Sunday, December 25, 2011

Arms Dealer/Hollywood Tycoon



Arnon Milchan
 is my fly open?
 
 (NYT)  “Confidential: The Life of Secret Agent Turned Hollywood Tycoon Arnon Milchan,” written by Meir Doron and Joseph Gelman, and set for publication on July 30 by Gefen Books, now holds that Mr. Milchan — whose credits include “Love and Other Drugs” and “Knight and Day” — at least through the mid-1980s was a full-fledged operative for Israel’s top-secret intelligence agency, Lakam. (The acronym is from the Hebrew for the blandly named Science Liaison Bureau.)

In that capacity, according to the book, Mr. Milchan supervised government-backed accounts and front companies that financed “the special needs of the entirety of Israel’s intelligence operations outside the country.”

The “special needs” serviced by Mr. Milchan, who is now 66 years old, included buying components to build and maintain Israel’s nuclear arsenal. But with the indictment in 1985 of Richard Kelly Smyth, an aerospace executive who had made illegal shipments of nuclear triggers through Milchan companies, Mr. Milchan unexpectedly found his arms-dealing in the news even as he was wrangling with Universal Pictures over the near collapse of a movie, “Brazil,” directed by Terry Gilliam.

Mr. Milchan’s disclaimer about profiteering provoked further research into how various companies set up by Mr. Milchan or associated with Milchan Brothers traded in arms for Israel and other countries. While doing so, he set aside money in accounts for use by Israel, allowing that country’s prime minister “to execute decisions beyond Israel’s borders without the need for the formal budgeting, cabinet approvals, petty internal politics, or leaks to the press that might endanger the operation.”

In the late 1990s, the News Corporation, which owns Fox, paid $200 million for a 20 percent stake in Mr. Milchan’s Regency Enterprises. A News Corporation spokeswoman, Teri Everett, had no immediate response to a query about the company’s reason for backing Mr. Milchan, and about any reaction by its chief executive, Rupert Murdoch, to revelations in the new book. (Mr. Milchan’s latest film for Fox, the comedy “Monte Carlo,” opened to soft reviews and modest prospects a few weeks ago.)

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