Right-Wing Book Publishing Ponzi Scheme Coming Apart
Published November 6, 2007
Yum.
Five authors have sued the parent company of Regnery Publishing, a Washington imprint of conservative books, charging that the company deprives its writers of royalties by selling their books at a steep discount to book clubs and other organizations owned by the same parent company.
In a suit filed in United States District Court in Washington yesterday, the authors Jerome R. Corsi, Bill Gertz, Lt. Col. Robert (Buzz) Patterson, Joel Mowbray and Richard Miniter state that Eagle Publishing, which owns Regnery, “orchestrates and participates in a fraudulent, deceptively concealed and self-dealing scheme to divert book sales away from retail outlets and to wholly owned subsidiary organizations within the Eagle conglomerate.”
…
In Regnery’s case, according to the lawsuit, the publisher sells books to sister companies, including the Conservative Book Club, which then sells the books to members at discounted prices, “at, below or only marginally above its own cost of publication.” In the lawsuit the authors say they receive “little or no royalty” on these sales because their contracts specify that the publisher pays only 10 percent of the amount received by the publisher, minus costs — as opposed to 15 percent of the cover price — for the book.
Two things of note:
1) Liberal writers have consistently made the NY Times bestselling list without the benefit of a similar scheme on the left, for example: Al Franken, Paul Krugman, Eric Alterman, Joe Conason, etc.
2) Redstate.com is owned by Regnery’s Eagle division.
http://www.oliverwillis.com/2007/11/06/right-wing-book-publishing-ponzi-scheme-coming-apart/