8 months after the Lowly Newshound lifted the lid on Michael Jackson's wheelings and dealings, lots has happened but little has changed.
Whilst the Newshound's sources were largely correct, it would seem that certain information proved incorrect, namely that Jackson was moving back into Neverland.
That said, in the world of Michael Jackson, nothing is ever concrete. The star is a law unto himself and it is more than plausible that he intended to move back home then changed his mind on a whim.
The Lowly Newshound did, however, accurately detail one enormous shift in Jackson's team; the firing of his manager Raymone Bain, who was terminated following the near foreclosure of Neverland Ranch.
Shortly after journalist Roger Friedman suggested that Bain's dealings on Jackson's behalf had seen her hiding large sums of money from the star, sources say Jackson became convinced that Bain was stealing from him and terminated her employment.
Jackson spent the next few months with neither a manager nor a spokesperson, raising questions about the legitimacy of his claims to be working on new music. However, in recent months two representatives have spoken on Jackson's behalf, indicating that he may be thinking about going back to work.
The first was a mysterious 'Dr Tohme', who released a statement on Jackson's behalf denying brother Jermaine's claims that he would join the Jacksons on a reunion tour. Tohme did state, however, that Jackson was 'busy working on projects that he looked forward to sharing with his fans in concert soon'.
Jackson's recent refusal to speak about a new album (favouring, instead, the non-specific term 'projects') has raised further questions among his fanbase as to whether the new album he promised in 2007 even exists - and his comments about concerts have been met by even more intense skepticism.
More recently, Celina Aponte of the Outside Organisation issued a statement on Jackson's behalf following his settlement of the civil case brought against him by the Prince of Bahrain.
Incidentally, the Lowly Newshound brought you the lowdown on that case - or at least the Prince's side of the story - back in April of this year when the Prince filed papers in London and New York.
In a shameless display of bias, the mainstream media jumped all over Jackson's decision to settle the case and commentators began speculating that he had done so in order to avoid a 'humiliating public appearance'. In actuality, Jackson looked set to win the case.
The Prince of Bahrain claimed to have signed Jackson legitimately to his own label, 2 Seas Records, for which he said he had paid Jackson a $7million cash advance. However, testimony on Friday 21st November proved devastating for the Prince's case.
In the morning, the Prince's own employee took the stand and was forced to admit that 2 Seas Records - the company the Prince had signed Jackson up to - did not technically exist.
In the afternoon, Jackson's former manager Guy Holmes added insult to injury by revealing that Jackson only signed a draft paper, never a finalized contract.
In short, the Prince had used a void contract to sign Jackson to a non-existent company.
It was also revealed during the week's testimony that most of the purported $7million advance was given to Jackson in the form of gifts long before he ever signed anything - some of it before the pair had even met.
In court, the Prince produced a list of items and cash sums for which he said he wished to be compensated - a list so petty as to seek reimbursement for, among other things, a tub of Ben and Jerry's ice cream.
The media failed to report any of this information and instead portrayed Jackson's decision to settle as a sign of guilt and weakness.
It has since emerged that Jackson was ready to board an airplane to London when he was told of the settlement, which indicates that the settlement was most likely initiated by the Prince, not Jackson, when he saw his case crumbling before his eyes.
The terms of the settlement remain unknown but in addition to whatever Jackson agreed to pay the Prince, he also settled two outstanding debts this month. Both were small, but undoubtedly a step in the right direction. Sources tell the Lowly Newshound that if Jackson continues to pay off his loans at a steady rate, he will be debt free by the end of 2010.
He could be debt free far quicker, though, if rumours of a tour prove true. The online media was recently awash with reports that Jackson was planning a tour - 30 dates in 30 cities. However, this claim was originally attributed to Jackson by an unnamed fan, not an authoritative source, and thus is entirely unfounded.
What is true, however, is that AEG did offer Jackson a 30 night residency at London's O2 arena at approximately this time last year. Jackson became involved in serious negotiations but never signed the contracts. Rumours surrounding this offer have begun circulating again in recent weeks but nothing is confirmed.
Good news for Jackson comes in the form of a new estimate on the Sony/ATV catalogue - often referred to as the 'Beatles Catalogue'. The catalogue, in which Jackson owns a 50% stake, was recently valued at $30billion. As such, Jackson appears to be sitting on a $15billion fortune, somewhat dwarfing his alleged $300million debts.
Mahalo!
The Lowly Newshound
December 06, 2008
April 05, 2008
Neverland Ahoy? Jackson re-shuffles team, moves back home and halts work on new album?
Michael Jackson is turning his back on his new team in favour of old friends, it seems.
Sources tell the Newshound that Frank Dileo is becoming an ever more prominent fixture in Michael Jackson's new team. Dileo managed Jackson throughout his 'Thriller' and 'Bad' years and is widely credited with Jackson's phenomenal success during these periods.
Sacked on Valentines Day 1989 with little explanation, Dileo believes he was elbowed by Sony, who felt he had too much influence over the star.
Dileo's return to Jackson's team began during the star's 2005 child molestation trial. Since then the star has been in frequent phone contact with Dileo. Jackson first approached Dileo after the trial with the intention of producing a film in which Jackson would star as a man who would transform by night into a magic car, and a young boy would drive him around solving mysteries. That the film didn't come off was probably the most fortunate outcome for all involved.
The pair's reconciliation hit a rough patch about a year ago when Jackson's manager, Raymone Bain, instructed the star's staff to start screening the his calls. Fox columnist Roger Friedman was first to break the story that Bain was cutting Jackson off from friends and family, but was widely criticised by Jackson's fans, who labelled his story an outrageous fantasy. However, insiders soon began leaking information that Dileo's calls were not reaching Jackson.
Eventually, miffed by the lack of contact from Dileo, Jackson telephoned him from a hotel suite in London and the two had a lengthy conversation. However, moments after Jackson hung up, he flew into an apparent rage, telephoned Dileo back and told him he'd not sounded grateful enough to receive his call.
Since then bridges have been built and whilst Dileo is not officially on Jackson's payroll, nor is it clear whether the two have met face to face since the trial, phone calls between the two are becoming increasingly frequent.
It was during one of these recent conversations that Jackson confided in Dileo that he had terminated his manager, Raymone Bain. Roger Friedman wrote a column recently in which he detailed some dodgy dealings between Bain and various businessmen. Whilst Bain claimed to be saving Jackson's Neverland Ranch from foreclosure, her methods sounded unusual - placing large amounts of money in escrow without Jackson's knowledge or consent.
Jackson is now under the impression that Bain and a second party known only as Adene attempted to scam him out of $4million dollars.
Further evidence that Jackson's latest motto is 'out with the new, in with the old' comes in the shape of his former make-up artist Karen Faye. Faye was unceremoniously ditched after Jackson's 2005 trial when he jetted off to the Middle East.
However, some insiders say Jackson was better off rid of her. Using the nickname 'Turkle', Faye had a tendency to visit fansites, whilst still under Jackson's employ, and post messages about the size of her boss's crotch.
Jackson, according to the Newshound's sources, recently bought Faye an iPhone and a large plasma television to apologise for cutting her off. Sources say Jackson is planning to move back into Neverland and has provided Faye with his new phone number and invited her to visit him at the ranch.
In a 2003 interview with Ed Bradley Jackson described the mess police officers had made of his ranch and proclaimed that Neverland would forevermore be just a house, never a home. As such, the Newshound presumes that his sudden decision to move back in is little more than a money-saving exercise.
Since leaving the Middle East Jackson has splurged millions of dollars on rented accommodation and hotel rooms, all the while failing to pay off his mounting debts. After almost losing his ranch last month Jackson may be moving back home to save money on rented accommodation and channel it instead into paying off his loans.
Whilst Jackson has publicly stated that he never intends to live at Neverland again, losing the ranch would be a terrible blow to his already shredded public image. It is the last remaining symbol of his stature and his success.
Meanwhile this week producer Will.I.Am has caused upset for Jackson fans by telling Velvet Revolver guitarist Slash that Jackson has no plans to record or release any music in the near future. His statement directly contradicts months of bragging by Ne-Yo, Akon, Kanye West and various other generic hip-hop stars who all claim to be working on Jackson's new album.
The comment comes in the same week that a member of monotonous hip-hop producer Timbaland's crew claimed to be working on new material with Jackson, so it is unclear whether Will.I.Am's comments were misconstrued by Slash or whether these urban hipsters are merely fabricating their involvement in the project as a self-promotional exercise.
Will.I.Am is on record as saying he's worked with Jackson on brand new material, so if the Black Eyed Peas producer is correct in his assertion that Jackson is no longer working on any new material, the Lowly Newshound wonders just what scared him off.
One possibility is Prince Abdullah of Bahrain. While staying in the Middle East after his 2005 trial Jackson signed a contract with Prince Abdullah to release two albums under the Prince's record label, 2Seas Records, as well as agreeing to write a book and produce a broadway style show.
It is unclear whether Jackson was aware of what he was agreeing to as he has since conceded in depositions that he was addicted to painkillers at the time. Either way, he absconded with the $7million cash advance and never completed any work.
Prince Abdullah has filed civil suits against Jackson in New York and London and it is quite possible that any new material Jackson does decide to release will become the property of the Prince's record label by default.
Either way, Jackson desperately needs to work soon because despite the success of his recent cash cow release 'Thriller 25' he remains on the brink of financial collapse.
That is not to say Jackson isn't earning. On the contrary, the star earns in excess of $10million every month through royalties from his own music and his stake in the Sony/ATV catalogue, otherwise known as the 'Beatles Catalogue'.
Jackson's problem is that after years of terrible financial advice he has been left with debts of approximately $300million. The money was originally borrowed from the Bank of America and plunged into a succession of ill-advised business ventures with string of foreign businessmen. The loan was subsequently transferred to Fortress Investments and more recently to HSBC.
Jackson's debts do not stop there, though. Whilst struggling to pay off his debts to the Bank of America he remortgaged his Neverland Ranch and also his family's home in Encino, known as 'Hayvenhurst'. In addition to this, Jackson's bad business history has left him facing dozens of lawsuits, the majority of which he either loses or settles, meaning he owes tens of millions of dollars to various disgruntled lawyers, accountants, promoters, producers and assorted business owners.
As such, whilst Jackson earns between $100-150million a year, the majority of his monthly earnings is channeled into an account known as the 'New Haven Trust', which is used to pay off his debts. With the cash being spread so thinly between the various companies and individuals to whom he owes money, Jackson's repayments often barely cover the interest.
With future musical releases looking questionable and almost certain to result in yet more legal feuding between Jackson and Prince Abdullah, live performance seems to be Jackson's only way to boost his bank balance.
Promoters AEG have offered Jackson $1million a night to perform at London's O2 arena but the star is hesitant to perform. He has lost confidence in his abilities and his 2005 trial has left him paranoid. He is obsessed with bettering his past achievements and sees little point in taking to the stage if he cannot equal the phenomenal performances he pulled off in his earlier career.
Indeed, last November a Sony source told the Lowly Newshound that Jackson was in discussions to perform at the Grammy Awards in February. The plan was for Jackson to perform a medley of Beat It, Billie Jean and Thriller, accompanied by a full orchestra and an 8 member dance troupe. Fox Columnist Roger Friedman announced days before the event that Jackson was holed up in a rehearsal studio but the next day reported that Jackson had skipped town.
In pulling out Jackson let down the Grammy organizers, who were so angry that they called off an all-star tribute to Jackson - despite having already advertised it on national television - and later leaked a rumour that they had turned him away because of his diva demands.
He also burnt bridges with Sony; Jackson was due to be interviewed at the Grammy Awards for an edition of the 'Thrillercasts' - a series of podcasts being released to promote 'Thriller 25'. By skipping the ceremony, Jackson cost Sony an entire episode of the podcast series and in doing so failed to complete the only promotional exercise he'd agreed to undertake. This will surely leave Sony wondering whether it is worth their effort to invest any time or money in whatever new material Jackson does eventually muster.
Relations between the star and the label first deteriorated in 2002 after Jackson refused to promote his last album, 'Invincible', because the he felt the corporation was not lending him its full support.
In actuality, the label had pumped millions of dollars into the album's debut video, 'You Rock My World', and not recouped that money through sales of the single.
So naturally, when Jackson asked for an even larger budget to produce his next video, 'Unbreakable', the label refused to put up the money. Jackson threw his toys out of the pram and refused to appear in any more music videos, as well as refusing to tour.
Jackson made up with the label in 2003 when he agreed to embark on a short European tour to promote a greatest hits compilation, entitled 'Number Ones'. However, allegations of child molestation hit before the plans could be announced and Jackson seems to have undermined that good will gesture by failing to promote 'Thriller 25', his first major release since his acquittal.
It is difficult to see what Jackson's next step will be, or even what options are available to him. One thing's for sure, though. Jackson needs to get his skates on.
Mahalo!
The Lowly Newshound
Sources tell the Newshound that Frank Dileo is becoming an ever more prominent fixture in Michael Jackson's new team. Dileo managed Jackson throughout his 'Thriller' and 'Bad' years and is widely credited with Jackson's phenomenal success during these periods.
Sacked on Valentines Day 1989 with little explanation, Dileo believes he was elbowed by Sony, who felt he had too much influence over the star.
Dileo's return to Jackson's team began during the star's 2005 child molestation trial. Since then the star has been in frequent phone contact with Dileo. Jackson first approached Dileo after the trial with the intention of producing a film in which Jackson would star as a man who would transform by night into a magic car, and a young boy would drive him around solving mysteries. That the film didn't come off was probably the most fortunate outcome for all involved.
The pair's reconciliation hit a rough patch about a year ago when Jackson's manager, Raymone Bain, instructed the star's staff to start screening the his calls. Fox columnist Roger Friedman was first to break the story that Bain was cutting Jackson off from friends and family, but was widely criticised by Jackson's fans, who labelled his story an outrageous fantasy. However, insiders soon began leaking information that Dileo's calls were not reaching Jackson.
Eventually, miffed by the lack of contact from Dileo, Jackson telephoned him from a hotel suite in London and the two had a lengthy conversation. However, moments after Jackson hung up, he flew into an apparent rage, telephoned Dileo back and told him he'd not sounded grateful enough to receive his call.
Since then bridges have been built and whilst Dileo is not officially on Jackson's payroll, nor is it clear whether the two have met face to face since the trial, phone calls between the two are becoming increasingly frequent.
It was during one of these recent conversations that Jackson confided in Dileo that he had terminated his manager, Raymone Bain. Roger Friedman wrote a column recently in which he detailed some dodgy dealings between Bain and various businessmen. Whilst Bain claimed to be saving Jackson's Neverland Ranch from foreclosure, her methods sounded unusual - placing large amounts of money in escrow without Jackson's knowledge or consent.
Jackson is now under the impression that Bain and a second party known only as Adene attempted to scam him out of $4million dollars.
Further evidence that Jackson's latest motto is 'out with the new, in with the old' comes in the shape of his former make-up artist Karen Faye. Faye was unceremoniously ditched after Jackson's 2005 trial when he jetted off to the Middle East.
However, some insiders say Jackson was better off rid of her. Using the nickname 'Turkle', Faye had a tendency to visit fansites, whilst still under Jackson's employ, and post messages about the size of her boss's crotch.
Jackson, according to the Newshound's sources, recently bought Faye an iPhone and a large plasma television to apologise for cutting her off. Sources say Jackson is planning to move back into Neverland and has provided Faye with his new phone number and invited her to visit him at the ranch.
In a 2003 interview with Ed Bradley Jackson described the mess police officers had made of his ranch and proclaimed that Neverland would forevermore be just a house, never a home. As such, the Newshound presumes that his sudden decision to move back in is little more than a money-saving exercise.
Since leaving the Middle East Jackson has splurged millions of dollars on rented accommodation and hotel rooms, all the while failing to pay off his mounting debts. After almost losing his ranch last month Jackson may be moving back home to save money on rented accommodation and channel it instead into paying off his loans.
Whilst Jackson has publicly stated that he never intends to live at Neverland again, losing the ranch would be a terrible blow to his already shredded public image. It is the last remaining symbol of his stature and his success.
Meanwhile this week producer Will.I.Am has caused upset for Jackson fans by telling Velvet Revolver guitarist Slash that Jackson has no plans to record or release any music in the near future. His statement directly contradicts months of bragging by Ne-Yo, Akon, Kanye West and various other generic hip-hop stars who all claim to be working on Jackson's new album.
The comment comes in the same week that a member of monotonous hip-hop producer Timbaland's crew claimed to be working on new material with Jackson, so it is unclear whether Will.I.Am's comments were misconstrued by Slash or whether these urban hipsters are merely fabricating their involvement in the project as a self-promotional exercise.
Will.I.Am is on record as saying he's worked with Jackson on brand new material, so if the Black Eyed Peas producer is correct in his assertion that Jackson is no longer working on any new material, the Lowly Newshound wonders just what scared him off.
One possibility is Prince Abdullah of Bahrain. While staying in the Middle East after his 2005 trial Jackson signed a contract with Prince Abdullah to release two albums under the Prince's record label, 2Seas Records, as well as agreeing to write a book and produce a broadway style show.
It is unclear whether Jackson was aware of what he was agreeing to as he has since conceded in depositions that he was addicted to painkillers at the time. Either way, he absconded with the $7million cash advance and never completed any work.
Prince Abdullah has filed civil suits against Jackson in New York and London and it is quite possible that any new material Jackson does decide to release will become the property of the Prince's record label by default.
Either way, Jackson desperately needs to work soon because despite the success of his recent cash cow release 'Thriller 25' he remains on the brink of financial collapse.
That is not to say Jackson isn't earning. On the contrary, the star earns in excess of $10million every month through royalties from his own music and his stake in the Sony/ATV catalogue, otherwise known as the 'Beatles Catalogue'.
Jackson's problem is that after years of terrible financial advice he has been left with debts of approximately $300million. The money was originally borrowed from the Bank of America and plunged into a succession of ill-advised business ventures with string of foreign businessmen. The loan was subsequently transferred to Fortress Investments and more recently to HSBC.
Jackson's debts do not stop there, though. Whilst struggling to pay off his debts to the Bank of America he remortgaged his Neverland Ranch and also his family's home in Encino, known as 'Hayvenhurst'. In addition to this, Jackson's bad business history has left him facing dozens of lawsuits, the majority of which he either loses or settles, meaning he owes tens of millions of dollars to various disgruntled lawyers, accountants, promoters, producers and assorted business owners.
As such, whilst Jackson earns between $100-150million a year, the majority of his monthly earnings is channeled into an account known as the 'New Haven Trust', which is used to pay off his debts. With the cash being spread so thinly between the various companies and individuals to whom he owes money, Jackson's repayments often barely cover the interest.
With future musical releases looking questionable and almost certain to result in yet more legal feuding between Jackson and Prince Abdullah, live performance seems to be Jackson's only way to boost his bank balance.
Promoters AEG have offered Jackson $1million a night to perform at London's O2 arena but the star is hesitant to perform. He has lost confidence in his abilities and his 2005 trial has left him paranoid. He is obsessed with bettering his past achievements and sees little point in taking to the stage if he cannot equal the phenomenal performances he pulled off in his earlier career.
Indeed, last November a Sony source told the Lowly Newshound that Jackson was in discussions to perform at the Grammy Awards in February. The plan was for Jackson to perform a medley of Beat It, Billie Jean and Thriller, accompanied by a full orchestra and an 8 member dance troupe. Fox Columnist Roger Friedman announced days before the event that Jackson was holed up in a rehearsal studio but the next day reported that Jackson had skipped town.
In pulling out Jackson let down the Grammy organizers, who were so angry that they called off an all-star tribute to Jackson - despite having already advertised it on national television - and later leaked a rumour that they had turned him away because of his diva demands.
He also burnt bridges with Sony; Jackson was due to be interviewed at the Grammy Awards for an edition of the 'Thrillercasts' - a series of podcasts being released to promote 'Thriller 25'. By skipping the ceremony, Jackson cost Sony an entire episode of the podcast series and in doing so failed to complete the only promotional exercise he'd agreed to undertake. This will surely leave Sony wondering whether it is worth their effort to invest any time or money in whatever new material Jackson does eventually muster.
Relations between the star and the label first deteriorated in 2002 after Jackson refused to promote his last album, 'Invincible', because the he felt the corporation was not lending him its full support.
In actuality, the label had pumped millions of dollars into the album's debut video, 'You Rock My World', and not recouped that money through sales of the single.
So naturally, when Jackson asked for an even larger budget to produce his next video, 'Unbreakable', the label refused to put up the money. Jackson threw his toys out of the pram and refused to appear in any more music videos, as well as refusing to tour.
Jackson made up with the label in 2003 when he agreed to embark on a short European tour to promote a greatest hits compilation, entitled 'Number Ones'. However, allegations of child molestation hit before the plans could be announced and Jackson seems to have undermined that good will gesture by failing to promote 'Thriller 25', his first major release since his acquittal.
It is difficult to see what Jackson's next step will be, or even what options are available to him. One thing's for sure, though. Jackson needs to get his skates on.
Mahalo!
The Lowly Newshound
March 21, 2008
Debbie's 'close friend' behind Jackson home movie leaks
Debbie Rowe's 'close friend' Marc Schaffel has spoken out on her behalf today, claiming that Rowe 'wants what's best for her two young children'. Schaffel has been acting as a semi-official spokesperson for Rowe ever since Jackson died on June 25th.
Schaffel, aficionados will remember, is an ex-gay porn director who wormed his way into the King of Pop's life by disguising his past and telling the star he had worked in film. Jackson, who had long sought to break into the film industry, brought Schaffel onboard to produce a music video - and Schaffel burrowed himself in like a tic.
In the ensuing years Schaffel became like a right hand man to Jackson and helped to produce two rebuttal documentaries for the star in the aftermath of the Martin Bashir fiasco. However, Jackson was eventually alerted by his advisors to Schaffel's pornographic past and swiftly fired him, realising the implications that consorting with an ex-gay porn director could have for his already bruised image.
Schaffel subsequently sued Jackson for unpaid loans and the case was eventually settled out of court.
Schaffel and Rowe are believed to have met when she recorded an interview for Jackson's rebuttal documentary 'The Footage You Were Never Meant To See', which included damning evidence of Martin Bashir's lies and manipulation during the filming of 'Living With Michael Jackson'.
It is unclear, though, whether Debbie Rowe realises that her 'close friend' Schaffel has been selling home videos of Jackson and his children to various American networks for six figure sums, all the while releasing statements on behalf of the children's mother, who is rumoured to be embroiled in a custody battle.
It is thought that the home videos came into Schaffel's possession when he was putting together a documentary titled 'Michael Jackson's Private Home Movies', which was aired in 2003 and included footage of Jackson interacting with his children. However, Jackson insisted that their faces were blurred in the broadcasted show.
But footage of Jackson at home with his children - in which their faces are distinctly unblurred - has been leaking steadily to an assortment of US television networks. Sources tell me that this footage is being pedaled by Schaffel, who could have made more than half a million dollars so far from selling out Jackson's private family moments.
If Rowe is indeed aware of Schaffel's actions then her insistence that she wants the best for her children must be taken with a pinch of salt. If she doesn't know, then Schaffel obviously isn't the 'very close friend' she thought he was.
Schaffel, aficionados will remember, is an ex-gay porn director who wormed his way into the King of Pop's life by disguising his past and telling the star he had worked in film. Jackson, who had long sought to break into the film industry, brought Schaffel onboard to produce a music video - and Schaffel burrowed himself in like a tic.
In the ensuing years Schaffel became like a right hand man to Jackson and helped to produce two rebuttal documentaries for the star in the aftermath of the Martin Bashir fiasco. However, Jackson was eventually alerted by his advisors to Schaffel's pornographic past and swiftly fired him, realising the implications that consorting with an ex-gay porn director could have for his already bruised image.
Schaffel subsequently sued Jackson for unpaid loans and the case was eventually settled out of court.
Schaffel and Rowe are believed to have met when she recorded an interview for Jackson's rebuttal documentary 'The Footage You Were Never Meant To See', which included damning evidence of Martin Bashir's lies and manipulation during the filming of 'Living With Michael Jackson'.
It is unclear, though, whether Debbie Rowe realises that her 'close friend' Schaffel has been selling home videos of Jackson and his children to various American networks for six figure sums, all the while releasing statements on behalf of the children's mother, who is rumoured to be embroiled in a custody battle.
It is thought that the home videos came into Schaffel's possession when he was putting together a documentary titled 'Michael Jackson's Private Home Movies', which was aired in 2003 and included footage of Jackson interacting with his children. However, Jackson insisted that their faces were blurred in the broadcasted show.
But footage of Jackson at home with his children - in which their faces are distinctly unblurred - has been leaking steadily to an assortment of US television networks. Sources tell me that this footage is being pedaled by Schaffel, who could have made more than half a million dollars so far from selling out Jackson's private family moments.
If Rowe is indeed aware of Schaffel's actions then her insistence that she wants the best for her children must be taken with a pinch of salt. If she doesn't know, then Schaffel obviously isn't the 'very close friend' she thought he was.
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