BY The Associated Press
CINCINNATI -- Federal investigators are trying to determine how to handle voice mail recordings sent anonymously to the Securities and Exchange Commission (SEC) in April that were allegedly stolen from the Chiquita banana company, The Cincinnati Post reported Saturday.
The voice mail was apparently the same as that used by The Cincinnati Enquirer in its May stories that raised questions about Chiquita's business practices. The Enquirer later renounced the stories and agreed to pay Chiquita Brands International Inc. more than $10 million, saying it believed lead reporter Mike Gallagher had tapped into the company's voice mail message system and deceived his editors about it. The Enquirer fired Mr. Gallagher.
The New York Times reported Friday that the SEC was investigating allegations in the Enquirer's stories.
The Post, citing SEC sources it did not identify, said Saturday that a debate has started within the federal agency over how the voice mails should be used if they were stolen. The SEC is concerned that the information may have been obtained in violation of the 1968 Wiretap Act, which prohibits the unauthorized interception of telephone messages, the Post said.
The SEC has repeatedly declined to tell the Associated Press whether it has the tapes or what it is doing with them.
Chiquita officials have said they are cooperating in the investigation. Robert Olson, general counsel of Chiquita, declined to comment Friday. Steven G. Warshaw, Chiquita's president and chief operating officer, was away from his office and could not be reached to comment.
The Enquirer's management has repeatedly declined to discuss the accuracy of its stories on Chiquita.
The Enquirer reported in May that copies of the voice-mail tapes had been provided to the SEC and the agency was investigating Chiquita. There was no mention then about it being done anonymously or the SEC having any legal dilemma in using the tapes.
Chiquita on July 2 filed a defamation lawsuit accusing Mr. Gallagher of illegally and repeatedly tapping into the company's voice mail system and listening to messages of Chiquita executives. Mr. Gallagher allegedly eavesdropped to learn what the executives discussed as they prepared responses to questions he had posed to them, Chiquita's lawsuit alleges.
Mr. Gallagher, 40, did not return calls to his Milford home. Mr. Gallagher's lawyer also did not return a call.
The Wall Street Journal reported Friday that in October 1997, more than six months before the Enquirer published its Chiquita stories, Mr. Gallagher told Enquirer Editor Lawrence K. Beaupre that Mr. Gallagher had tapped into Chiquita's voice-mail system in order to verify authenticity of voice-mail messages he was receiving from a Chiquita source.
Mr. Beaupre reprimanded Mr. Gallagher, telling him not to use that method of verification again, the Journal reported, quoting unidentified sources.
Mr. Beaupre declined to comment about the report, as did Harry M. Whipple, the Enquirer's president and publisher. Mr. Whipple said he would not comment because of an ongoing investigation by a state special prosecutor looking into whether property was stolen from Chiquita.
The Enquirer's settlement spared the Gannett Co.-owned newspaper from a lawsuit Chiquita had prepared against the Enquirer, Mr. Olson said. Mr. Gallagher was not a party to the settlement.
Previous stories
Chiquita, paper get more notice July 18, 1998
Ex-reporter faced questions before July 11, 1998
Judge got contributions from Chiquita execs, special prosecutor July 10, 1998
Ex-reporter tries to avoid testifying to grand jury July 9, 1998
Chiquita sues former Enquirer reporter July 3, 1998
Reporter fights subpoena July 1, 1998
Enquirer employees subpoenaed in probe June 30, 1998
Chiquita accepts apology, $10M from Enquirer June 29, 1998
An apology to Chiquita June 28, 1998
