AEG CEO Accuses Michael Jackson's Mom Of Extortion

Michael Jackson's octogenarian mom is engaging in “extortion” with her wrongful death case against concert promoter AEG Live, the company’s CEO told jurors Tuesday.

Randy Phillips took the stand for the first time in the megabucks trial unfolding in Los Angeles and made it clear he believes Katherine Jackson is after money she doesn’t deserve.

“You think this case is a baseless extortion, a shakedown of AEG Live?” asked Katherine Jackson’s lawyer, Brian Panish.

“Yes or no answer? Yes,” Phillips replied.

Phillips said he “wished” Panish wouldn’t use such a derogatory description of the famous matriarch but again answered “yes” when asked if he considered her lawsuit an "extortion."

The civil suit seeks millions, possibly billions, in damages over the “Thriller” singer’s June 2009 overdose death.

Katherine Jackson claims AEG negligently hired Dr. Conrad Murray, the doctor who overdosed her son, and should be held liable.

Murray is now serving four years for involuntary manslaughter.

AEG has denied any wrongdoing, arguing that Jackson personally selected Murray and agreed to refund any money advanced to him through AEG.

Ultimately, neither AEG nor Michael signed Murray's contract, and the Las Vegas cardiologist never received a dime.

Panish grilled Phillips over a June 2008 email he sent to an outside business contact, asking multiple times about a line stating that Jackson “needs to be controlled as much as possible.” Phillips said he was referring to Michael’s out-of-control spending and gave an exasperated laugh when Panish quoted the line again.

"Do you think any of this is funny, Sir?" Panish asked.

"No, I think it's tragic," Phillips responded.

Earlier Tuesday, Panish questioned Paul Gongaware, also a high-level AEG executive, about the company's relationship with Murray.

Panish repeatedly invoked "Incredible Hulk" actor Lou Ferrigno, suggesting to jurors that AEG hired Ferrigno as Jackson's personal trainer in 2009 and paid his bill without a signed contract.

Gongaware confirmed he "made the deal" with Ferrigno but wasn't sure whether the muscle man ever received payment.

"You stiffed Lou Ferrigno? You didn't pay the Incredible Hulk?" Panish asked with mock horror as jurors laughed.

Outside court, Panish said he had evidence AEG eventually paid Ferrigno.

Given a chance to re-question Gongaware, AEG lawyer Marvin Putnam produced a contract for Ferrigno that was signed by yet another AEG exec.

It wasn't immediately clear if the contract was executed before or after Jackson's death. Putnam promised to check on the signature date.

Ferrigno's hiring could prove important because Katherine Jackson must convince jurors AEG had a binding, good-faith agreement with Murray before she can prove negligence.

Gongaware was adamant his company never hired Murray.

"He was working for Michael Jackson," Gongaware testified Tuesday.

"Like Lou Ferrigno, right?" Panish asked.

"He was under Michael's direction, yes," Gongaware said.





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