James Murdoch Could Face Criminal Charges In Phone Hacking Scandal

As if things couldn't get any worse for the Murdoch empire, new reports are emerging that James Murdoch--the head of News Corp's international holdings, and, until recently, the seeming heir apparent to father Rupert Murdoch--could face criminal charges in both the U.S. and the U.K.

Murdoch has admitted that he authorized out-of-court settlements to victims of phone hacking during his time as head of News International, the British division of News Corp--and that the company misled Parliament repeatedly. Murdoch said that he did these things without "full possession of the facts."

The Guardian reports that this admission--and reported payments to British police officers--may render Murdoch criminally liable under both British and American legislation:

The payments could leave News Corp - and possibly James Murdoch himself - facing the possibility of prosecution in the US under the Foreign Corrupt Practices Act (FCPA) - legislation designed to stamp out bad corporate behaviour that carries severe penalties for anyone found guilty of breaching it - and in the UK under the Regulation of Investigatory Powers Act 2000 which outlaws the interception of communications.

Section 79 of the so-called RIPA act covers "the criminal liability of directors." Speaking to the BBC, Alan Johnson, the former British Home Secretary who was responsible for the UK's criminal justice system, said he thinks Murdoch could be prosecuted under the act.

Since News Corp. is technically an American company, Murdoch could also be prosecuted under the FCPA, since the legislation, in the Justice Department's words, "was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business."

FCPA expert Mike Koehler told the Guardian he would be "very surprised" if U.S. authorities did not get involved.