Houston Chronicle

Federal prosecutor­s reviewing Bezos’ claims of extortion

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Federal prosecutor­s are reviewing accusation­s made by Amazon.com chief executive Jeff Bezos to determine if the National Enquirer’s parent company might have violated the terms of a nonprosecu­tion agreement struck over a hush money payment meant to help Donald Trump’s chances in the 2016 election, according to people familiar with the matter.

Bezos — the founder of Amazon and the owner of the Washington Post — on Thursday posted an account accusing the Enquirer’s parent company, American Media Inc., of trying to extort him into issuing a public statement about the supermarke­t tabloid, in exchange for the magazine not publishing embarrassi­ng and sexually explicit photos of him.

Bezos’ post suggested that AMI’s conduct might be a violation of the nonprosecu­tion agreement the company signed with federal prosecutor­s in New York in September, as part of the Justice Department’s investigat­ion into campaign finance violations by Trump’s former personal lawyer, Michael Cohen.

The deal requires AMI to “commit no crimes whatsoever” for a period of three years; if AMI breaks the terms, it could be charged with campaign finance crimes.

As part of the agreement, AMI admitted it paid former Playboy model Karen McDougal $150,000 before the 2016 election to silence her allegation­s about an affair with Trump.

Two people familiar with the matter said the office of the U.S. attorney in Manhattan is reviewing Bezos’ accusation­s to determine whether AMI’s conduct amounts to a violation of the terms of that agreement. A spokesman for the U.S. attorney’s office declined to comment.

American Media Inc. on Friday pledged to thoroughly investigat­e the extortion claims.

“American Media believes fervently that it acted lawfully in the reporting of the story of Mr. Bezos. Further, at the time of the recent allegation­s made by Mr. Bezos, it was in good faith negotiatio­ns to resolve all matters with him,” said the statement from the board, which is chaired by AMI’s chief executive, David Pecker.

The battle between the business titan and the supermarke­t tabloid had been building since January, when the Enquirer notified Bezos that it intended to publish text messages revealing his relationsh­ip with former TV anchor Lauren Sanchez.

About two days later, Bezos announced he was divorcing his wife, and the Enquirer’s story appeared shortly after. Bezos also hired investigat­ors to find out how AMI had obtained the texts.

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