Scandal spreads to Murdoch TV empire – Press – Media – The Independent
The American Department of Justice is understood to be monitoring the Italian court proceedings as part of a wider review of evidence of potential wrongdoing within the News Corp empire.
The DoJ probe was triggered by Britain’s phone hacking scandal and could lead to Mr Murdoch and the News Corp board being formally investigated under US anti-corruption laws.
But problems facing Mr Murdoch’s vast conglomerate are now in danger of spreading beyond his UK newspaper interests to his vast television holdings.
Mr Caiazza, a Naples-based computer security expert, received nearly £12,000 in monthly instalments during 2003 and 2004 from a News International bank account in London. Using the hacking nickname “Linixone”, he is accused of pirating satellite TV encryption cards produced by Nagra France, a company which held a contract to supply the technology to Sky Italia, a News Corp company.
After the discovery of the hacking of Nagra France’s smart cards, Sky Italia’s then chief executive Tom Mockridge, who is now in charge of NI in London, ripped up a multi-year contract with the company. A new encryption card contract was then awarded by Sky Italia to NDS, another News Corp subsidiary which was employing Mr Caiazza as a consultant, it says, for intelligence on pirating against it.
NDS technology is used by 85 pay-TV broadcasters around the world, including Britain’s BSkyB, DirectTV in the US and Foxtel in Australia.