For Immediate Release: July 27, 2007

TWO MEN ARRESTED IN CONNECTION WITH SCHEME TO EXTORT ACTOR TOM CRUISE FOR MORE THAN $1 MILLION FOR PHOTOS

Two men were arrested by FBI Agents this week for their roles in a scheme to extort actor Tom Cruise for $1.3 million in exchange for copies of Mr. Cruise’s wedding photos which had been stolen, announced J. Stephen Tidwell, Assistant Director in Charge of the FBI in Los Angeles.

David Hans Schmidt, 47, of Arizona, was taken into custody in West Hollywood on Tuesday and Marc Gittleman, 33, of West Hollywood, was taken into custody at his residence last night. Schmidt was afforded an initial appearance before a U.S. Magistrate on Wednesday and has posted bail in the amount of $100,000. Gittleman will be afforded an initial appearance in U.S. District Court in Los Angeles this afternoon.

Actor Tom Cruise was married overseas in November 2006 and had retained a photography studio for the event. A contract between the studio and Mr. Cruise states that the studio is the “authorized photographer” for the event and contains a stipulation stating that that all photographs are solely and exclusively owned by Mr. Cruise. Further, the contract stated that the photographs could not be reprinted, shown, sold, displayed or copied without the consent of Mr. Cruise. The studio also contractually agreed that the photographs would remain confidential. There has been no known release of Mr. Cruise’s wedding photographs taken by the studio that has not been authorized by Mr. Cruise.

According to criminal complaints filed in U.S. District Court in Los Angeles, Schmidt and Gittleman carried out the extortion scheme as follows:

In May 2007, Schmidt contacted Mr. Cruise’s representatives and claimed to have approximately 4,000 photographs of Mr. Cruise and other celebrity guests who attended the wedding. Schmidt sent e-mails with Mr. Cruise’s wedding photos attached as proof that he had the photographs in his possession. In June, a private investigator conducted an undercover operation in West Hollywood with Schmidt, who brought multiple wedding photos. Schmidt said he had no information about how the images were obtained but claimed that he was acting on behalf of a “Mr. X.” Schmidt claimed he could sell the images in foreign countries where U.S. copyright laws are not enforced. According to the complaint, Schmidt solicited $1.3 million in exchange for the return of the wedding photos to Mr. Cruise. According to the complaint, Schmidt, during negotiations with the studios and a private investigator, threatened to post the photos on the Internet or sell the photos on the black market, if he was not paid the sum requested. Moreover, Schmidt sent e-mails stating he was not concerned with the unlawful nature of his actions.

Once the extortionate request was referred to federal authorities, the FBI in Los Angeles initiated an investigation to obtain additional evidence and to identify the source of the stolen photographs and Schmidt’s co-conspirator.

On July 24, Schmidt agreed to meet a representative of Mr. Cruise and an undercover FBI Agent at a location in West Hollywood. After the meeting, Schmidt was taken into custody and charged with sending e-mails in connection with the extortion scheme.

Further investigation revealed the identity of “Mr. X” as Marc Gittleman. Gittleman conducts a computer data recovery business from his home in West Hollywood. According to the complaint filed this afternoon, Gittleman’s services had been retained by Mr. Cruise’s authorized photographer when his hard drive containing the wedding photos had failed. According to the complaint, Gittleman successfully recovered the data from the failed drive and made multiple personal copies of the wedding pictures before returning the drive to the photography studio. Gittleman then allegedly contacted Schmidt after conducting research on the Internet where he learned of Schmidt’s stated ability to negotiate the sale of celebrity photographs.

On July 26, FBI Agents arrested Gittleman at his residence. Gittleman is charged with conspiracy to commit extortion.

This investigation is ongoing. This case will be prosecuted by the United States Attorney’s in Los Angeles.