Indecent Exposure (67 page)
Joe Fischer checked Cytto's travel schedule and found that she was planning to be in Los Angeles during the second week of April for routine auditing work at the studio. It seemed to Fischer that the best approach to the Screen Gems matter would be for Cytto to "discover" the problem at that time. He summoned her and told her of Kirk Borchcrding's findings.
Il
ana Cytto knew that if she arrived at Screen Gems unannounced.
ana Cytto knew that if she arrived at Screen Gems unannounced.
Audrey Lisner would surmise immediately that she was under suspicion. Therefore, Cytto telephoned Lisner on Monday, April 10, to say that she would be at the studio later in the week and would be dropping by Screen Gems. Sounding very anxious, Lisner said it would be inconvenient for her to accommodate an audit that week. Cytto thereupon flew to Los Angeles that evening and drove to Screen Gems in Burbank the next morning. She first saw Richard Kerns, the head of the West Coast office, but did not reveal that she suspected Audrey Lisner of anything improper. Then Cytto confronted Lisner, who became even more upset than she had been on the telephone the day before. Lisner told Cytto that she had to leave shortly for Europe and it would be impossible to audit her books for the time being.
Il
ana Cytto returned to Dick Kerns's office. "Did you know Audrey is leaving the country?" Cytto asked. "No, I didn't know that."
ana Cytto returned to Dick Kerns's office. "Did you know Audrey is leaving the country?" Cytto asked. "No, I didn't know that."
"She says she's going to Belgium. Something about her dog
s. She says it's an emergency. I
must go ahead with this audit."
s. She says it's an emergency. I
must go ahead with this audit."
Kerns summoned Lisner and told her that Cytto would proc
eed with her work and that if Il
ana had any questions about the Screen Gems books, Audrey could answer them when she returned from her trip.
Lisner left immediately for home and Cytto prepared to begin her examination of the traveler's check accounts. From home, Lisner telephoned Joe Fischer in New York and asked that he order Cytto to delay the audit. Fischer called Dick Kerns and asked, "What the hell is going on out there?"
eed with her work and that if Il
ana had any questions about the Screen Gems books, Audrey could answer them when she returned from her trip.
Lisner left immediately for home and Cytto prepared to begin her examination of the traveler's check accounts. From home, Lisner telephoned Joe Fischer in New York and asked that he order Cytto to delay the audit. Fischer called Dick Kerns and asked, "What the hell is going on out there?"
"I
don't know," Kerns replied. "Il
ana wants to audit Audrey's books and Audrey doesn't want her to."
don't know," Kerns replied. "Il
ana wants to audit Audrey's books and Audrey doesn't want her to."
"It gets very suspicious if the accountant wants to leave when the auditor arrives," Fischer observed, instructing Kerns to let the audit proceed forthwith.
Well past midnight, Audrey Lisner telephoned two friends and implored them to come to her home immediately. When they arrived they found her nearly hysterical and incoherent. She claimed she had embezzled several thousand dollars from Screen Gems and was about to be found out. The amounts she had taken, she claimed, were small compared to what others had taken, and she was not going to be a scapegoat for them. She would "blow the whistle" on them, but she was afraid they might try to kill her. She was also thinking of killing herself.
The friends stayed with her and toward dawn she calmed down. One of the friends suggested that Audrey would arouse more suspicion by staying in town than by going ahead with her trip to Europe.
Within the next couple of days—by the time Lisner was sched
uled to leave—it was clear to Il
ana Cytto that there indeed were irregularities in the traveler's check accounts. She recommended to Dick Kerns that Lisner be detained. It was too late; her flight had left.
uled to leave—it was clear to Il
ana Cytto that there indeed were irregularities in the traveler's check accounts. She recommended to Dick Kerns that Lisner be detained. It was too late; her flight had left.
Suspecting that Lisne
r might try to destroy reco
rds, Cytto flipped through Lisne
r's Rolodex and found a listing for her travel agent. She phoned the agent and learned that Lisner was scheduled to return from Europe via San Francisco. The Bank of America depository where the Screen Gems traveler's checks were
stored was in San Francisco. Il
ana Cytto caught a PSA shuttle, went to the bank depository, and examined the traveler's
checks. As she had suspicioned,
all of the checks in question bo
re the signature of Audrey Lisne
r.
r might try to destroy reco
rds, Cytto flipped through Lisne
r's Rolodex and found a listing for her travel agent. She phoned the agent and learned that Lisner was scheduled to return from Europe via San Francisco. The Bank of America depository where the Screen Gems traveler's checks were
stored was in San Francisco. Il
ana Cytto caught a PSA shuttle, went to the bank depository, and examined the traveler's
checks. As she had suspicioned,
all of the checks in question bo
re the signature of Audrey Lisne
r.
Taking photocopies of all necessary documents, Cytto flew back to Los Angeles and sealed Lisner's office, having the locks changed and posting security guards. Then she reported by telephone to Joe Fischer.
Fischer felt as if he had been distraught—not too strong a word— for at least half of the two hundred or so long days and nights since Detective Joyce Silvey's telephone call in September. The rest of the time he had felt merely anxious. He had experienced the convulsion of a major corporation. He had seen and heard things that even to him—a tough, seasoned veteran of corporate show business— were shocking. He had witnessed behavior among adult men that had seemed inconceivable to him prior to its occurrence. Repeatedly, he had grown depressed, then allowed his hopes to rise ever so slightly, and then seen them obliterated by some fresh event more horrible than the last—another forgery, another ugly row in the boardroom, another magazine article.
And now Audrey Lisne
r.
r.
Although Alan Hirschfield had agreed to tighten certain money-control procedures at the studio after the
Begelman
embezzlements were discovered, he had defended the integrity of the control systems themselves, and he and Fischer had refused to fire or transfer those directly in charge of enforcin
g the controls. Jim Johnson and
Lou Phillips, as had been suggested by Audit Committee Chairman Irwin Kramer. With the new embezzlements, it would be difficult to protect Johnson and Phillips.
Begelman
embezzlements were discovered, he had defended the integrity of the control systems themselves, and he and Fischer had refused to fire or transfer those directly in charge of enforcin
g the controls. Jim Johnson and
Lou Phillips, as had been suggested by Audit Committee Chairman Irwin Kramer. With the new embezzlements, it would be difficult to protect Johnson and Phillips.
In a much broader sense, it seemed obvious to Fischer that Herbert, Irwin, Matty, and the rest of the boa
rd would seize upon Audrey Lisne
r as further "evidence" that Alan Hirschfield was inept and unfit. Not only did Hirschfield mishandle the Begelman affair, Fischer imagined the board saying, but after two months he still hasn't replaced Begelman, and now we find that he can't even keep employees from looting the company. Ultimately, Fisch
er knew, the Lisne
r episode would explode into a political issue between Alan and the board just as everything else had.
rd would seize upon Audrey Lisne
r as further "evidence" that Alan Hirschfield was inept and unfit. Not only did Hirschfield mishandle the Begelman affair, Fischer imagined the board saying, but after two months he still hasn't replaced Begelman, and now we find that he can't even keep employees from looting the company. Ultimately, Fisch
er knew, the Lisne
r episode would explode into a political issue between Alan and the board just as everything else had.
Immediately after Il
ana Cytto's call, Fischer summoned Dick Kerns to New York and demanded that Kerns disclose anything he might know about the embezzlements. Kerns denied knowing anything about them. Fischer said it had been rumored that Kerns and L
isner were having an affair. Kern
s was incredulous. "Give me a break, Joe," he said. "You've seen Audrey. You know what she's like and what she looks like. She's not the type I would go after."
ana Cytto's call, Fischer summoned Dick Kerns to New York and demanded that Kerns disclose anything he might know about the embezzlements. Kerns denied knowing anything about them. Fischer said it had been rumored that Kerns and L
isner were having an affair. Kern
s was incredulous. "Give me a break, Joe," he said. "You've seen Audrey. You know what she's like and what she looks like. She's not the type I would go after."
Audrey Lisner returned to Los Angeles the following Wednesday, April 19, and the ne
xt morning was called to Dick Ke
rns's office where she found
Ilana
Cytto with Kerns. Following instructions given by Joe
Fischer, Cytto and Kern
s told Lisner she had a right to have a lawyer present. She declined. Cytto then confronted her with the evidence against her and Lisner confessed to stealing the money. She promised to do everything she could to make restitution.
xt morning was called to Dick Ke
rns's office where she found
Ilana
Cytto with Kerns. Following instructions given by Joe
Fischer, Cytto and Kern
s told Lisner she had a right to have a lawyer present. She declined. Cytto then confronted her with the evidence against her and Lisner confessed to stealing the money. She promised to do everything she could to make restitution.
Joe Fischer flew to Los Angeles that evening, checked into L'Ermitage, and interrogated Lisner and Kems in h
is suite the next morning. Lisne
r again waived her right to an attorney and again confessed.
is suite the next morning. Lisne
r again waived her right to an attorney and again confessed.
"Audrey, we're going to have to do a thorough job of investigating all this," Fischer said. "We can't do anything to protect you. The best thing you can do is cooperate and tell the truth. We'll get this done as quickly and painlessly as possible, but I cannot promise you that Columbia won't prosecute."
Fischer flew back to New York and on Monday told Alan Hirschfield fo
r the first time about the Lisne
r embezzlements.
r the first time about the Lisne
r embezzlements.
"Is Kerns implicated?"
Hirschfield
asked.
"We don't think so."
Hirschfield
asked.
"We don't think so."
"The board will be thrilled," Hirschfield said. "They'll be able to blame me for this."
"No," Fischer replied, "the only person they should blame is me."
"It's not your fault."
"I was supposed to be watching the people who were supposed to be watching Audrey."
"Nonsense," said Hirschfield. "It's nobody's fault except Audrey's. But to the extent that anybody gets blamed, it'll be me. Kramer will have a field day. And Audrey won't have a chance. Everything they did to try to protect
Begelman
they'll do in reverse to her. We're going to see American justice at its best. You'll hear no talk of mercy, or second chances, or psychiatrists, or tragedy, or anything. They'll flatten her. We're going to see a real double standard go into action."
Begelman
they'll do in reverse to her. We're going to see American justice at its best. You'll hear no talk of mercy, or second chances, or psychiatrists, or tragedy, or anything. They'll flatten her. We're going to see a real double standard go into action."
FIFT
Y-TWO
Y-TWO
Alan
Hirschfield
stayed as far from the Lisner investigation as he could. He knew there was nothing he personally could do, and he knew that Joe Fischer would do everything possible to contain the problem while handling it with full propriety.
Hirschfield
stayed as far from the Lisner investigation as he could. He knew there was nothing he personally could do, and he knew that Joe Fischer would do everything possible to contain the problem while handling it with full propriety.
Moreover, Hirschfield felt compelled to give his full attention to the broader and more urgent problems that he sensed were beginning to encircle him. It had been too quiet. Except for a few brief conversations, and a perfunctory board meeting in early April, he had had no contact with Herbert Allen or Matty Rosenhaus for several weeks. All talk of a new contract for Hirschfield, and all talk of a mutually laudatory public statement of unity, had ceased. It seemed to
Hirschfield
that the war for control of the corporation had not abated but rather had moved into a new phase. Instead of constantly pressuring him, as they
had while Begelman was still in t
he company, the board members now, by withholding their support, were quietly rendering him unable to accomplish his most important task—replacing
Begelman
and reorganizing the studio. Columbia's main businesses—motion pictures and television—had been drifting without strong, day-to-day leadership since September. Having made his task impossible, the board would let an appropriate amount of time pass, declare him incompetent for failing to accomplish the task, and fire him. Or so Hirschfield suspected in the rare moments when the clouds of emotion and frustration lifted and he thought he saw the future clearly.
Hirschfield
that the war for control of the corporation had not abated but rather had moved into a new phase. Instead of constantly pressuring him, as they
had while Begelman was still in t
he company, the board members now, by withholding their support, were quietly rendering him unable to accomplish his most important task—replacing
Begelman
and reorganizing the studio. Columbia's main businesses—motion pictures and television—had been drifting without strong, day-to-day leadership since September. Having made his task impossible, the board would let an appropriate amount of time pass, declare him incompetent for failing to accomplish the task, and fire him. Or so Hirschfield suspected in the rare moments when the clouds of emotion and frustration lifted and he thought he saw the future clearly.
But even though he was depressed, even though his more dramatic efforts to seize control of the company—Jimmy Goldsmith and Philip Morris—had failed, and even though the odds remained with Herbert,
Hirschfield
was not finished. He had invested too much of himself in Columbia Pictures to quit now. By any legitimate standard, he felt, it was his company as much as anybody's. He had not run out of stamina and he had not run out of ideas.
Hirschfield
was not finished. He had invested too much of himself in Columbia Pictures to quit now. By any legitimate standard, he felt, it was his company as much as anybody's. He had not run out of stamina and he had not run out of ideas.
After weeks of looking elsewhere,
Hirschfield
decided that the only realistic choice for the presidency of the studio was its acting president, Dan
Melnick
. No one was enthusiastic about the idea. Hirschfield would have preferred someone with more experience and a more consistent record. And
Melnick
hated the kind of administrative work that was part of the president's job. He had even balked at becoming head of production until he was assured that his administrative duties would be negligible. But
Melnick
finally had made known to Hirschfield, over the course of a number of meetings in New York and Los Angeles, that he would take the job under certain conditions: He would have to be paid a great deal of money. And he would have to be free contractually to leave the president's job and become a producer, retaining substantial remuneration, if Hirschfield were to leave Columbia, or if other circumstances arose that were unacceptable to Melnick.
Hirschfield
decided that the only realistic choice for the presidency of the studio was its acting president, Dan
Melnick
. No one was enthusiastic about the idea. Hirschfield would have preferred someone with more experience and a more consistent record. And
Melnick
hated the kind of administrative work that was part of the president's job. He had even balked at becoming head of production until he was assured that his administrative duties would be negligible. But
Melnick
finally had made known to Hirschfield, over the course of a number of meetings in New York and Los Angeles, that he would take the job under certain conditions: He would have to be paid a great deal of money. And he would have to be free contractually to leave the president's job and become a producer, retaining substantial remuneration, if Hirschfield were to leave Columbia, or if other circumstances arose that were unacceptable to Melnick.
Hirschfield
accepted
Melnick
's terms, and then
Melnick
enhanced his attractiveness as a presidential candidate by locating a qualified person to succeed him as second-in-command at the studio in charge of motion-picture production. The new prospect was Frank Price, the president of the highly successful television arm of Universal and a ninete
en-year veteran of the MCA-Unive
rsal organization. Price had been recommended to Melnick by Sherry Lansing, a Columbia vice president and friend of both men. Frank Price, after many years in television, longed to get into movies. There were no immediate opportunities for him at Universal, so at Lansing's suggestion, Dan Melnick discussed the Columbia production post with Price. He was interested, and on April 26, he flew to New York and conferred with Alan Hirschfield. They liked each other immediately, and although no final agreement was reached, Hirschfield believed that the studio would be in good hands with Melnick and Frank Price at its helm.
accepted
Melnick
's terms, and then
Melnick
enhanced his attractiveness as a presidential candidate by locating a qualified person to succeed him as second-in-command at the studio in charge of motion-picture production. The new prospect was Frank Price, the president of the highly successful television arm of Universal and a ninete
en-year veteran of the MCA-Unive
rsal organization. Price had been recommended to Melnick by Sherry Lansing, a Columbia vice president and friend of both men. Frank Price, after many years in television, longed to get into movies. There were no immediate opportunities for him at Universal, so at Lansing's suggestion, Dan Melnick discussed the Columbia production post with Price. He was interested, and on April 26, he flew to New York and conferred with Alan Hirschfield. They liked each other immediately, and although no final agreement was reached, Hirschfield believed that the studio would be in good hands with Melnick and Frank Price at its helm.
Hirschfield continued to nurture the idea with the board of directors that Columbia should acquire or merge with another company. Even if a merger did not substantially diminish Herbert Allen's control, Hirschfield felt, at least it would introduce one or more new voices to the Columbia inner circle.
Hirschfield
hoped that the new voices would side with his. At least they might help to diffuse the tension. Herbert Allen, of course, was not naive about
Hirschfield
's motives. But Herbert was too pragmatic to ignore the possibility that a merger might make economic sense, whatever its other ramifications. At least he was willing to listen. By late April, Hirschfield was negotiating seriously with two companies—Filmways, the small entertainment and publishing conglomerate controlled by his friend Richard Bloch, and the Mattel toy company (Barbie dolls, Ringling Bros, circus). As it turned out, one of Herbert Allen's allies on the Columbia board of directors, Dan Lufkin, favored the talks with Mattel, having had a close relationship for a number of years with Mattel's chief executive, Arthur Spear.
Hirschfield
hoped that the new voices would side with his. At least they might help to diffuse the tension. Herbert Allen, of course, was not naive about
Hirschfield
's motives. But Herbert was too pragmatic to ignore the possibility that a merger might make economic sense, whatever its other ramifications. At least he was willing to listen. By late April, Hirschfield was negotiating seriously with two companies—Filmways, the small entertainment and publishing conglomerate controlled by his friend Richard Bloch, and the Mattel toy company (Barbie dolls, Ringling Bros, circus). As it turned out, one of Herbert Allen's allies on the Columbia board of directors, Dan Lufkin, favored the talks with Mattel, having had a close relationship for a number of years with Mattel's chief executive, Arthur Spear.
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