"Payola" Case Finally Over
Ten years after an NBC news report broke the '80s record
payola scandal, and seven years after charges were filed against the L.A.
independent record promoter Joe Isgro, a federal judge has dismissed the case,
according to Reuters. On Monday, U.S. District Judge Consuelo Marshall
ruled that federal prosecutors had violated the speedy-trial act in their
handling of the case. Isgro was indicted in 1989 in Los Angeles on charges of
payola and 56 other felony counts, including racketeering and conspiracy to
distribute cocaine. He consistently denied the allegations. Isgro was one of
the most successful record promoters of the early '80s, earning millions of
dollars. Isgro told the L. A. Times "this case should have never been
started in the first place.
Isgro was part of a loose group of indie
record promoters who billed record companies over $60 million a year during the
early '80s to get records played on the radio. Prosecutors said "payola"
tactics included making payoffs to radio programmers. The allegations triggered
grand jury investigations in New Jersey, Los Angeles and New York.
In 1990,
U.S. District Judge James Ideman dismissed charges against Isgro after learning
that lead prosecutor William Lynch concealed critical information about the
testimony of a key government witness, casting doubt on the credibility of that
witness and the merits of the case. The case was reinstated in 1993 when an
appeals court ruled that Ideman exceed his authority by throwing out the
case.