Robert Maxwell

Robert Maxwell
Member of Parliament for Buckingham
In office 15 October 1964 – 18 June 1970
Preceded by	Frank Markham
Succeeded by	William Benyon
Born	10 June 1923(1923-06-10) Slatinské Doly, Czechoslovakia
Died	5 November 1991(1991-11-05) (aged 68) Sea around Canary Islands
Birth name	Ján Ludvík Hoch
Nationality	British
Spouse(s)	Elisabeth Meynard Maxwell (m. 1946–1991)
Children	Nine including Ghislaine Maxwell, Kevin Maxwell, Ian Maxwell
Occupation	Publisher, media proprietor
Religion	Jewish
Military service
Rank	Captain
Awards	Military Cross

Ian Robert Maxwell MC (10 June 1923 – 5 November 1991) was a Czechoslovakian-born British media proprietor and former Member of Parliament (MP), who rose from poverty to build an extensive publishing empire built upon fraud.

Contents 1 Early life 2 Member of Parliament 3 Business activities 4 Controversy 5 Death 6 Fraud revelations 7 See also 8 References 9 Further reading 10 External links

Early life

Robert Maxwell was born Ján Ludvík Hoch in the small town of Slatinské Doly (now Solotvino), Carpathian Ruthenia, the easternmost province of pre-World War II Czechoslovakia (now Solotvino, Ukraine) into a poor^[1][2] Yiddish-speaking Jewish family. His parents were Mechel Hoch, and Hannah Slomowitz. He had 6 siblings. In 1939, the area was reclaimed by Hungary. Most members of his family were gassed in Auschwitz after Hungary was occupied in 1944 by its former ally, Nazi Germany but he had already escaped, arriving in Britain in 1940 as a 17-year-old refugee^[1].

Maxwell joined the British Army Pioneer Corps in 1941 and transferred to the North Staffordshire Regiment in 1943. He was involved in action across Europe from Normandy beaches to Berlin, ranked sergeant^[1]. He gained a commission in 1945 and promoted to captain. In January 1945 he received the Military Cross. It was during this time that British Intelligence changed his name several times, finally settling on Ian Robert Maxwell

In 1945, he married Elisabeth "Betty" Meynard, a French Protestant with whom he had nine children with the goal of "recreating the family he lost in the Holocaust".^[3] Five of his children were employed within his companies. Two met with tragedy, three-year old daughter Karine died of leukemia; and eldest son (at the time 15) Michael was severely injured after being driven home from a post-Christmas party in 1961 when his driver fell asleep at the wheel. Michael did not regain consciousness until seven years later.^[4][5][6][7]

After the war, Maxwell first worked as a newspaper censor for the British military command in Berlin in Allied-occupied Germany. Later, he used various contacts in the Allied occupation authorities to go into business, becoming the British and United States distributor for Springer Verlag, a publisher of scientific books. In 1951 he bought three quarters^[8] of Butterworth-Springer, a minor publisher; the other one quarter was held by the experienced scientific editor Paul Rosbaud. They changed the name of the company to Pergamon Press and rapidly built it into a major publishing house.

Member of Parliament

In 1964 he was elected to the House of Commons for the Labour Party, and was MP for Buckingham. In 1970 he lost to the Conservative William Benyon.

Business activities

In 1970 Maxwell established the Maxwell Foundation in Liechtenstein. In 1974 he reacquired PPL. In 1981 Maxwell acquired the British Printing Corporation (BPC) and changed its name to the British Printing and Communication Corporation (BPCC) and then to Maxwell Communications Corporation. The company was later sold off to a management buy-out, and is now known as Polestar. In July 1984 Maxwell acquired Mirror Group Newspapers from Reed International plc. MGN were publishers of the Daily Mirror, a pro-Labour Party newspaper. He also bought the American interests of the Macmillan publishing house. The Mirror was the first National newspaper to be printed in color.

By the 1980s Maxwell's various companies owned the Daily Mirror, the Sunday Mirror, the Scottish Daily Record and Sunday Mail and several other newspapers, Pergamon Press, Nimbus Records, Collier books, Maxwell Directories, Prentice Hall Information Services, Macmillan (US) publishing, and the Berlitz language schools. He also owned a half-share of MTV in Europe and other European television interests, Maxwell Cable TV and Maxwell Entertainment. In 1987 Maxwell purchased part of IPC Media to create Fleetway Publications.

In June 1985, Maxwell announced a takeover of Sir Clive Sinclair's ailing home computer company, Sinclair Research, through Hollis Brothers, a Pergamon Press subsidiary.^[9] However the deal was aborted in August 1985.^[10]

Maxwell pioneered the dissemination of highly specialized scientific information, responding to the exponential growth of investment in academic research, and this is Maxwell's most important legacy. Maxwell founded over 600 specialized scientific and educational journals, which are an indispensable reference and research tool for the dissemination of scientific and educational thought throughout the world.

By 1988 some 37 years after Maxwell acquired Pergamon Press, Maxwell's publishing empire had grown to having over 3500 books in print, including 7000 out-of-print titles, and was publishing some 400 scientific journals per year.

Maxwell's unbroken links with Eastern European totalitarian regimes resulted in a number of biographies (normally considered to be hagiographies) of those countries' then leaders, with interviews conducted by Maxwell, for which, he received much derision in the UK.

Maxwell was also well known as the chairman of Oxford United Football Club, saving them from bankruptcy and leading them into the top flight of English football, winning the League Cup in 1986. Maxwell bought into Derby County F.C. in 1987. He also attempted to buy Manchester United in 1984, but refused owner Martin Edwards asking price.

Controversy

In 1969 Saul Steinberg head of "Leasco Data Processing Corporation", was interested in a strategic acquisition of Pergamon. Steinberg claimed that during negotiations Maxwell had falsely stated that a subsidiary responsible for publishing encyclopedias was extremely profitable.^[11]This led to an inquiry by the Department of Trade and Industry (DTI) under the Takeover Code of the time; at the same time the U.S. Congress was investigating Leasco's takeover practices. The DTI inquiry reported: "We regret having to conclude that, notwithstanding Mr Maxwell's acknowledged abilities and energy, he is not in our opinion a person who can be relied on to exercise proper stewardship of a publicly quoted company." It was found that Maxwell had contrived to maximise Pergamon's share price through transactions between his private family companies.^[11] This caused Maxwell to lose control of Pergamon in the United Kingdom—but not in the United States, where Steinberg purchased Pergamon. Justice Forbes in September 1971 was critical of the inquiry, 'They had moved from an inquisitorial role to accusatory one and virtually committed the business murder of Mr. Maxwell." He further continued that the trial judge would probably find that the "inspectors had acted contrary to the rules of national justice." ^[12] The company performed poorly under Steinberg; Maxwell resumed control of Pergamon, returned it to profitability, and eventually sold the company.

Maxwell was known to be litigious against those who would speak or write against him. The satirical magazine Private Eye lampooned him as a "Cap'n Bob" and the "bouncing Czech." Maxwell took out several libel actions against Private Eye, one resulting in the magazine losing an estimated £225,000 and Maxwell using his commercial power to hit back with Not Private Eye.^[13]

In 1988, Maxwell purchased Macmillan, Inc., the American publishing firm, for USD $2.6 billion dollars, which by some estimates was over three times its value . In 1990 he launched an ambitious new project, a transnational newspaper called The European. However, the following year he was forced to sell his successful Pergamon Press and Maxwell Directories to Elsevier for £440 million to cover his massive debts, but he used some of this money to buy the ailing New York Daily News. At the time, he was hailed in New York City as the man who "saved the Daily News."

Death

On 5 November 1991, at the age of 68, Maxwell was presumed to have fallen overboard from his luxury yacht, the Lady Ghislaine, which was cruising off the Canary Islands, and his body was subsequently found floating in the Atlantic Ocean.^[14] He was buried on the Mount of Olives in Jerusalem. The official ruling was death by accidental drowning. Some commentators have alleged suicide, others he was murdered and hence spawned a whole cottage industry of conspiracy theories, which have little basis in fact .

Then Prime Minister, John Major, said Maxwell had given him 'valuable insights' into the situation in the Soviet Union during the attempted coup. He was a 'great character', Major added. Neil Kinnock, then Labour Party leader, spoke of him as a man with "a zest for life" who "attracted controversy, envy and loyalty in great measure throughout his rumbustious life." It was later alleged that Maxwell had been financing the Labour leader's private office and that Maxwell was an agent of MI6, the United Kingdom's Secret Intelligence Service.

Shortly before Maxwell's death, a former Mossad officer named Ari Ben-Menashe had approached a number of news organizations in Britain and the United States with the allegation that Maxwell and the Daily Mirror's foreign editor, Nick Davies, were both long time agents for the Israel intelligence service, Mossad. Ben-Menashe also claimed that in 1986 Maxwell had tipped off the Israeli Embassy in London that Mordechai Vanunu had given information about Israel's nuclear capability to the Sunday Times, then to the Daily Mirror. Vanunu was subsequently lured from London to Rome where he was kidnapped and returned to Israel, convicted of treason and imprisoned for 18 years.

No news organization would publish Ben-Menashe's story at first but eventually New Yorker journalist Seymour Hersh repeated some of the allegations during a press conference in London held to publicize The Samson Option, Hersh's book about Israel's nuclear weapons. On 21 October 1991, two Members of Parliament, Labour MP George Galloway and Conservative MP Rupert Allason (who writes books on the world of espionage under the pseudonym Nigel West) agreed to raise the issue in the House of Commons (under Parliamentary Privilege protection^[15]) , which in turn allowed British newspapers to report events without fear of libel suits. Maxwell called the claims "ludicrous, a total invention," and sacked Nick Davies.^[16]

The close proximity of his death to these allegations heightened interest in Maxwell's relationship with Israel, and the Daily Mirror published claims that he was assassinated by Mossad after he attempted to blackmail them.^[17]

Maxwell was given a funeral in Israel better befitting a head of state than a publisher, as described by author Gordon Thomas:

On 10 November 1991, Maxwell’s funeral took place on the Mount of Olives Har Zeitim in Jerusalem, across from the Temple Mount. It had all the trappings of a state occasion, attended by the country’s government and opposition leaders. No fewer than six serving and former heads of the Israeli intelligence community listened as Prime Minister Shamir eulogized: "He has done more for Israel than can today be said" (Gideon's Spies: The Secret History of the Mossad, St. Martin's Press, 1999).^[18]

A hint of Maxwell's service to the Israeli state was provided by Loftus and Aarons, who described Maxwell's contacts with Czech anti-Stalinist Communist leaders in 1948 as crucial to the Czech decision to arm Israel in their War of Independence that year. Czech military assistance was both unique and crucial for the fledgling state as it battled for its existence. It was Maxwell's covert help in smuggling aircraft parts into Israel that led to the Jewish state having air supremacy during their 1948 War of Independence.^[19] Jewish leaders were also grateful for Maxwell's intervention and material help in securing the freedom and immigration between 1988 -1991 of over one million Russian Jews through his friendship with Michel Gorbachev. Over seven hundred thousand Russian Jews emigrated to Israel.

Fraud revelations

Maxwell's untimely death triggered a flood of instability with banks frantically calling in their massive loans. His two sons Kevin and Ian struggled to hold the empire together, but were unable to prevent its collapse. It emerged that, without adequate prior authorisation, Maxwell had stolen hundreds of millions of pounds from the companies' pension funds.

Eventually, the pension funds were replenished with monies from investment banks Shearson Lehman and Goldman Sachs, as well as the British government.

The Maxwell companies filed for bankruptcy protection in 1992. His son, Kevin Maxwell was declared bankrupt with debts of £400 million. In 1995 Maxwell's sons Kevin and Ian and two other former directors went on trial for conspiracy to defraud, but were unanimously acquitted by a twelve-man jury in 1996.

In 2008, Maxwell's wife published her memoirs, A Mind of Her Own, which sheds light on her life with Maxwell when the publishing magnate was ranked as one of the richest people in the world.^[20]

A BBC drama titled Maxwell covering his life shortly before his death starring David Suchet was aired on 4 May 2007.^[21] Maxwell, through his software company Mirrorsoft, played a role in the acquisition of the video game Tetris from its developers in the Soviet Union and its eventual marketing and sale in the West.^[22]

In other media references, the character of Richard De Vere in the BBC sitcom To the Manor Born was reportedly based on Maxwell: De Vere was a Czech emigre who'd built a self-made fortune after settling in Great Britain. Alfred Marks also played Maxwell in a 1990s radio play for BBC Radio 4, entitled Maxwell: The Last Days.

An obituary for the Barclays banker Thomas Ashton states: "One Oxford resident who came to Ashton's attention was Robert Maxwell – to whom Ashton firmly forbade his managers to lend."^[23]

See also

• Headington Hill Hall, Oxford
• Scottish Daily News
• Perth Daily News, Australia

References

Further reading

• Short BBC profile of Robert Maxwell
• Accountancy Age timeline
• Department of Trade and Industry report on Maxwell's purchase of the Mirror Group
• Biography
• Hersh, Seymour. 1991. The Samson Option
• Thomas, Gordon and Dillon, Martin. (2002). Robert Maxwell: Israel's Superspy : The Life and Murder of a Media Mogul, Carroll and Graf, ISBN 0-7867-1078-0
• Henderson, Albert, (2004). "The Dash and Determination of Robert Maxwell, Champion of Dissemination," LOGOS. 15,2, pp. 65–75.
• A book by Martin Dillon, The Assassination of Robert Maxwell, Israeli Superspy
• Research report: details Robert Maxwell's other names
• Joe Haines (1988) Maxwell, Houghton Mifflin, ISBN 0395489296 .
• Robert N. Miranda (2001) "Robert Maxwell: Forty-four years as Publisher", in E.H. Frederiksson ed., A Century of Science Publishing, IOS Press ISBN 1586031481 .

Bower Tom| Maxwell the final verdict| Harper Collins 1996 ISBN 0 00 638424 2

Bower Tom Maxwell the outsider

• Roy Greenslade (1992) "Maxwell: The Rise and Fall of Robert Maxwell and His Empire," ISBN 1-55972-123-5

External links

• Hansard 1803–2005: contributions in Parliament by Robert Maxwell

Parliament of the United Kingdom
Preceded by Frank Markham	Member of Parliament for Buckingham 1964–1970	Succeeded by William Benyon