December 5, 2005

Spitzer's report didn't name names. That's the media's job. LA TImes writer Charles Duhigg reported today that investigators in the Sony BMG payola scandel uncovered the names of two executives who "tolerated and condoned pay-for-play": Charlie Walk, the Columbia Records VP, and Sony Music Label Group U.S. Chief Don Ienner.

"Two sources said that documents collected by Spitzer indicated that Ienner and Walk were aware of and condoned pay-for-play. The source with firsthand knowledge of the investigation, who has seen the documents, also said the same thing. Two sources also said that Spitzer's investigators would have named Ienner, Walk and other Sony BMG executives in the body of a complaint if one were brought against the company — not as individual defendants, but as managers who knew about pay-for-play. The source with firsthand knowledge of the investigation confirmed this. When Sony BMG decided to settle, Spitzer's office agreed to the company's request that documents released by the attorney general not name any Sony BMG employees."

Walk was promoted to president of Epic Records on December 2nd.

Somewhat related:
Hits' Rumor Mill
recaps a Wall Street Journal article about the upcoming changes at Sony BMG. An excerpt:

"Among the things revealed is the sort-of bombshell that Stringer is now 'reluctantly prepared' to replace old pal and associate Lack, whose head has been called for by Bertelsmann. Citing people with knowledge of the situation, the Journal says 'it is now nearly certain that Mr. Lack will lose the CEO title -- and almost certainly before his employment contract expires in March.'"

And that $50 million Bruce Springsteen deal didn't over to well. Not a surprise.

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Posted by Glenn at 8:10 PM | | | Music Industry | Sony BMG