Media baron Rupert Murdoch's troubles are spreading across the pond from Britain to the USA.
The official, who has been briefed on the matter but declined to be identified because he is not authorized to speak publicly, said the review was based on concerns raised by Rep. Pete King, R-N.Y., and Sens. Jay Rockefeller, D-W.Va.; Barbara Boxer, D-Calif.; and Frank Lautenberg, D-N.J., among others.
King, who heads the Homeland Security Committee, is from a Long Island district that was home to many victims of the terrorist attacks in 2001.
The lawmakers suggest that allegations against News Corp. in Great Britain— including paying off British law enforcement authorities for news tips — violated the Foreign Corrupt Practices Act, which makes it a crime for companies with U.S. holdings to bribe foreign officials. They also want to know whether any U.S. citizens' privacy was violated.
"It is revolting to imagine that members of the media would seek to compromise the integrity of a public official for financial gain in the pursuit of yellow journalism,"' King said in a letter to FBI Director Robert Mueller. "The 9/11 families have suffered egregiously, but unfortunately they remain vulnerable against unjustifiable parasitic strains."
News Corp. shares tumbled 2.3% to $15.99, reflecting concerns about fallout on other News Corp. properties, including Fox News, The Wall Street Journal and the New York Post.
Department of Justice officials declined to discuss details of any review. "The department does not comment specifically on investigations, though anytime we see evidence of wrongdoing, we take appropriate action,'' spokesperson Laura Sweeney said. "The department has received letters from several members of Congress regarding allegations related to News Corp., and we're reviewing those."
The hacking scandal has ignited a political firestorm in Britain, prompting News Corp. to shut News of the World. The London tabloid, along with other Murdoch publications, is under investigation for possibly targeting the phone mail of a wide array of British celebrities and accessing the personal financial and medical records of former prime minister Gordon Brown's family.
Among the most egregious allegations: that News of the World hacked into the phone messages of Milly Dowler, a 13-year-old who was kidnapped and murdered in 2002. A Dowler family attorney has said World reporters deleted some messages, giving the family false hope that their daughter was alive.
The hacking scandal destroyed political support for News Corp.'s planned acquisition of a 61% stake in satellite TV operator British Sky Broadcasting, and Murdoch scuttled a $12 billion bid Wednesday. The company controls 39% of BSkyB.
Murdoch and son James, News Corp.'s deputy chief operating officer, initially refused to appear before a British Parliament committee investigating the hacking and bribery allegations, but they said Thursday that they will testify next week.
Rupert Murdoch, commenting on The Wall Street Journal's website Thursday, said he and fellow News Corp. executives handled the phone hacking scandal fallout "extremely well in every way possible," despite a few "minor mistakes."
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