Haim Saban

July 21, 2009
Haim Saban accused of tax dodge by jailed former advisor
By Matthew Belloni

Most lawsuits don't tell the whole story of a dispute. So we imagine a case filed this morning is just the tip of a gigantic iceberg.

Industry politico Haim Saban was sued in federal court by a former financial advisor who is currently in jail on felony charges of money laundering, conspiracy and identity theft, and is now claiming that Saban failed to pay proper taxes when he sold a company for $5.3 billion to Disney in 2001.

Here's the two-count complaint for declaratory relief, filed today by Marty Singer of Lavely & Singer.
Matthew Krane says he put together a tax plan that would allow Saban to avoid levies on a $1.5 billion profit from the sale of Fox Family Worldwide to Disney.
“The plan thus saved Defendants $150,000,000 or more in tax benefits while, at the same time, placing $60,000,000 in potential stock profit at Saban’s disposal,” the lawsuit claims.

Saban is a well-known industry political fundraiser for Democrats and a noted philanthropist. Much of his money comes from the sale of his Fox Family Worldwide (owned with Rupert Murdoch) to Disney.

Krane is a Hollywood lawyer and tax advisor who, as the LA Business Journal reported recently, has been in jail facing federal charges over money laundering and conspiracy in what a prosecutor has called one of the largest tax evasion schemes in U.S. history.

From the LABJ:
At the heart of the case is a shelter that Krane used to allow his star client, Haim Saban, to evade taxes on capital gains of $1.5 billion Saban made after selling his interest in the Fox Family Channel in 2001. In surprising testimony in 2006, the media mogul told the U.S. Sentate that his limited formal education prevented him from understanding the shelter was illegal. He ended up paying $250 million in back taxes and penalties.

That would appear to end it for Saban. But several insiders, most of whom did not want to be identified, pointed out that since a trial is in Krane’s future, it is possible – but by no means a certainty – that Saban or others could be touched by Krane’s ongoing legal troubles.
Well, consider Saban touched. Krane's beef appears to stem from claims filed by Saban against him for fraud and breach of fiduciary duty and unjust enrichment in Vienna, Austria. Saban is apparently attempting to prevent Krane from getting paid his full fee for orchestrating the complex deal, and Krane is fighting back with a very public lawsuit.

"More than seven (7) years after reaping astronomical profits from the Transaction...Saban sought to deprive Plaintiffs of the entire portion of the fee fully earned by the Plaintiffs for the work Krane performed for Saban," the complaint reads.
So now he's filed suit in Los Angeles to get a court to declare that he has "a legal right to the compensation (he) received in connection with the Plan" and that the Vienna action be governed by California law and time-barred because Saban knew about potential claims in 2005 and did nothing until 2008.
Of course, there are all sorts of other personal attacks thrown in as well, including that Saban has built his fortune "through forgery, perjury and fraud." Comments from all sides are likely forthcoming.

UPDATE: A Saban spokesperson has just issued this statement:
“Mr. Krane has been sitting in the Metropolitan Detention Center on charges of identity theft for over a year and has also recently been indicted by the U.S. Attorney in Seattle on a conspiracy count charging that Mr. Krane defrauded Mr. Saban and laundered illegal kickbacks he received in connection with recommending and brokering Mr. Saban’s investment in an illegal tax shelter. The Government has said Mr. Saban was a victim of this conspiracy and he has paid the IRS all taxes owed. Mr. Saban has brought a claim against Mr. Krane related to the fraud and his breach of fiduciary duty and Mr. Saban has been granted a preliminary injunction in his case against Mr. Krane and the illegal funds have been frozen in Austria. The frivolous claims made by Mr. Krane in this lawsuit are a transparent attempt to distract from Mr. Saban’s right to recover the money stolen from him by Mr. Krane.”

http://www.thresq.com/2009/07/haim-saban-accused-of-tax-fraud-by-jailed-former-advisor.html

Marlon Jackson's Nigerian Shrine to Jackson 5 and/or Slavery. Um, what?
By Rena Kosnett in news
Tuesday, Feb. 17 2009 @ 10:24AM

Continuing with the Jackson 5 family news:
The Jacksons are a family that keeps on giving, at least for those in the tabloid and psychology professions, what with Michael Jackson's upcoming Neverland auction, and the recent news that older brother Marlon is working on a deal to erect a history of slavery theme park/Jackson 5 museum/luxury resort complex in the Nigerian port city of Badagry. Apparently slavery tourism is big business, and developers, who reportedly include Haim Saban, creator of the hit 90s TV show Power Rangers, are capitalizing on it.

But let's take a few steps back and look at this news. Isn't the inclination to erect a museum dedicated to yourself, um, a little insane? (This is what makes me suspicious of Senator Roland Burris: he chisels everything he does into the walls of a stone mausoleum. It's creepy.) And then to pair a celebration of your family alongside a memorial for something as abhorrent and emotional as the history of slavery, and to make that memorial a theme park, and then to top it off with a five star resort replete with golf course and swimming pool, effectively multiples this crazy pill into a full bottle overdose.

Historians and community leaders have been decrying the "capitalistic exploitation of our tragedy" blues, but aren't mentioning the shining display of Freudian psychology in this project. One reading: Marlon Jackson is placing a history of slavery alongside, literally, a history of the Jackson 5, whose notoriously rigid father, Joseph, was a notorious taskmaster; this wonderland has got "**** you, Dad," written all over it.
One nice side effect of the weirdness: perusing old Jackson 5 videos.
http://blogs.laweekly.com/westcoastsound/news/jackson-5-brother-to-build-sla/

Comments

Larry says:
Joyful greetings,
My life as a star,I sufer untold hardship all the way.Micheal Jackson was a zen for the heavenly soul,that inspired the world so much that,this world of history will nerver forget the difference.
Micheal Jackson played most powerful role in the world to transform lives with soul starring performances.He was good enough.
we were soul brothers,I benefit from him through his website to send messages around world.
I'm very sad now,because I saw something strange about Micheal's death.He died in my birthday,I saw vision that very night that a white horse trying to visit me where I was sleeping with sparkling flames of heavenly powers.I saw a needle pierce at the white horse,then a sword on him too.
I felt that something may happen somewhere.
Micheal Jackson was my favorite muscian,and as you know my birthday I was playing his tracks all day,only to see in the CNN that Micheal,autopsy."It take away my breath" May his gentle soul rest in peace.
If Micheal Jackson family wants truly build "PEACE FOUNDATION" in Nigeria.
I will be a active member to stand for him.
With profound peace of mind,I love Micheal.
I am the founder of Niger Delta Peace Ambassadors.Peace-making,Peace-building,Peace keeping,only thing in the that gives joy.
Grace be with all of you.
Larry Tarawou
VEGAS PLAZA
Bayelsa state
Posted On: Friday, Jul. 31 2009 @ 7:45PM