Crone advised News of the World on phone hacking in 2004

The former legal manager at the now defunct News of the World has told the Leveson Inquiry he first advised the paper on phone hacking in 2004, two years before the first arrests were made in relation to the practice.

After being pressed by an impatient Lord Justice Leveson, Tom Crone, visibly concerned about breaching legal privilege, revealed that he had advised the paper on the practice two years before the then royal reporter Clive Goodman and private investigator Glenn Mulcaire were arrested and later convicted for hacking into the phones of members of the Royal family.

With Leveson anxious not to prejudice the ongoing criminal investigation into the practice, Crone was not asked further questions about the issue, but did add later that he believed the paper’s defence that hacking did not go beyond “one rogue reporter” was “erroneous from the outset”. Meanwhile, in a letter to MPs released today, News Corp boss James Murdoch said he had not read a key email sent to him in June 2008 by former editor Colin Myler that indicated the practice was not limited to the “rogue reporter”. One email in the thread warned of a “further nightmare scenario” arising out of a phone hacking case brought forward by Professional Footballers’ Association CEO Gordon Taylor.

Moving on from matters of phone hacking, Crone described the News of the World’s use of private investigators. He said the only ones he knew of that were commissioned by the paper were Mulcaire and Steve Whittamore, the PI involved in personal data breaches uncovered in Operation Motorman. He added that PIs were not used at the paper after the Goodman-Mulcaire convictions in 2007, and that Myler introduced measures to “eliminate illegal or unethical practices”.

Crone’s written evidence also stated that private investigators were commissioned “on a handful of occasions” to check matters that may arise in post-publication litigation.

Crone told the Inquiry he was “not a guardian of ethics” and that his job was merely to “advise on legal risk”.

He denied being consulted about plans for a follow-up story to the paper’s notorious 2008 splash on Max Mosley that accused the ex-Formula 1 boss of taking part in a Nazi-themed orgy. Crone also claimed he was not asked to advise on the posting of a video of Mosley apparently engaging in the orgy to the paper’s website. He said he felt the footage was “pushing it”, but did not advise for it to be removed.

Mosley sued the paper for breach of privacy in 2008 and was paid £60,000 in damages. Crone claimed he was not asked to advise the paper in relation to any appeal, and said he was unaware if chief reporter Neville Thurlbeck had been disciplined after Mr Justice Eady’s ruling on the case.

Crone received a thorough grilling on his involvement from a stunned Lord Justice Leveson and Robert Jay QC. “Here was a high court judge,” Jay said, “was it not of interest to you…didn’t you feel that it fell within your jurisdiction?” Crone responded it did not.

In his testimony he also defended the publication of the Mosley article, arguing it was a “justifiable story without the Nazi element”, but conceded that Thurlbeck’s emails to two women involved in the orgy about a follow-up story were “close to” blackmail.

Also speaking today was Julian Pike, a partner at Farrer & Co, which has advised News International for around 25 years. He revealed that he knew in April 2010 that surveillance ordered by the News of the World was being carried out on phone hacking victims’ solicitors Mark Lewis and Charlotte Harris, but did not know of its nature or who was conducting it.

One hoped, Pike said, that the paper “would be able to carry out a very straightforward job of surveillance”. He denied knowledge of Derek Webb, the PI hired to survey Lewis and Harris, in 2010, and insisted that a surveillance operation would not always involve a private investigator, noting that a freelance journalist may also be commissioned to do the work.

Farrers was commissioned in May 2010 to look into the pair, over what Pike said was “perceived to be some very serious breaches of confidentiality over a significant period of time.” He added that it was a “perfectly legitimate exercise” but did not condone the subsequent surveillance of Lewis and Harris’s families.

Earlier in the day the Inquiry heard from Lawrence Abramson, formerly of solicitors Harbottle & Lewis, who were hired by NI to review around 2,500 internal emails following claims by Goodman that the then editor, Andy Coulson, knew about phone hacking at the paper and that others were involved.

Abramson revealed that around a dozen emails reviewed by the firm could have been “potentially embarrassing”, leading to “adverse publicity” and showing NI in “an unfavourable light”. He said the emails showed confidential sources, cash payments and an “active involvement” in Goodman’s prosecution, namely that NI “tried to influence how the defence was conducted”.

He added that he felt the emails “fell outside what I had been asked to consider because they did not suport Mr Goodman’s allegations.”

He also noted that, while working for NI, he had not seen emails from 2003 that may also have been significant. Abramson was asked if he has since seen them, and said his advice to the company would have been different had he known about the emails in 2007.

The Inquiry continues tomorrow with further evidence from Tom Crone, as well as the News of the World’s former editor, Colin Myler, and Jon Chapman, News International’s former legal affairs chief.

Follow Index on Censorship’s coverage of the Leveson Inquiry on Twitter – @IndexLeveson.

Thurlbeck denies being part of Mosley "strategy"

The former chief reporter of the News of the World has Denied any involvement with the paper’s strategy over publishing a story accusing ex-Formula 1 boss Max Mosley of engaging in a Nazi-themed orgy,

Neville Thurlbeck told the Leveson Inquiry he was not involved in any decison to put video footage of Mosley’s orgy on the News of the World website. He added that he was not instructed by the newsdesk to notify Mosley of the story, and therefore did not seek his comment.

“I am just person who is investigating [a story]”, Thurlbeck said.

Lord Justice Leveson seemed stunned at Thurlbeck’s lack of involvement. “Aren’t you being a bit unkind to yourself,” he asked, “you were the chief reporter.”

Thurlbeck responded that strategy decisions were made by the editor. “The chief reporter and the news editor…are all very grand-sounding titles but they don’t really call the shots at all.”

Thurlbeck said he imagined the editor would fear the story would be prevented from coming out if Mosley were notified prior to publication. “We all know Mr Mosley would have sought an injunction,” he told the Inquiry. in the event of an interim injunction, he said, the story would have been leaked and become the “currency and property of our rivals.”

Thurlbeck agreed with counsel to the Inquiry, Robert Jay QC, that there was no public interest in the piece without the suggestion of a Nazi theme, and it was this feature that “persuaded” him the story was in the public interest. He said the consenus at the paper was “we had a legitimate story we need to run.”

Thurlbeck received fierce questioning from Jay and Leveson. He was examined over emails to the women involved in the Mosley orgy about a follow-up story. They were offered anonymity, a sum of money and pixellation of their photographs, or the opposite if they did not agree to the paper’s terms. Thurlbeck took full responsibility for sending the emails, but told the Inquiry they were drafted by news editor Ian Edmonson.

“It was offering the girls a choice,” Thurlbeck claimed. Leveson pressed him, reminding him of Mr Justice Eady’s inference that the emails constituted blackmail, and asked if the girls’ right to privacy had been discussed at any point. Thurlbeck said it had not.

Mosley sued the paper for a breach of privacy in 2008. He was paid £60,000 in damages.

Thurlbeck also defended his splash on David Beckham’s affair with Rebecca Loos, noting that the footballer had cultivated and marketed an image of having a fairytale marriage. “We felt it important to expose it as a sham,” Thurlbeck said.

He repeatedly refuted evidence given to the Inquiry by former News of the World reporter Paul McMullan that painted an image of corruption at the redtop. Thurlbeck asserted that the paper’s staff were “exemplary” and that the culture at the paper was one of “thoroughness”. He added that McMullan’s view that circulation defined public interest was a “travesty”.

Thurlbeck added that a greater focus on privacy matters had rendered kiss and tell stories a “dead” genre.

The Inquiry continues tomorrow, with evidence from the News of the World’s former head of legal, Tom Crone; Farrer & Co lawyer Julian Pike; and Harbottle & Lewis’ Lawrence Abramson.

Follow Index on Censorship’s coverage of the Leveson Inquiry on Twitter – @IndexLeveson.

Public interest overriding factor, "Fake Sheikh" tells Leveson Inquiry

Undercover reporter Mazher Mahmood has told the Leveson Inquiry said public interest was the “overriding” factor for his 500-plus stories exposing criminality or wrongdoing.

“Exposing criminality gave me great satisfaction,” Mahmood said of his work. “I’m proud to have jailed paedophiles, arms dealers and drug dealers.”

In his 30-year career, 20 of which were spent as an undercover reporter at the now-defunct News of the World, Mahmood says he did at times cross the lines into illegality. He admitted once purchasing child pornography, but added that his actions led to the conviction of an offender and that the ends justified the means.

Mahmood claimed those holding public office should be open to scrutiny. “I don’t think I’d vote for my MP if i knew he was having an affair,” he said. When Lord Justice Leveson asked him if this view extended to celebrities, Mahmood said those “cashing in” on happy family life while engaged in extra marital affairs deserved to be exposed for their “hypocrisy”.

Mahmood repeated that there was a “hypocrisy justification” for exposing those who portray themselves publicly as “wholesome characters”, citing a story he wrote exposing two models working as prostitutes and selling drugs.

Mahmood repeatedly denied using methods of entrapment to expose crime, calling the “myth” about the use of such methods “annoying”. He said his subjects were already “predisposed to committing a crime”, and that he and his team provide the environment for the target to do so.

“I don’t want to go into our modus operandi,” he said, “but our methods have been tested time and time again in the courts.”

He added that he never commissioned private detectives to work for him.

Mahmood denied any knowledge of phone hacking at the News of the World, saying he was only made aware after the arrest of the paper’s Royal reporter Clive Goodman in 2006. “Rumours were about,” he said, “but there was no firm evidence.” He added that “all fingers were pointing to the newsdesk.”

Mahmood, known as the “Fake Sheikh” for the disguise he has worn when exposing criminals, said that his work has led to 261 criminal prosecutions.

Follow Index on Censorship’s coverage of the Leveson Inquiry on Twitter – @IndexLeveson.

PCC "should have done more", ex-Information Commissioner tells Inquiry

The former Information Commissioner told the Leveson Inquiry he was disappointed by the Press Complaints Commission’s lax response to allegations of illegal activities among the British press.

Richard Thomas said he wanted “loud, strident condemnation” from the regulator, having written to them in November 2003 after being advised by the ICO’s legal team that prosecuting journalists over the use of private investigators would be too costly. Yet he was told by PCC Chairman Sir Christopher Meyer that the regulator’s role was not to enforce the law. Thomas said he “just did not buy that line”, that the PCC could not intervene because the use of private investigators by the press was a criminal matter.

“I thought their response was less strident [than I expected],” Thomas said. “I think they could have and should have done more.”

He added that attempts to develop a “guidance note” with the PCC ground to a halt in April 2004.

Thomas reflected that, “with hindsight, I think I would’ve been more aggressive and assertive” with the PCC.

He noted his surprise and outrage at the PCC’s assertion that the ICO’s report on Motorman’s findings had “come out of the blue”, given that Thomas and PCC representatives had had two meetings about its contents.

Thomas described the data breaches exposed by Operation Motorman as “pernicious”, and felt deterrents would prevent further wrongdoing. In a “breakthrough” government consultation paper issued in July 2006, Thomas proposed two-year prison terms for those found guilty of trading in illegal data.

He admitted he was not expecting a “powerful campaign” of hostility from the tabloids. “It left me with the message that we were challenging something that went to the heart of tabloid activity,” he said. “As somebody said to me ‘you do realise you are challenging their business model’.”

Thomas reiterated his agenda “was not to send journalists to prison”, but to correct bad behaviour.

The Inquiry continues on Monday, with evidence from former News International staff.

Follow Index on Censorship’s coverage of the Leveson Inquiry on Twitter – @IndexLeveson.