Lawyers spar over Jackson's finances
Defense disputes prosecution claim star is near bankruptcy
SANTA MARIA, California (CNN) -- Prosecutors seeking access to Michael Jackson's financial records charged Friday that the singer "is facing financial peril" and said they need to get a detailed picture of his finances to present their child molestation case.
Jackson attorney Robert Sanger disputed the prosecution's gloomy assessment, although he conceded that "liquidity from time to time might be a problem" for the pop star.
On Thursday, after Jackson arrived late in court clad in pajamas, the accuser, now 15, testified that the pop star manually stimulated him on two separate occasions in 2003. (Full story)
The trial was in recess Friday, but lawyers were in court arguing over motions.
Sanger contended that regardless of the state of Jackson's finances, the records sought by the prosecution are irrelevant to the child molestation charges he faces.
"How does this advance the ball?" he asked.
Trying to get the trial judge in the case to enforce a subpoena for the records, Santa Barbara County prosecutor Gordon Auchincloss said, "We have more than enough reason to believe [Jackson] is on the precipice of bankruptcy."
Auchincloss said that when Jackson's debts and tax liability are added together, "He is looking at liabilities in the nature of $400 million."
"Michael Jackson has an insatiable appetite for money," Auchincloss said, charging that the pop star's annual spending was as much as $35 million, about three times his annual income.
But Sanger said the prosecution's assessment of Jackson's financial condition, based on an analysis from a forensic accountant, is inaccurate. He said the actual value of Jackson's assets "might be much higher" than the prosecution's numbers, and he said the prosecution's subpoena would involve providing a "tremendous number" of documents.
After hearing from both sides in court, and meeting with the attorneys in his chambers, Santa Barbara County Superior Court Judge Rodney Melville said he would rule on the subpoena next Thursday.
But he cautioned the prosecution: "I don't want to inundate the jury in court with a lot of figures that don't tell a story."
Auchincloss said the prosecution would be willing to narrow its request and would present Jackson's financial picture to the jury in "brief, broad strokes."
On February 23, Santa Barbara County District Attorney Thomas Sneddon subpoenaed Jackson's records from the Los Angeles accounting firm Holthouse, Carlin & Van Trigt. Both the accounting firm and Jackson objected.
In his subpoena, Sneddon argued that Jackson's financial records are needed to prove that he was motivated by his financial problems "to do whatever was necessary to preserve his public image" after the airing of a damaging television documentary in 2003, in which he held hands with his accused, who was then 13.
Jackson participated in a conspiracy to intimidate and control his accuser and the teen's family "for his own public relations purposes," Sneddon said in his court filing. He also said Jackson's present and future earnings as an entertainer "are directly connected to his public image."
The defense contends the records aren't relevant because Melville has already ruled the prosecution can't use Jackson's purported financial problems to argue motive.
The prosecution is seeking statements of Jackson's assets, liabilities and revenues; bank balances, asset and credit accounts; check registers; statements of unpaid debts and loan balances; and values for his real estate, property and the extensive music publishing catalog he owns.
It also wants statements reporting the publishing activity for his music catalog, which he co-owns with Sony. The catalog includes the rights to music by the Beatles.
Jackson, 46, was indicted in April by a state grand jury on 10 felony counts, including one count of conspiracy to commit child abduction, false imprisonment and extortion. Jackson has pleaded not guilty.
CNN's Miguel Marquez and Dree De Clamecy contributed to this report.
