Tale of the Tape

Regan's ties to Kerik, once one of Giuliani's most trusted associates, date back at least to 2001 when ReganBooks published Kerik's memoir, "Lost Son." She has acknowledged having an affair with the married and now-disgraced Kerik that began around the time of the November 2001 release of the book.

Apart from whatever else the alleged recording might reveal, Regan could conceivably have been privy to at least some financial information of interest to federal prosecutors in the Kerik case. Federal authorities obstensibly were investigating Kerik in connection with, among other things, money and loans he allegedly received from people eager to do business with New York City. Yet one tax-evasion count in his federal indictment concerned $75,000 in income from his ReganBooks memoir that he allegedly didn't report to the IRS.

The indictment, including the tax-evasion charge related to the publishing income, resulted from a federal grand-jury investigation of Kerik lead by the U.S. attorney in Manhattan. A spokeswoman for the prosecutor declined comment when asked if Regan had testified before the Kerik grand jury. The spokeswoman likewise demurred when asked whether, in light of Regan's allegation in her lawsuit, the prosecutor is currently seeking an audio recording or other evidence from Regan related to Kerik.

The relationship between News Corp. and Giuliani dates back to at least the mid-1990s. When he was mayor, Giuliani aggressively intervened as a Murdoch ally in a bitter business dispute between the mogul and Time Warner, the cable giant and archrival of News Corp. Time Warner was refusing to distribute Murdoch's upstart Fox News Channel in the all-important Manhattan market. The company, which owns CNN, eventually agreed to carry Fox News. Now, almost 10 years later, the News Corp. channel has toppled CNN as cable's No. 1 news outlet.

News Corp. officials wouldn't directly answer questions concerning the tape. Discussing the matter on background, another official credits Regan's lawsuit with reopening settlement discussions, saying "the complaint helped resurrect the conversations." When asked if a tape recording was a factor in putting the talks back on track, one official answered that News Corp. and Regan's representatives have discussed "discovery." The discovery process, a pretrial stage of a lawsuit, allows each side to legally require the other to hand over documents or other evidence deemed germane to the case. The response might suggest that News Corp. could be seeking to determine whether there is an audio recording among the evidence in Regan's possession.

Other well-placed News Corp. officials say the company is indeed aware of a tape, though these people were unsure whether any company representative had actually seen or heard it.