Business
Column: Chuck Philips (1952-2024) singlehandedly made music industry journalism better
Few people outside the music industry may know the name Chuck Philips, but few inside the industry will forget it.
As the leading music industry investigative reporter of his generation and a mainstay of Times entertainment coverage for more than a decade, Chuck aimed to force a celebrity-driven corner of journalism into taking seriously how the pursuit of money by industry bigwigs often left the artists themselves at the side of the road.
He may not have entirely succeeded — the coverage of celebrity lives is still a fundamental feature of music writing — but he set a standard that has seldom been matched. Chuck died last month at 71.
“There are two ways to look at investigative reporting in the world of pop music journalism,” says Robert Hilburn, who as The Times’ pop music critic and pop music editor began publishing Chuck’s freelanced stories in the 1980s. “There’s pre-Chuck Philips and post-Chuck Philips. Before Chuck, the coverage, nationally, was mostly timid and sporadic. Chuck turned it into something relentless and uncompromising.”
That’s a global perspective. Here’s a personal perspective, drawn from my working with Chuck on investigations of the music industry in 1998 that won us the Pulitzer Prize: Chuck was the most tenacious, scrupulous and principled journalist I’ve ever known.
There are two ways to look at investigative reporting in the world of pop music journalism. There’s pre-Chuck Philips and post-Chuck Philips.
— Former Times pop music editor Robert Hilburn
I had an elite Ivy League journalism degree and he held a baccalaureate in journalism from Cal State Long Beach and, before joining The Times, had been running a silk-screening business.
After we were paired on our project I stood in awe of his skill at interviewing reluctant subjects, identifying the crux of a tough story, and pursuing it wherever it led, while his rigorous sense of probity and commitment to fairness earned him the trust and respect even of industry executives who knew they were about to be skewered. I learned more from our partnership than I did with anyone else I’ve worked with over a long career.
Hilburn relates that in the early 1980s, he saw the need for a reporter to supplement the reviews and features that made up the bulk of pop coverage with reporting on the business side of the industry.
“There was no place in the budget to hire a reporter,” Hilburn told me, “so I put out the word that I was looking for a free-lance, but the field was so barren that only one person responded.”
It was Chuck Philips, who had “scant experience as a reporter — just a few stories for local music publications. Yet he had an intelligence and desire in our first meeting that stood out. Unable to hire him, I took money allocated for reviews and features to pay him by the story.”
He started with a couple of stories covering a censorship case in Florida that confronted the rap group 2 Live Crew with possible criminal and obscenity charges involving its debut album. “But Chuck didn’t just stop there, he did more than a dozen follow-up stories as new developments arose,” Hilburn said.
Few stories illustrated the compassion and empathy for recording artists that infused Chuck’s work like his coverage of the Milli Vanilli scandal in 1990. Largely forgotten now, the duo of Rob Pilatus and Fabrice Morvan had burst onto the music scene with a 1988 album titled “Girl You Know It’s True.”
The single by that name soared to No. 1 on the Billboard charts. The dreadlocked break dancers, whom Chuck later described as “a sharp-dressing dance duo on the Munich club and fashion-show circuit,” became a worldwide sensation, winning the award for best new artist at the 1989 Grammys.
The truth was that they hadn’t sung a note on the album or on stage, but lip-synced on stage and on videos to tracks laid down by freelance vocalists. They were outed at a news conference by Frank Farian, their own Germany-based producer, who evidently was trying to undercut their insistence on singing on a forthcoming release by destroying their credibility.
“Rob” and “Fab” were showered with vilification and ridicule in the music press. Not in Chuck’s stories, however. He saw clearly that they were the victims in a scam perpetrated by Farian and abetted by what his reporting indicated was the willful blindness, if not the knowing consent, of their American label, Clive Davis’ Arista Records.
A few days after the story broke, the performers granted their first joint interview to Chuck, who showed how they had been ruthlessly manipulated by industry figures who unaccountably escaped with their fortunes and reputations intact. Underlying the fiasco, he wrote, was “the record industry’s myth-making machine built with a recording technology capable of deceit and operated by men who chose to deceive.”
In 1995, The Times finally hired him for its full-time business staff. For Chuck, covering the music industry was not about quick hits or superficial celebrity-driven stories to be turned around in a day or two, but a determined effort to gain the trust of potential sources and infuse them with a sense of responsibility for the integrity of the business.
“Chuck Philips changed my life,” recalls Terri McIntyre, who was executive director of the Los Angeles chapter of the Grammy organization when Chuck and I began investigating the organization, the National Academy of Recording Arts and Sciences, and its CEO, C. Michael Greene. “We became trusted friends as I shared ‘off-the-record’ the horrors of my experience at NARAS and the names of many other individuals he should seek out” for further information, recalls McIntyre, who recently filed a lawsuit alleging she was raped by Greene. (Greene denies her allegations.)
“Chuck’s dedication played a meaningful and significant role in my transition from victim-to-survivor,” McIntyre says. “He doggedly fought for the truth.”
For Chuck, every story involved a long-term investment. He was unfailingly sincere and rigorously honest in his treatment of colleagues and record industry workers, from secretaries to executives. Chuck was one of the most gracious colleagues I ever encountered. As long as we worked together he never forgot my birthday, leaving me CDs with mixes of new music that are still in my collection.
Chuck often took on issues that would not be taken up by the broader press for months, even years. In 1991, working with the late Laurie Becklund, he broke the story of sexual misconduct at three leading record companies and a prominent Los Angeles law firm, unearthing legal settlements and government complaints by secretaries and other women in their offices, divulging damning details and identifying the accused perpetrators by name — a quarter-century before reporting on sexual harassment in the entertainment industry launched the #MeToo movement.
Investigative reporters at other media outlets scurried to follow The Times’ reporting. “Chuck Philips was responsible for bringing sexual harassment in the music industry to a national forum,” Richard D. Barnet and Larry L. Burris observed in a 2001 book on music industry controversies.
In 1994, he reported on accusations about Ticketmaster’s strong-arm tactics to preserve its near-monopoly over ticket sales at major concert venues, focusing in part on a complaint by the Seattle band Pearl Jam that Ticketmaster had pressured concert promoters into canceling dates for a national tour on which the band had tried to cap ticket prices.
In 1999, the late Mark Saylor, then the editor of entertainment coverage in The Times’ business section, was inspired to pair me and Chuck together for an investigation of the music industry. Chuck had unique access to the upper echelons of the industry and I could read a financial report.
But Chuck was the guiding spirit of the project, which began with stories exposing financial irregularities at NARAS, which sponsors the Grammys, under the all-powerful Greene — among them its spending less than 10% of the millions of dollars donated to a Grammy charity on its stated purpose of providing assistance to indigent and ailing musicians. We also reported on settlements of numerous complaints of sexual harassment by female workers at NARAS during Greene’s reign.
Greene kept his job until 2002, when the NARAS board finally ousted him after further sexual harassment cases, many of them relentlessly reported by Philips, came to light.
It must be said that Chuck was ill-served by The Times’ former management, which yielded a bitter breakup that may have contributed to his wish, communicated by his family, that no formal obituary appear, including in The Times.
The inflection point came with his indefatigable reporting on the 1996 murder of Tupac Shakur. The product was a front-page article on March 17, 2008, that traced personal animosity between Tupac and the rap artist known as Biggie Smalls, or Notorious B.I.G., to a 1994 ambush at a New York recording studio at which Tupac had been robbed and pistol-whipped. The fallout from that incident, he reported, contributed to both rappers’ killings.
Chuck later recounted that he had tried to track down everyone who witnessed the 1994 assault, visiting witnesses in “prisons across the nation” and in violent neighborhoods in L.A. and New York. His story reported that information “supported Shakur’s claims that associates of music executive Sean “Diddy” Combs orchestrated” the assault; its principal target was the rap music mogul James “Jimmy Henchman” Rosemond, an associate of Combs. It was accompanied by purported FBI reports, known as 302s, of interviews with informants; the documents appeared to support Shakur’s claims, though the 2008 article didn’t hinge on those documents.
Chuck had been tipped to the documents by an associate of Henchman’s, who told him that he had filed the 302s in a lawsuit he had brought in federal court in Florida and that they made a reference to the 1994 assault.
The documents were “privileged” — meaning that because they had been filed in an earlier court case, they could be reported on without legal liability. As it happened, however, they were also fabricated. When the article ran, Chuck did not know he had been steered toward faked documents, though he realized it soon afterward. In the aftermath, he suffered the consequences.
The Times retracted the story and removed it from its website.
Chuck disagreed with the retraction, arguing that the documents had been at best peripheral to his reporting and that the article held water without them — indeed, that he had striven to minimize references to the documents in his original draft but had been overruled by editors.
In any event, his targets exploited the retraction in a concentrated campaign to undermine his credibility. Henchman, as it happens, was sentenced in 2018 to life in prison plus 30 years for ordering the murder of a rap music rival.
A few months after the retraction, Chuck was swept out of The Times in a layoff wave, ending a career as one of the most distinguished staff members in the newspaper’s history.
Chuck spent years defending himself, including via a lengthy first-person accounting in New York’s Village Voice in 2012. The retraction permanently overshadowed his career; he never again was able to secure a full-time reporting job. Now his voice is permanently stilled, but his impact on the way we try to cover entertainment lives on.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
Business
Monterey Park takes landmark vote on banning data centers
Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.
If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.
Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.
As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.
Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.
“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”
The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.
The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.
While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.
The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.
In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.
The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.
“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”
The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”
While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.
“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”
The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.
As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.
Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.
Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”
While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.
“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”
Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.
Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.
“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”
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