Masry Tells of Alleged Threats in Extortion Trial

Westlake Village attorney Ed Masry told jurors he thought it was extortion from the start.

Erin Brockovich’s ex-husband and her ex-boyfriend were threatening to spread rumors to the tabloids that Masry and Brockovich had an affair, and that she had neglected her children, he said. If Masry wanted to prevent the publicity, he would have to pay Shawn Brown, Jorg Halaby and their attorney $310,000.

“I believed those two would do interviews,” Masry testified Wednesday in a Ventura courtroom. “I believed the two of them would do anything for money.”

The two men and their Century City attorney, John Reiner, were arrested last April. Prosecutors dropped charges against Halaby and Brown but have refused to give a reason. Reiner is on trial on charges of felony attempted extortion and conspiracy to commit a crime.

Masry, now a Thousand Oaks city councilman, testified for four hours, recounting events from April 11 through 26, just weeks after the film “Erin Brockovich” was released. The Oscar-nominated movie was based on the story of Brockovich, a persistent investigator at Masry’s law firm who helped win a $333-million lawsuit against Pacific Gas & Electric, accused of poisoning a small town’s water supply.

Prosecutors contend Reiner received $73,500--his share of the alleged extortion money--in exchange for not revealing the disparaging information about the high-profile pair. But defense attorneys maintain the deal was legitimate and Reiner had simply received a legal fee from a settlement he negotiated for his clients over issues related to the movie.

After Reiner’s call to Masry allegedly demanding payment for his clients, Masry and Brockovich consulted Thousand Oaks attorney Cathleen Drury, who reported it to local prosecutors.

“We were not going to pay any money to anybody, and we were going to fight this,” Masry testified. He has denied any sexual relationship with Brockovich.

The district attorney’s office recorded telephone conversations between Masry and Reiner. The tapes were played in court Wednesday. In one call, Masry is heard trying to talk Reiner down from the original demand of $200,000, saying he didn’t think interviews by Brown and Halaby would be too valuable.

“It wasn’t like Mother Teresa was going to give a press statement,” Masry said in court.

But on the tape, Masry said he was willing to pay in order to shield his wife from the accusations. “I think for the grief it could cause, particularly with my wife, I’d rather pay the money and move on with my life,” Masry said.

The direct examination of Masry ended Wednesday with the showing of the videotaped meeting at Drury’s office that ended in the arrests. On the videotape, Masry is seen handing a check for $30,000 to Halaby and one for $280,000 to Brown. The checks, which were admitted into evidence, were also made out to Reiner.

Brown was then shown giving a $100,000 check to Masry, saying it would pay child support for the two children Brown had with Brockovich.

Brown, Halaby and Reiner then signed documents--also presented into evidence--stating they would “unequivocally deny that Mr. Masry and Ms. Brockovich have ever engaged in any illegal, illicit, immoral sexual conduct” and that “Ms. Brockovich is, or ever was a ‘bad mother.’ ”

Authorities, who had been waiting in an adjacent room, then stormed into the office, yelling: “Hands on the table! You’re under arrest for extortion!”

On cross-examination, defense attorney Michael Nasatir asked Masry how he negotiated contracts and settlements, implying the legitimacy of the procedures used in his dealings with Reiner.

Nasatir also questioned Masry about the contract he has with Universal Studios. Masry, Brockovich and Halaby are all portrayed in the film and were paid by Universal for the rights to their stories. Their agreements also forbade them from making derogatory statements about the movie, according to testimony in the case.

Brown does not have an agreement with Universal and was upset by the way he was represented in the film, defense attorneys said earlier.