Phone call key to cup spy scandal

By EUGENE BINGHAM and TONY WALL

A 30-minute phone call between yachting legend Chris Dickson and fellow New Zealander Sean Reeves is the crucial focus of an America's Cup espionage scandal.

The Herald can reveal the man accused of trying to sell secret design and technical plans worth $6 million is Reeves, a 40-year-old former lawyer who left Team New Zealand last year and lured others with him to the Seattle-based One World syndicate.

He also is accused of trying to pass information about Team NZ.

The case hinges on a phone call Reeves made to Dickson, who leads the California-based Oracle Racing team backed by computer billionaire Larry Ellison.

Dickson alleges that during the July 17 conversation, Reeves offered to sell him design and technical secrets about One World and Team NZ.

But Reeves said yesterday that he and Dickson chatted about old yachting stories and their babies.

Reeves denied offering information to Oracle or any other syndicate and said he would sue One World over the allegations.

The affair is now before the King County Superior Court in Seattle where One World is seeking an order gagging Reeves and forcing him to return any syndicate information.

Documents originally filed in the court referred to the defendant only as "John Doe".

Reeves' identity was uncovered in documents obtained by the Herald.

He sailed at the Olympics for New Zealand and was involved in the winning America's Cup campaign in 1995.

After acting as a legal rules adviser for Team NZ last year, he helped American billionaire Craig McCaw establish a new syndicate.

Reeves was involved in signing other team members, including veteran sailor Craig Monk and designer Laurie Davidson.

He said yesterday that he created One World and it was "my baby". His departure this year was "mutually negotiated".

"I did not resign and I was not sacked," he said.

"I did not agree with a certain restructuring proposal and the direction the syndicate was taking."

Reeves said the departure agreement included a 12-month restraint of trade and a confidentiality clause.

In a declaration to the court filed in California, Dickson said he phoned Reeves back after receiving a message from him.

"He said that he held knowledge from the design and technical perspective of the One World programme and the previous Team New Zealand programme.

"Reeves also said that he had come to a financial settlement with One World that was less than he had been expecting and that he was looking to recover some of his losses.

"Reeves told me that he held line plans, rig plans, keel plans and deck layouts but did not specify for which boats or which teams."

After a 30-minute conversation, Dickson said Oracle was not interested in receiving any information.

A week later, Dickson rang Reeves and said Oracle had told One World about his offer, but had not named him.

Reeves said he phoned Dickson because he had read a magazine article about him and found it amusing.

"We spoke on the phone and had a bit of a giggle," he said. "Then we talked about our babies."

Reeves said no offer was made to sell or exchange information.

"I've had a long association with Chris," he said. "We had some difficulties. We had a bit of a falling out in 1984 - it was a personality clash. Our relationship now is reasonably good."

He suggested the allegations - which had "no foundation in law or fact" - were a "stunt" and part of gamesmanship between Oracle and One World.

"There is a bigger game between One World and Oracle which will backfire on them."

Reeves said the thought of fighting legal action in America was daunting.

"I'm training to be a pro-tennis coach, I have a new baby, I'm not on a huge income," he said.

"All of a sudden here's the spectre of ... having to defend myself against not one but two billionaires. What are they trying to do? Are they bitter that I'm out there in the big wide world and I hold all this information in my head?"

Reeves said information and trade secrets had been swapped between syndicates since last year.

He hoped to be involved in the next America's Cup.

"But the cup has got to be the best breeding ground of paranoia I've ever witnessed," he said. "No one trusts each other."

In a court declaration lodged in Seattle, One World chief executive Gary Wright said the information allegedly offered was worth more than $US2.5 million ($5.9 million).

One World lawyer Robert Maguire said in another declaration: "Reeves came as close to disclosing One World's information to Oracle without actually doing so - prevented only by Oracle's refusal to accept any such information."

On August 16, Judge Steve Scott granted a One World request for a court deposition to be taken from Dickson revealing the identity of "John Doe".

The case is next set down for hearing in Seattle next month.

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