played?

KING: Well, listen, Michael Jackson spent 18 months denying he even knew who Marc Schaffel was. So the recording shows he knew who he was, but more importantly it shows Michael Jackson`s character. This is how he sucks people in, he professes love of them, he professes a lifetime of working together, and then he dumps them. He`s done this over and over and over again.

VELEZ-MITCHELL: So be forewarned ah? I mean if you go work for Michael Jackson, most of us around the world are aware of his reputation for cutting people off. Brian Oxman, Jackson family attorney. You`ve been listening to all of this, what do you say about the claim that Michael Jackson basically says he loves someone, uses them up and then discards them?

BRIAN OXMAN, JACKSON FAMILY ATTORNEY: As I listened to those tapes, they seem very familiar to me because that`s what Michael does when he calls people. But the business about cutting people up or cutting them off, I, frankly, don`t see it. And what I see is that when people have something to produce for Michael Jackson, he`s interested, and when they don`t, he`s no longer interested. It`s, well, as Janet would say, "What have you done for me lately?"

VELEZ-MITCHELL: Well you know Brian with most people if they`re owed $3.8 million, it would seem you could say okay, here`s the contract, here are the receipts, here are the canceled checks, but it`s never that way with Michael Jackson. It`s always so convoluted and complicated, different companies and working through people. Why is it always that difficult? You yourself told me a long time ago he`s been through more than 1,000 lawsuits.

OXMAN: For Michael Jackson Inc., there have been literally 1,000 lawsuits and these kinds of lawsuits are not unusual in his life. For businesses, the size of Michael Jackson, they are common. They are ordinary. In this particular case, I have filed papers in this particular lawsuit, which says this is an accounting matter, and it`s going to be based upon the documentation which is produced. And in that particular filing, I complained that there was no documentation being produced by the other side, by the plaintiff. It`s up to this jury to decide it, and they`re going to decide it on the documentation and I think what we`re going to find is its lacking.

VELEZ-MITCHELL: Okay, Howard King, you did a depo of Michael Jackson in London last September. What was he like? Because many people wonder about his mental and emotional state?

KING: He`s very articulate. He`s very charming. You know, he`s nicely costumed. His hair is beautiful. You`d think he`d been in front of the cameras his entire life.

VELEZ-MITCHELL: But mentally, is he clear, is he lucid, is he sharp?

KING: Well he`s certainly clear, articulate and lucid. He professes no memory of anything, even multimillion-dollar transactions that his business advisers acknowledge occurred.

VELEZ-MITCHELL: And I understand that he doesn`t have to come to the United States and testify in court in a civil trial. So all we`re going to get is the deposition, is that right?

KING: Well we`re going to get excerpts of his deposition tomorrow and whether or not he should have been here in response to a subpoena will be decided later.

VELEZ-MITCHELL: Alright, well, more to come on this one I`m sure. And we`re going to be back with a very interesting development in just a moment on Michael Jackson. It`s an exclusive that Jim Moret broke, we`ll tell you about it in a second.

Quickly to tonight`s all points bulletin. FBI and law enforcement across the country on the lookout for Kevin Lamont Carter in connection with the murder of his girlfriend, 17-year-old Angela Marshall. Carter, 34, 5`10" 220 pounds, black hair, brown eyes. Any information, call the FBI 251-438-3674. Local news next for some of you. We will all be right back. Remember, did a Florida man kill his dad to inherit money? 3:00 to 5:00 eastern, "Court TV", you don`t want to miss it.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: We are talking Michael Jackson, lots of new developments, as always. Let`s go right out to "Inside Edition`s" Jim Moret who broke a story about Neverland. Tell us about it Jim?

MORET: I`m guessing that you`re talking about the animals. That is basically it and I`ve spoken to Brian Oxman about this, it`s really not a secret. Michael Jackson has been trying to find new homes for his animals and there have been allegations by some animal rights activists that the animals have been neglected. I went out recently, as a matter of fact last week to Tippy Hedron, the actress from the Birds, has an animal sanctuary, she takes care of wild cats.

And she is now housing permanently Michael Jackson`s two tigers that were part of his menagerie, one of them interestingly enough is named Thriller. Her fiancee has been the veterinarian for some 13 years for Michael Jackson`s ranch and they state unequivocally the animals were never neglected. They`ve been trying to find suitable homes for all the animals and we saw them and they looked like they were in good health. Brian Oxman told me himself that at no time, even when Neverland was on a skeleton staff, were those animals neglected. And tomorrow on "Inside Edition" we have a report on that very subject.

VELEZ-MITCHELL: Well absolutely good news. We`re very happy to hear that those animals are in safe hands, Tippy Hedron, very well-known for her beautiful work with animals. And of course we have so much to say about Michael Jackson, but we`re out of time. We can tell you that he might be moving to Europe, that he plans on a new album, that he`s been spotted in Ireland, that he recently visited Paris. We could go on all night but we don`t have any more time. Michael Jackson, always fascinating.

<div class='quotetop'>ZITAT (666 @ 06. Juli 2006 - 12:24 Uhr) [snapback]122109[/snapback]</div>

Zitat

Mitchell asks what kind of conversations, is this gonna be explosive?

- King says he hopes it doesn't come up because it has absolutely nothing to do with the claims. It will only come up if they open the door. If there is anything left that can be explosive about Michael Jackson this will be it.
Na los raus damit ich wills wissen
[/b]

Ich wette dann kommt sowas wie "Michael hat sich von Marc Filme geborgt..."

Jackson Lawyer Targets Lack of Documents
By LINDA DEUTSCH
July 06, 2006

A former associate suing Michael Jackson testified Thursday that he never got a receipt for a $300,000 payment he claims he delivered in South America on the pop star's behalf.

The issue of the mysterious payment was used by Jackson attorney Thomas Mundell as an example of big-ticket claims made by plaintiff F. Marc Schaffel that are not documented.

Schaffel, who worked with Jackson on various projects for three years, has claimed the pop star owes him $3.8 million in royalties, expenses and other debts. But outside court Thursday, Schaffel's lawyer, Howard King, said disputes over receipts, statutes of limitations and work agreements led him to cut the claim by more than half, to $1.6 million.

Schaffel testified Wednesday that he took the $300,000 from one of his own accounts and was never fully repaid. He said Thursday that he had loaned Jackson millions of dollars and never once got a receipt.

In court, Mundell showed jurors enlargements of ledgers that Schaffel submitted and pointed out discrepancies in accounting.

Mundell asked if Schaffel had any documentary proof of the $300,000 payment. Schaffel said he did and handed a paper to the lawyer. But after a private conference with the judge it was not shown to the jurors.

King said outside court that the paper was a withdrawal slip from a bank in Brazil.

Later on the stand, Schaffel added more details, saying he initially took money from an account in Budapest to Brazil to buy a condo, but later withdrew it and at Jackson's request 'delivered it to its final destination in Argentina.'

Referring to the molestation charges Jackson was acquitted of last year, Schaffel added, 'The criminal case was at hand and it was a sensitive time. It was a very, very private transaction of a very sensitive nature for Mr. Jackson. And I never imagined he would not pay it back to me.'

Schaffel also testified that when he and Jackson decided to work together the pop star gave him $2 million for use in the business and discussed making a charity record.

Mundell pointed out that Jackson did not have checks for the account in which the money was deposited and never made a withdrawal, but that Schaffel did.

In testimony and a declaration read to the jury, Schaffel also told of loaning Jackson $500,000 after the Sept. 11, 2001, attacks on the World Trade Center. He said Jackson was initially stuck in New York, then took a bus across the country and called along the way, saying he needed the money to find shelter underground.

Schaffel said Jackson pulled up to his house in the bus and collected the cash.

Jackson's attorney challenged the story as a lie and noted there was a financial entry for $500,000 on Sept. 18 but it was just a transfer from one Schaffel account to another. Schaffel denied lying.

At day's end jurors were watching a videotaped deposition by Jackson, who will not testify in person. He claimed a poor memory about his finances but recalled Schaffel as a man 'who came to me with ideas.'

Jackson said he became disenchanted with his new associate in November 2001 when someone gave him a video showing Schaffel directing an episode of a gay porn movie.

'What shocked me was that he was involved in that whole circle and I didn't know. It surprised me,' he said.

(AP)

Jackson adviser: trial signals star's new approach to business

LINDA DEUTSCH, AP Special Correspondent

July 7, 2006 12:10 AM PST

SANTA MONICA, Calif. (AP) - Michael Jackson's decision to fight his former associate F. Marc Schaffel in a civil suit now under way is symbolic of ''a new day'' in Jackson's financial life, the man who is restructuring his business affairs said.

L. Londell McMillan, a New York lawyer who has attended every day of the current trial, was responding to a comment by Schaffel's attorney Howard King, who told reporters it would have been less expensive and more expeditious for Jackson to have settled the case before it went to trial.

''It would have been to all parties' benefit to settle,'' McMillan said Thursday. ''But Mr. Schaffel's request was outrageous. And Mr. Jackson is taking a new approach to people trying to hijack him with dishonorable claims.''

''This is a very important case,'' he added. ''It's the beginning of a new day defending against bogus claims and accepting responsibility for his business.''

Schaffel has sued Jackson claiming that the star failed to repay loans, expenses and salary. At first, he sought $3.8 million. But after a ruling by the judge involving the statute of limitations and other problems, the claim was cut to $1.6 million.

King was asked if he would have pursued the suit if he knew that the claim would be reduced by more than half.

''We would have litigated it differently,'' the attorney said.

Attorney Thomas Mundell, who is representing Jackson in the civil suit, said Jackson has decided ''he's no longer going to be a target.''

King said of Jackson, ''In the right case he should fight like hell. But this is not a frivolous case.''

McMillan, who took over Jackson's finances last month, said that Jackson has been victimized by a series of advisers ''who seem to be part of a group with similar motives.''

With other lawsuits on the horizon, he said, ''this is the beginning of Mr. Jackson's attempt to defeat all of them.''

He said the outcome of the current trial is up to the jury, but ''the victory is in taking the case to court. It sets the stage for Michael Jackson performing differently in his business life.''

AP-WS-07-07-06 0304EDT

http://www.newspress.com/Top/Article/artic...765921697595523

Rita LD: Leo Terrell and Brian Oxman July 6 2006

http://site2.mjeol.com/modules/PDdownloads...id=2&lid=20

Description:
Air date: July 6 2006

Dimond come on and spreads unfounded rumors about what Schaffel could...may...might know about Michael Jackson. She offers no proof of any of the shady speculation

Leo Terrell and Brian Oxman also appear after Dimond is through.
-Terrell blasts people who have sought to profit off of Jackson and makes inferences that Dimond and those like her have sought to make their careers off of trying to bring Michael Jackson down
-says that he hasn't heard anything about checks, receipts, etc proving that Jackson owes Schaffel anything
-says people want to attack Michael Jackson

--------------

here is a summary of the important bits from today's court day!

(these are taken from my notebook so please excuse any errors b/c it is not easy typing while reading at the same time and plus my brain is FRIED...lmao)

* Schaffel claims he never got a receipt for a $300,000 payment he claims to have delievered in South American on MJs begalf.

* The entire three years he worked with MJ he never once got a receipt (yet he managed to save phone conversations???)

* Outside of court, King disclosed that disputes over receipts, statutues of limitations, and work agreements have led him to cut the claim against MJ almost in half, eliminating costs that could not be documented or were too old to be claimed! The claim is now $1.6 million instead of $3.8 million!

* Mundell showed the jury enlargements of ledgers that Schaffhell submitted, and pointed out discrepancies in accounting.

* S said that when he and MJ decided to work together that MJ gave him $2 million for use in the business and discussed making a charity record....

* Schaff doesn't want to talk about the $300,000!! Which was actually delivered to Argentina..

DIANE DIMOND ACTUALLY DOUBTING SCHAFFHELL'S CASE - gasp.

* (Missed this part myself, but got this info from posts here on the board) - Schaffhell wants to own Neverland and turn it into a winery

* Schaff said he loaned MJ 500k after September 11 2001 attack...said MJ was stuck in New York originally then took a bus back across the country and called along the way, saying he needed the money to find shelter underground. He then said MJ pulled up to his (Schaffel's) house in the bus and collected the money!

* Mundell said the story was a lie and noted there was a financial entry for 500k on Sept. 18th but it was just a transfer from one Schaffel account to another.

* Video of MJ showed - MJ claimed a poor memory about his finances but recalled that Schaff-ck was a man "who came to me with ideas." Said he became disenchanted with Schaffel in November 2001 when someone gave him a video, showing Schaffhell directing an episode of a gay porn movie.

* MJ - "What shocked me was that he was involved in that whole circle and I didn't know. It surprised me."

MJJF

Nancy Grace Transcript from tonights show:

VELEZ-MITCHELL: I`m Jane Velez-Mitchell in for Nancy Grace. Pop star Michael Jackson fighting allegations by a former business associate who says the singer owes him millions. A civil lawsuit under way in Santa Monica, California featuring Michael Jackson on voice mail. That`s like a new instrument. Fascinating clips that we have obtained and will play for you for the very latest on all of this we are delighted to have in studio my dear friend and colleague Diane Dimond, not only an investigative reporter but author of the fabulous Jackson book, "Be Careful Who You Love," which is sitting right on my dining room table. Diane, what is the very latest?

DIANE DIMOND, INVESTIGATIVE REPORTER: You don`t even need to read that book because you were there with me for most of it. The very latest is this, Fred Schaffel is suing Michael Jackson for $3.8 million. Part of his claim is that he took $300,000 from Michael Jackson, paid off somebody in Brazil for something. We don`t know what. The judge will not let us know what that was. That of course demonstrable because it lets everybody know, see, Michael trusted me with all this money, and I put out a lot of money and he owes me 3.8. Well, today in court we realize now he doesn`t have receipts for all of this. And his 3.8 request has now gone down to 1.6 million. He cannot come up with receipts for that 300,000 and others. He had a receipt, showed it to the judge. She rejected it.

VELEZ-MITCHELL: Well, what a shock. I mean, this is a guy who asked for money in paper bags and says money is French fries and super size it if he wants a lot of money. No wonder there`s no receipts.

DIMOND: Well that`s what Michael Jackson did in calling it French fries and whatnot. But this fascinates me because during the criminal trial Frederick Marc Schaffel of course was one of the unindicted co- conspirators. And I was told by many sources close to Mr. Schaffel and close to the investigation that Mr. Schaffel was almost anal in keeping receipts. He would keep a receipt for $1.29 from the 7-Eleven for some aspirin and then he would put in for it. So now that he suddenly doesn`t have any receipts I`ve got to think, hmm.

VELEZ-MITCHELL: Very curious. And luckily, we have Marc Schaffel`s attorney with us tonight, Howard King. We are delighted to have you back, sir. Well, you`ve been hearing Diane Dimond. We`re all wondering how did $3.8 million become just over $1 million? Why the switch? And was it mid- stream or did we just forget to ask?

HOWARD KING, MARC SCHAFFEL`S ATTORNEY: No one asked. I mean, this was based on a ruling made before the case even went to trial.

VELEZ-MITCHELL: Yeah but I mean how can you be sitting there in court day after day discussing how this man`s owed $3.8 million and nobody figured out that it`s really just over $1 million or $1 1/2 million? That to me is the absolute metaphor of the craziness of Michael Jackson`s life. That even in the trial nobody can figure out -- and this happened in the criminal trial. We couldn`t figure out a lot of times what was going on.

KING: Listen, I made an opening statement over a week ago where I asked for a million six. I didn`t add it up, and nobody else did. I mean, the fact of the matter is he`s owed a lot more money. Diane`s right. There are no receipts for all these cash transactions, and in fact I asked Marc Schaffel on the witness stand today what do you think about not getting receipts? And he goes, well, I`m not going to give Michael Jackson money anymore without getting a receipt.

VELEZ-MITCHELL: Well that`s a good thing. Be forewarned, anybody, if you do business with Michael Jackson get a receipt. Now, we have these fascinating tapes we want to play for you. They really are incredible. It`s incredible that Michael Jackson would leave these kind of voice mails. Purportedly it is him. Let`s listen to a conversation involving Marlon Brando, the late great actor.

(BEGIN AUDIOTAPE)

MICHAEL JACKSON: Marc, we must... Marlon Brando has been pushing. And he is a wonderful man. He`s a God. We have to get this done. We want it done before Christmas. Put together a business plan. The whole thing is fine for TV. He just wants to make a big deal. He wants a lot of money and we would own it together... We`ll form our own company. Start putting that together so when we see him, when I see him.. I can give him a presentation that we have been busy working. He really wants it. I mean, I think that`s he`s not going to be living too much longer, that`s what it is I think. Please Marc, get this done. Let`s get the jive thing done. I need that money for the house. Ah, let`s move mountains. The album is going to be turned in soon. He`s going crazy. So things are looking good. I hope to talk to you soon. I`ll see you today at the studio at 3:30. I love you very much. Thank you, bye.

(END OF AUDIOTAPE)

VELEZ-MITCHELL: Well, you know, Diane Dimond, you raise a point. We were listening to this. That he sounds very alert, very cogent. There`s been so much talk about possible drug problems in his past, which he of course has denied aside from the treatment he went through in the `90s.

DIMOND: Right, the pain pills.

VELEZ-MITCHELL: But he sounds good there. He did a deposition in London which was played in court today. You have actually seen it apparently. He apparently looks sharp there too.

DIMOND: I have seen portions of it. And first of all, I was taken with his voice is kind of deep down here like this. Instead of the wispy little voice. There are always two and three sides to Michael Jackson, the man who`s in charge, I`ll see you at the studio at 3:30, the man who talks like this, and the man who talks like this. And I think it depends on his situation. If he`s in trouble he suddenly becomes the wispy wafey kid who just doesn`t really understand what`s going on around him.

VELEZ-MITCHELL: But this is sort of vindication for everybody who said he`s totally out of it, he was carried into court. Because he didn`t speak a lot as you know, we were standing there outside court, it was hard to tell. He would just shuffle by. And everybody was reading whatever they wanted into it, and now it seems that perhaps he`s a lot more together than we thought.

DIMOND: Well, remember, these tapes were taken, Mr. King could probably tell you better, in 2003 and 2002 maybe. These two had a relationship for about three years, these two men, and they put together charity singles that sort of didn`t go anywhere. And they had all these projects together. So I don`t really know when those tapes were.

VELEZ-MITCHELL: Right. And Brian Oxman, the deposition was apparently last September in London. So that is more recent. Do you think that this trial in some odd way is painting Michael Jackson in a better light than he was painted in the criminal trial, even though he was acquitted in the criminal trial?

BRIAN OXMAN, JACKSON FAMILY ATTORNEY: I think we see a real Michael Jackson when we watch the deposition. We see what kind of a man he is. And it`s the kind of a man that I know him to be. I like him. I`ve always liked him. And I`ve always thought that he was aware of his business dealings. Michael`s only problem is it`s such a commotion that goes on around him that there really isn`t anybody who can handle this kind of a commotion. And he has people who he hires to do this and oftentimes they`re simply not capable and as a result you find these kinds of lawsuits.

VELEZ-MITCHELL: Alright. Howard King, Marc Schaffel`s attorney, I understand your client was on the stand. A lot happening in court. He was on the stand, and you had said -- everybody was talking last night after you said on this show, the NANCY GRACE show, that if they get ugly, meaning the Jackson camp, and start talking about Marc Schaffel`s past as a gay porn producer, that you`re going to get ugly and start saying explosive things, revealing details about Michael Jackson`s past. Everybody wanted to know what details? Can you give us a hint? Is it of a sexual nature? Is it about the Brazil issue?

KING: They did not ask Marc Schaffel one question about his background today.

VELEZ-MITCHELL: So basically, you didn`t go there either.

KING: I did not.

VELEZ-MITCHELL: But I bet you, Diane Dimond is going to go there. Diane, what do you think Marc Schaffel knows about Michael Jackson?

DIMOND: Well, I`ll tell you, there are no saints in this story. I did a three-part series on Marc Schaffel for another network I work for, and he`s left a long string of people who complain about him. Many called him a con man. Then you have Michael Jackson on the other side who has never met a lawsuit he didn`t like or didn`t get involved in. It just seems to me these two were such intimates that they both probably know sexual intimacies about each other. Not that there was any relationship between them. But what their desires were, what their hopes were, what they did when they kicked back at night and had a glass of Jesus juice. You know, I think both of these guys could take each other down. But this was really supposed to be an accounting case. You owe me X numbers of dollars.

VELEZ-MITCHELL: Of course we`re all wondering is there still, Brian Oxman, Jackson family attorney, another secret to be revealed? This is kind of like the search for the holy grail. We all keep wondering, because he is such an enigma, what is the real Michael Jackson? And we wonder, does Marc Schaffel have the answer to that?

OXMAN: There is a secret in this case, and that secret is no ticky, no money. Marc Schaffel does not have the documentation to establish this kind of case, and that`s becoming apparent in the courtroom.

RICHELLE CAREY, CNN ANCHOR: Hello, everybody. I`m Richelle Carey with your headline prime news break. President Bush says diplomacy is the key to settling North Korea`s nuclear worries. The U.N. is still debating the situation. North Korea defends this week`s missile firings and vows further launches.

New York City police say they`ve arrested a man who terrorized subway riders this morning. They say he was wielding two battery-powered saws and lashing out at people. One man was critically hurt.

We may soon be blaming global warming for another thing an increasing number of western wildfires. Researchers say that wildfires increased suddenly in the 1980s and seasons also became longer. You can find the study in today`s online edition of the journal "Science."

And happy birthday, Mr. President. George W. Bush is 60 today. White House spokesman Tony Snow says it`s not a big deal for his boss, it`s just one day after being 59. That is the news for now. Thanks for watching. Keep it here. I`m Richelle Carey.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: I`m Jane Velez-Mitchell filling in for Nancy Grace. Of course we`re talking Michael Jackson, who is back in the spotlight over, what else, a lawsuit filed by a former business associate who says the kooky king of pop owes him almost 4 million, now it`s down to about 1 1/2 million in change and he is set to collect, but, says team Jackson, not so fast, they`ve countersued claiming businessman Marc Schaffel owes Jackson money. And throughout it all some fascinating clips of Jackson purportedly calling Schaffel desperate for money, which he calls French fries, and when he wants a lot of it he says super size me.

Now, over the commercial break Diane and I have been cooking up some really tough questions for you, Marc Schaffel`s attorney, Howard King. And this is the crux of the matter. You had said purportedly, correct me if I`m wrong, that Schaffel put out $300,000 for a mystery man, Mr. X, originally in Brazil, now we hear it may be Argentina, but then testifying today Schaffel supposedly said on the stand Michael Jackson gave me $2 million for record expenses as well as the $300,000 that I can`t talk about what it`s for.

KING: That`s incorrect. He -- Marc Schaffel pulled that $300,000 out of an account he had in Europe, and --

VELEZ-MITCHELL: Isn`t there a record of that, Mr. King?

KING: Absolutely. It was exhibit 401 at trial today.

VELEZ-MITCHELL: And that wasn`t good enough for the judge?

KING: Sure, it was. I don`t know what Diane was talking about. That was admitted into evidence right after lunch.

VELEZ-MITCHELL: We`re going right off the wire copy that says, quote, this is quoting Schaffel, "He gave me the $2 million for the record and expenses and the situation I can`t talk about," he said, referring to the $300,000. So that implies that he was talking about Jackson giving him money.

KING: Two different transactions. In 2001 Michael Jackson invested $2 million with Marc Schaffel to make "What More Can I Give." And Marc Schaffel made it. In 2003 Marc Schaffel took care of a personal matter for Mr. Jackson in South America using his own cash.

VELEZ-MITCHELL: Now, you talk about this personal matter in South America and that of course sets alarm bells off for Diane and myself because we were in the Jackson trial hearing about the alleged conspiracy, of which Michael Jackson was acquitted --

DIMOND: And Brazil was involved in that.

VELEZ-MITCHELL: And Brazil was involved in that. So should we put two and two together or can you tell us no, don`t put two and two together, this has nothing to do with that alleged conspiracy to take that boy that accused Michael Jackson and his family out of the country?

KING: Well, I hate to dash your hopes, but it was Argentina.

DIMOND: Oh darn.

VELEZ-MITCHELL: Now you tell us.

Mr. King, I`m reading the wire copy. This is by Linda Deutsche of the AP, the senior member of the press corps out there. Everyone greatly respects her. And it says that Schaffel was asked about the $300,000 today, do you have a receipt? He said he did. He handed the paper to a lawyer, but after a private conference with the judge it was not shown to the jurors. So is there a receipt for this or not?

KING: Yeah, that was before lunch. Things changed.

DIMOND: Gotcha.

KING: After lunch it came in.

DIMOND: Welcome to the world of Michael Jackson.

VELEZ-MITCHELL: One thing doesn`t change, though, and that is "What More Can I Give" has not yet been officially released. Let`s hear another fascinating clip about Michael Jackson talking about the saga of the charity album, the charity project, "What More Can I Give."

(BEGIN AUDIOTAPE)

MICHAEL JACKSON: Marc, call Al first thing in the morning about my orders. You tell him the single has to come out now, what more can I give? They are planning other anthems, we have to be first. And I want Sony, they gotta go to Sony (INAUDIBLE) and it has to enter at number one and stay there for like, um. No, no, no, no to make a record, we want to have it like two months. Cause people want to do something because sympathy USA for Iraq, it`s a beautiful thing to do. Okay? We gotta do this Marc. It`s important. You went through all that work, I went through all that work of writing the songs. (INAUDIBLE) putting the film together. I`m putting the film together. You know, I want, you gotta send me Marc, all the outtakes or else I`m not approving it. I`m not going to let it come out unless I see all the outtakes. Don`t be holding anything back at your house. I want to see everything. Okay? Get on this first thing in the morning, it`s important. Thank you.

(END OF AUDIOTAPE)

VELEZ-MITCHELL: Alright. Well, we have to go straight out to Jackson family attorney Brian Oxman. It would seem that Michael Jackson sort of lurches from tragedy to tragedy, crisis to crisis, that we are all experiencing as a nation saying, hey, I`m going to come out with a charity project but doesn`t seem to get it to fruition. We`re talking about the 9/11 tragedy. Then we have the Iraq war. Then we have Katrina, and he has hasn`t delivered on these. Why not?

OXMAN: Who you utilize to make these projects happen is all-important and it is the determining factor. In this particular case it was apparently Mr. Schaffel who was being the one utilized, and nothing ever happened as a result. So your choice of promoter and your choice of your distributor as to who`s going to make this happen determines whether it does happen, and in fact what you`re saying is true. The selections have not been very good.

VELEZ-MITCHELL: Well, Howard King, how do you feel about your client being blamed for these charity projects not being released?

KING: Well, listen, the record was done. I`ve heard it. It`s beautiful. Sony would not consent to its release. Probably having something to do with the fact Michael Jackson called Tommy Mottola, the head of the label, a racist.

VELEZ-MITCHELL: Alright. Well, we have a caller from -- Mark, he is from Nevada. He`s been waiting patiently. Your question, Mark.

MARK: Yeah, why is it that Michael Jackson made all of his money and popularity singing pop music and he doesn`t do -- he does everything but pop music now?

VELEZ-MITCHELL: Well, I mean, this is a broader question that maybe I could ask our favorite psychoanalyst Bethany Marshall, why is it that these stars, when they get into their late 40s can`t simply retire gracefully and exit the stage? Why do they have to keep promising -- and he`s not the only one. We`re inundated with all this -- we`re killing a lot of trees so that people`s egos can stay elevated.

MARSHALL: Well, I mean, I think that what happens over time is the person`s identity, self-esteem, maybe even their narcissism, if you want to use the clinical term, kind of gets tied to the camera. And so their self esteem kind of rises and falls on the smiles or frowns of others and they sort of get addicted to the spotlight. But I think we also can take a look at, I mean Michael Jackson took a huge blow even though he was acquitted. And it might be that he`s not really generative or productive in terms of new albums and works at this point because he really is trying to psychologically recover, even though he didn`t really experience the consequence of a conviction, he is experiencing psychological consequences at this point.

VELEZ-MITCHELL: And there are a whole bunch of plans that we`ve been hearing about. Diane Dimond, we hear that he`s going to be moving to Europe, he`s been spotted in Paris, he`s been in Ireland. What do you make of this? I know you have said publicly you don`t think he`s ever coming back to the United States.

DIMOND: I don`t think so. Too many child protective services people, too many subpoena servers. I don`t think he`s coming back here. Where will he land? I don`t know. But I think if he really wants to feel protected it should be a country with no extradition treaty to the U.S.

VELEZ-MITCHELL: Which is Bahrain, right?

DIMOND: Yes.

(COMMERCIAL BREAK)

VELEZ-MITCHELL: You can`t have a conversation about Michael Jackson without talking about Neverland. Everybody`s wondering what`s up with Neverland? Jackson family attorney Brian Oxman, we got word and we were very happy to report last night that the -- at least some of the animals, some of the big cats have been taken to Tippie Hedren`s sanctuary. She of course Melanie Griffith`s mom. So they`re in good hands. They`re looking for good homes for the other animals. But what`s going to happen with Neverland? Is he going to sell it? Is it shuttered now? Is there anybody working there?

OXMAN: Well, all I can say is that those cats must be in pretty good heaven because with Melanie Griffith around I`d like to be with them too. No question about it.

VELEZ-MITCHELL: Very good way of sidestepping the question. Brian what`s happening with Neverland?

OXMAN: Neverland is doing just fine. It is not in the full-scale production that it was prior to the trial. Michael is undecided as to exactly what`s going to happen with it. And we`re all waiting for him to make a decision. And when he does he will tell the world. But we don`t know any particular plans that he has other than just to maintain it in its present condition.

VELEZ-MITCHELL: And Howard King, Marc Schaffel`s attorney, is this a vortex you`ve gotten into? I mean, after all there is a countersuit. Do you really think even in the best case scenario you`ll ever see any money or could you end up, I wish I`d never gone there?

KING: I`ll invite you out to Neverland once we own it.

VELEZ-MITCHELL: Ooh. Diane Dimond, I`m going to give you the last word on that one.

DIMOND: You know, I have some sources that know Mr. Schaffel very well, and they have always said that he would love to own Neverland, he would love to subdivide it, make a winery, have a bed and breakfast, you know, take all those beautiful cars out there, the Bentleys and whatnot, and sell them for more than they`re worth. So his answer does not surprise me at all.

VELEZ-MITCHELL: Wow. I love ending with a cliff-hanger because that`s exactly what it is. We`re going to have to see what happens to Neverland, who`s going to own it, who`s going to throw the next party there. Alright. We are out of time. Always fascinating to have Diane Dimond and Michael Jackson in the same conversation.

DIMOND: My pleasure.

VELEZ-MITCHELL: Tonight we remember Army National Guard Specialist Mark Melcher, just 34, killed in Iraq. Melcher, from Mount Lebanon, Pennsylvania, enlisted in the army shortly after graduating from North Catholic High School. Melcher enjoyed rooting for his favorite Pittsburgh teams including the Steelers. Melcher leaves behind his mom, dad, brother. Mark Melcher, an American hero.

We would like to thank all of our guests for their insight. And thanks to you at home for helping us track these very important cases. See you right here tomorrow night, 8:00 sharp eastern. Until then have an absolutely wonderful evening.

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http://transcripts.cnn.com/TRANSCRIPTS/0607/06/ng.01.html