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Thursday, May 19, 2005

Spitzer Moves to the Groove

by: Theresa Sim

Fund executives can breathe a sigh of relief, for now at least. It appears that New York Attorney General Eliot Spitzer has moved beyond funds, beyond insurance companies, and now is waiting for a star to fall. The AG, who can be called a celebrity himself, has sent subpoenas to at least a dozen executives in the glamorous music business. Donnie Ienner, president and chief executive officer of SonyBMG, and several others at the company have received the not-so-friendly notes from the AG, reports the New York Post.

Spitzer has already served subpoenas to several top music companies, including Warner Music, EMI and radio conglomerates Cox Radio, Clear Channel, Infinity and Entercom Communications.

The AG is investigating how the companies compensate radio stations for playing certain songs, which could possibly violate what are called "payola" laws.  

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