Money Magazine Dumps Dorfman for Failing to Disclose Sources
Jan. 03, 1996
NEW YORK (AP) _ Money magazine said today it has fired columnist Dan Dorfman because the well-known stock market tipster had refused to tell its managing editor who his news sources were.
Dorfman has been on a paid leave of absence from the magazine since October when a Business Week magazine report said federal authorities were investigating his relationship with a frequent source as part of an insider-trading probe.
Money managing editor Frank Lalli said Dorfman was fired Monday. There was no allegation of wrongdoing in the dismissal announcement and Money said its investigation was not completed.
Dorfman had been hired by Money in late 1994 and began writing his Money columns in January 1995. He is widely known for his reports on the CNBC cable network and previously as a columnist for USA Today.
His reports often trigger wild swings in the stock prices of companies he mentions, and some companies complain he is reckless.
CNBC said it was standing by Dorfman.
``We believe that a presumption of guilt coupled with a blanket request for all sources could have a chilling effect on the ability of journalists to do their jobs and protect the public interest,'' the network said in a statement read by spokesman Brian Lewis. ``Dan Dorfman is an asset to CNBC and we still have no reason to believe he has violated any law or failed to adhere to the standards of the company,''
A call to Dorfman at CNBC for comment was not immediately returned. But CNBC said on the air that Dorfman had issued a statement saying that he could not comply with sweeping demands from the magazine publisher to identify sources in past articles.
Dorfman previously has denied any wrongdoing, and has continued to appear on CNBC.
Money's Lalli began an investigation into the allegation in a Business Week magazine article in October while Dorfman was on a temporary leave with pay from Money.
``Irrespective of the ongoing investigation's ultimate outcome, the serious issues raised about Dorfman and his sources convinced me that I had to know his sources for his Money columns,'' Lalli said in a statement.
``I needed that information to maintain my confidence in the quality of the information we publish. Dorfman declined to tell me who his sources were,'' Lalli said.
Since Dorfman was unwilling to tell the managing editor of Money who his sources were, Lalli said he could not evaluate the quality of the information in his columns for the magazine.
``Therefore, his continued employment here is impossible,'' Lalli said.
Dorfman had reportedly been signed to a six-figure contract with Money. He left USA Today to take the job.