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- <text id=89TT1915>
- <title>
- July 24, 1989: The Queen Stands Trial
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1989
- July 24, 1989 Fateful Voyage:The Exxon Valdez
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- PEOPLE, Page 66
- The Queen Stands Trial
- </hdr><body>
- <p>Greed and corned beef at the Helmsleys' palace
- </p>
- <p>By Priscilla Painton
- </p>
- <p> Her trial is barely under way, but the verdict from
- curbside and cartoonists is already in. "You rich people, you
- ought to go to jail. You're guilty," a stranger told her,
- leaning into her face as she lunched on tuna salad in the
- courthouse cafeteria. The day she met her jury, she was
- caricatured in New York's Daily News in full royal garb --
- striding through a jail.
- </p>
- <p> The object of this vengeful anticipation is Leona Helmsley,
- 69, a Brooklyn-bred hatter's daughter who undertook to transform
- her face into a symbol of privilege and pampering. After her
- billionaire husband Harry Helmsley, 80, proclaimed her
- president of his Helmsley Hotels in 1980, she staged her own
- coronation in a multimillion-dollar ad campaign for the Helmsley
- Palace, offering fantasies of fealty to those who could afford
- $215 double rooms. "The only palace in the world where the Queen
- stands guard," trumpet the ads that still appear in glossy
- magazines.
- </p>
- <p> Now Leona is trying to persuade a jury to ignore the
- princess-and-the-pea image she paid so much to acquire. She is
- accused, along with two former executives in the $5 billion
- Helmsley real estate empire, of having evaded federal taxes by
- diverting money from business properties to fund $4 million
- worth of personal fripperies, including a $130,000
- indoor-outdoor stereo system. Most of these allegedly fraudulent
- charges were for items intended for the couple's own $11 million
- palace in Greenwich, Conn., where, in a bucolic tableau worthy
- of Marie Antoinette, Leona once gamboled with four sheep. Her
- husband is not at her side: a judge ruled last month that he was
- mentally incompetent to stand trial. Leona has been indicted
- separately for extorting money and such small-ticket items as
- liquor and television sets from suppliers who wanted to do
- business with her hotels. The most devastating testimony yet in
- what is expected to be a two-month trial came from the former
- housekeeper of her 28-room Connecticut estate, who testified
- that Leona told her in 1983, "We don't pay taxes. The little
- people pay taxes."
- </p>
- <p> To the retributive delight of many New Yorkers, Leona finds
- herself impaled on the cusp of the self-indulgent '80s and the
- sobersided '90s. "We're going from Nancy Reagan's real pearls
- to Barbara Bush's fake pearls, and Leona's unapologetic
- enjoyment of her wealth doesn't amuse us anymore," says Jane
- Maas, an advertising agent who, like many of Leona's employees,
- was mothered at first and fired a short time later. But Leona's
- social indictment is not just the result of bad timing. "She
- has continuously and repeatedly abused people," says Michael
- Moss, the author of Palace Coup, a recent book on the Helmsleys.
- Says society chronicler Dominick Dunne: "Not even the nouveaux
- riches gyp their help."
- </p>
- <p> Leona's petty tyranny over her employees is legendary, in
- large part because she has wanted it to be. During a segment of
- CBS's 60 Minutes, she badgered and scolded ten employees, in
- some cases just for standing idly at their posts. But Leona's
- unofficial tantrums are what have escalated her reputation from
- exacting boss to coldhearted and greedy Marie Antoinette. "She
- made me fire a whole department -- eight people -- right before
- Christmas in 1985," Joseph Licari, a financial adviser and one
- of Leona's co-defendants, once said. "She felt they were
- stealing from her... She gets this obsession that people are
- ripping her off."
- </p>
- <p> Moss recounts that she disliked a corned-beef sandwich she
- ordered late one night at the Palace Hotel, so she refused to
- pay the meat supplier's $8,500 bill. Donald Trump, himself a
- favorite New York City villain, described her as a "disgrace to
- humanity" in a letter that was mysteriously leaked to the
- newspapers. Even her lawyer called her a "tough bitch" when
- attempting to convince the jury that her personality was not on
- trial.
- </p>
- <p> After Leona refused to pay about $353,191 worth of bills
- from contractors renovating her Connecticut home, they chose not
- to walk away. Some of them complained to the press and then to
- the grand jury, where they gave heated testimony on the methods
- used to cover the bills she did pay. Now her lawyer, Gerald
- Feffer, finds himself explaining to a jury that money, after
- all, is relative. "Let's face it," said Feffer in his opening
- argument, "a million dollars to the Helmsleys is not the same
- as a million dollars to you and me." That may not sound very
- convincing to a group that includes an electrician and a baggage
- handler.
- </p>
-
- </body></article>
- </text>
-
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