Rupert Murdoch's News Corp empire could face charges in America over phone hacking scandal after it was claimed that The News of the World hacked into Jude Law's phone while he was in the United States.

It is the first specific case of hacking on U.S. soil leaving the company open to prosecution under federal law.

The alleged hacking of Law and his personal assistant Ben Jackson took place shortly after they arrived at JFK airport, meaning their phones were operating in U.S. mobile networks.

Prosecutions and costly law suits could be launched in the U.S. regardless of where the hacker was based.

The company is already facing investigations by the FBI and Attorney General over claims the relatves of 9/11 victims were hacked.

Murdoch's American empire is also said to be 'exploding and unravelling' as he faces the threat of losing control of his Fox and other cable networks if found guilty of breaching anti-corruption laws.

One of the tycoon's most senior deputies Les Hinton has already quit  as CEO of Dow Jones, which published the Wall Street Journal. He was  chairman of the UK subsidiary News International when the hacking took place.

He said he had no knowledge of the hacking.

Law, 38, who is also suing the News of the World's stablemate The Sun, claims that the Sunday tabloid hacked into his phone and used the messages for four articles in 2005 and 2006.

The hacking is alleged to have taken place when he was staying in New York en route to Canada to film I Heart Huckabees.

The story claimed that Law had sent his personal assistant ahead when he arrived at JFK to check for waiting photographers and ring him if it was safe to emerge. A News of the World reporter watched Law arrive at the airport.


Crumbling empire: Rupert Murdoch has alreadty seen Dow Jones CEO Les Hinton, right, resign amid claims he could lose control of his U.S. cable networks

The News of the World story said: 'The star ... refused to leave the baggage reclaim hall until Ben had spent 20 minutes scouring the arrivals lounge. Ben rang Jude on his mobile to confirm the coast was clear.'

It also detailed where Law was staying and how much his hotel bill came to.

The story went on to give details of Law's arrival at The Carlyle Hotel that evening. It also gave the number of the room where Law was staying and how much he spent on room service.

 
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Brian Kabateck, a Los Angeles lawyer who has represented victims of phone hacking in the U.S. told the Daily Telegraph: 'If phones or messages were hacked while these individuals were here in the US, this would clearly be a criminal offence under the federal wiretap acts.

'The authorities take this very seriously here. As well as being an offence under federal status, the victims would also have the right to bring a civil damages case.'


Splash: Front page of the August 1, 2007 edition of the Wall Street Journal reporting that Rupert Murdoch's News Corp will purchase Dow Jones & Co

As well as civil cases in the U.S., News Corp could face prosecution under the 1977 Foreign Corrupt Practices Act which makes it illegal for American firms to bribe foreign officials after the company allegedly paid British police officers for information.

Salt was rubbed into the wound by comments  from John Podesta, president of the Centre for American Progress, a liberal think tank, and the man who helped Obama's transition to the White House in 2008.

He told the Globe and Mail: 'This is not one rogue editor. This is an empire that was built on a set of journalistic ethics that's beginning to explode and unravel.

'They were routinely bribing public officials. We've called attention to the fact that this story is going to go on for a while, this is not a two-week story, I don't think.'

He is one of a number of senior Democrats hoping Murdoch's U.S. empire will fall in the wake of the scandal.

The White House has long fought with Fox News, owned by News Corporation, and boycotted the channel for a time.

Now there are increasing signs Murdoch could lose control of all his cable channels in America, which include National Geographic and FX as well as Fox.

Under federal law, holders of television and radio stations licences have to undergo character tests to show they are fit and proper to be media owners.


Probe: Attorney General Eric Holder is considering launching a formal investigation into claims News Corp, for which John Podesta, of the Centre for American Progress, predicts a dire future

Murdoch seems unlikely to pass those tests if Wall Street’s fierce regulator, The Securities and Exchange Commission, seeks to enforce the part of the foreign bribery law that requires companies to keep accurate books, according to the Los Angeles Times.

If it is proven that a company violates this and U.S anti-bribery provisions, there is a penalty of up to $2m, and if convicted, employees could face up to five years in prison.

Julius Genachowski, chairman of the Federal Communications Commission, reportedly said this week the allegations should be investigated, but did not say whether his organisation would launch such a probe.

Yesterday Mr Holder confirmed the Department of Justice is responding to calls from lawmakers to investigate claims News Corporation hacked into the phones of 9/11 victims.

At a press conference in Sydney, he said: 'There have been serious allegations raised in that regard in Great Britain; there is an ongoing investigation.

'There have been members of Congress in the United States who have asked us to investigate those same allegations. And we are progressing in the regard using the appropriate federal agencies in the United States.'

He also confirmed reports yesterday that the FBI has launched its own informal probe into the allegations.


 

It comes as senior Democrats questioned whether Murdoch's American papers, such as the New York Post and the Wall Street Journal, may also have engaged in telephone hacking.

The Democratic Senate Campaign Committee has already launched an online petition to demand the truth from Murdoch.

It reads: 'It's time for Rupert Murdoch to come clean and immediately tell the American people whether his company targeted any American's here at home. Sign our petition to demand the truth.'

Representative Peter King wrote: ‘If these allegations are proven true the conduct would merit felony charges for attempting to violate various federal statues related to corruption of public officials and prohibitions against wiretapping.

‘Any person found guilty of this purported conduct should receive the harshest sanctions available under law.’

A spokesman for News International denied the new claims against the Sun, Britain's best selling daily newspaper.

The company issued a statement saying: 'We believe this is a deeply cynical and deliberately mischievous attempt to draw The Sun into the phone-hacking issue.'


'By their own admission, News International have misled the police, parliament and the public for nearly five years about the extent of the wrongdoing by their journalists and executives.

Some in the business world think Murdoch’s days are numbered at the helm of News Corporation.

Porter Bibb, managing partner at Mediatech Capital Partners, was reported as saying: ‘It is very likely, there will be at some point... an entire new management. 

‘It’s a fine company, it has great assets and a terrific future but Murdoch’s influence despite his de facto ownership is going to being diminished.’