http://www.sanluisobispo.com/mld/sanluisob...ws/14980708.htm
Jackson lawyer targets lack of documentation for money claims
LINDA DEUTSCH
Associated Press
SANTA MONICA, Calif. - A former associate suing Michael Jackson testified Thursday that he never got a receipt for a $300,000 payment he claims he delivered to a "Mr. X" in South America on the pop star's behalf.
The issue of the mysterious payment, for which no details were given, was used by Jackson attorney Thomas Mundell as an example of big-ticket claims made by plaintiff F. Marc Schaffel that are not documented.
Schaffel, who worked with Jackson on various projects for three years, testified Wednesday that he got the $300,000 from one of his own accounts in Europe and was never fully repaid.
He testified Thursday that in the entire time he was with Jackson he loaned the pop star millions of dollars and never once got a receipt.
Outside court, Schaffel's lawyer, Howard King, disclosed that disputes over receipts, statutes of limitations and work agreements have led him to cut the claim against Jackson almost in half, eliminating costs that could not be documented or were too old to be claimed.
He said that the claim against Jackson is
now $1.6 million rather than the original $3.8 million."Mr. Schaffel is an idiot for not getting receipts," said King. "I don't think he is going to be making loans of millions of dollars to stars any more."
In court, Mundell showed jurors enlargements of ledgers that Schaffel submitted and pointed out discrepancies in accounting.
Regarding the split of a payment from a Japanese record company that gave $200,000 each to Schaffel and Jackson, Mundell said, "Show the jury a bank statement in which that $200,000 appears.""We don't have it here," said Schaffel.
"There is no such entry, is there?" said Mundell.
Schaffel said there was but it was not on any of the documents shown in court. He also said he tried to subpoena a witness to the transaction. And in later questioning he said Jackson told him to keep the money off the books.
Concerning the $300,000 Schaffel said he delivered in South America to someone listed on his ledger as "Mr. X," Mundell asked if he had any documentary proof regarding the money.
Schaffel said he did and handed a paper to the lawyer. But after a private conference with the judge it was not shown to the jurors.
King said outside court that the paper was a withdrawal slip from a bank in Brazil.
Neither Schaffel nor King would comment on where the money went. King, however, has said outside court that the actual payment was not made in Brazil but to someone in Argentina.
Schaffel also testified under Mundell's questioning that when he and Jackson
decided to work together the pop star gave him $2 million for use in the business and discussed making a charity record.
"He gave me the $2 million for the record and expenses and the situation I can't talk about," he said, referring to the $300,000.
Mundell asked if Jackson trusted him "to use that money appropriately" and Schaffel said yes.
The attorney pointed out that Jackson did not have checks for the account in which the money was deposited and never made a withdrawal, but that Schaffel did.
