Gossip: Billionaire 'Set Me Up'

Stern, 36, is a dapper nightclub-hopper who started his first gossip column at the Bennington College student paper and says he loves the "visceral feeling" of being able to "ride the subway to work and everyone's looking at what you wrote." Burkle, 53, is a press-shy mogul, Democratic Party fundraiser and potential bidder for a dozen McClatchy newspapers who tries to avoid the limelight even as he hangs out with celebrities.

"On reflection, it was an error in judgment to continue the business discussion about the clothing company" while also talking about "the coverage that he was getting in the paper," said Stern, who was captured on tape comparing the arrangement he was proposing to the "Mafia." "I did absolutely nothing remotely illegal and never intended any kind of extortion."

Stern's lawyer, Joseph Tacopina, said he will press the Post to reinstate Stern. "It's one thing if he said, 'Give me money or else I'm going to make sure bad stories are printed about you,' " Tacopina said. "He didn't." While insisting that Stern broke no law, Tacopina said of the conversations: "It may be a fine line. To the common person, it doesn't sound right."

Stern said that when he met Burkle for the first time last June, the billionaire complained that Page Six kept "beating me up" by running inaccurate items about him. Stern recalls telling him, "If you want to improve relations, give us some stuff. You know a lot of people, you have famous friends you hang out with."

Stern said he also tried to interest Burkle in investing in his clothing line. Burkle's assistant, Kevin Marchetti, later ordered 60 shirts at a cost of $5,700, but returned some of them because, Marchetti wrote, "Ron just wants all black."

In December, Burkle complained about the inaccurate coverage in a letter to Post owner Rupert Murdoch, and Allan, the top editor, wrote back to say that reporters would check with Burkle on any future item. Two days later, the Post reported -- without calling -- that Burkle had flown a group of celebrities to Aspen, Colo., which never happened.

Burkle was annoyed last month when the Post reported that "party-boy billionaire Ron Burkle . . . is looking to spend 'up to $50 million' for a larger Manhattan apartment, where he can entertain more lavishly."

On March 14, Stern e-mailed Marchetti to say that Burkle "has the means" to do something about his negative Post coverage. Three days later Stern wrote, in reference to a picture of Burkle with supermodel Gisele Bundchen: "I was able to argue it off Page 6 . . . this kind of thing can be prevented altogether in time . . . the photographers invent stories to sell the photos of course."

Stern said yesterday he had "exaggerated" his role and that the photo ran elsewhere in the paper. Having realized that Burkle would not invest in his clothing company, Stern said, "I was trying to show him he was in need of advice and strategy. I was saying I can help you."

On March 27, five days after their first secretly taped meeting, Stern wrote that "things are heating up and time is of the essence. . . . Before putting myself on the line, I need a firm commitment." He suggested "a check or wire" to "get the ball rolling."