MGM Director Leaves Board
By Howard Stutz, Las Vegas Review-Journal
Knight Ridder/Tribune Business News
LAS VEGAS, February 22, 2006. A founding member of the MGM Mirage board of directors who was indicted last week in connection with a Hollywood wiretapping scandal resigned his position with the casino company late Tuesday afternoon.
In announcing the resignation of prominent Los Angeles attorney Terry Christensen, a 35-year confidant of MGM Mirage majority stockholder Kirk Kerkorian, the world's second-largest casino company said it would place him back on the board once the legal issues are resolved.
"We are confident that after a trial on the merits, he will be exonerated," MGM Mirage Chairman Terry Lanni said in a statement. "Mr. Christensen has always put the interests of the company and its stockholders first, and we respect his decision to resign from the board. We value highly Mr. Christensen's counsel and commitment to the company, and once this matter is behind him, we look forward to welcoming him back to the board."
Christensen had been a member of the casino company's board of directors since Aug. 1, 1987.
Also Tuesday, Christensen, 65, pleaded not guilty in Los Angeles federal court to one count of conspiracy and one count of intercepting wire communications. He appeared in court with his wife and he has been free after posting a $100,000 bond. His trial was set for April 18.
Christensen is among 13 people facing federal charges in an alleged wiretapping scheme involving Hollywood celebrities and executives.
Christensen has been a personal attorney and adviser to Kerkorian, an 88-year-old billionaire and the founder of MGM Grand, the predecessor to MGM Mirage. Christensen spent a year as president of Kerkorian's wholly-owned Tracinda Corp. in 1987, helping the company form MGM Grand Air and the planning and formation of MGM Grand.
Prosecutors claim Christensen paid private investigator and alleged ringleader Anthony Pellicano at least $100,000 to illegally wiretap the phones of Kerkorian's former wife, Lisa Bonder Kerkorian, as part of a child support battle.
Christensen, who helped build the Los Angeles law firm Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro, faces one count of conspiracy and one count of intercepting wire communications. If convicted of both charges, he could face up to 10 years in federal prison.
Christensen, who represented Kerkorian in a variety of cases, allegedly sought details about Bonder Kerkorian during the high-profile legal battle with her former husband over child support in 2002.
Bonder Kerkorian wanted $320,000 a month from Kerkorian to support her then 4-year-old daughter but later admitted that she faked a DNA paternity test by using saliva she obtained from Kerkorian's adult daughter.
A judge later ruled that the child was entitled to $50,316 a month.
Kerkorian had a decade-long romantic relationship with Bonder Kerkorian, but they were married for only a month in 1999.
Last week, Kerkorian issued a one-sentence statement through Tracinda in support of Christensen: "Terry Christensen is a paragon of integrity who has always done the right thing throughout the 35 years I have had the privilege of knowing him."
Nevada gaming regulators said they were following the matter but weren't planning to take any action because state gaming regulations don't require a board member who is charged with a crime to be removed from that office.
Joann Wiggan, 52, a former SBC employee, also pleaded not guilty Tuesday to five counts of perjury in the wiretapping case. She was ordered to appear at a later hearing for the setting of a trial date..
Prosecutors contend that Pellicano illegally wiretapped the phones of Hollywood stars such as Sylvester Stallone and bribed police officers to run the names of more than 60 people, including comedians Garry Shandling and Kevin Nealon, through government databases.
The indictment of Christensen has sent tremors through the entertainment industry, leading to further speculation about who might be indicted next. Authorities haven't ruled out more arrests.
The Associated Press contributed to this report.
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Copyright (c) 2006, Las Vegas Review-Journal
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