Cityfile: New York's Most Notable and Influential

According to the Post, ex-publicist/alleged hacker Ali Wise doesn't have too many friends these days:

Pals of former Dolce & Gabbana mouthpiece Ali Wise -- who used her access to designer swag to leverage friendships on both coasts -- are rushing from her side like rats from a sinking ship after she was charged with hacking into female rivals' voice mails.

But clearly not all of Ali's pals are jumping ship. An unidentified friend sent along these thoughts on the case last night:More

Galleon Group, the hedge fund founded by Raj Rajaratnam, the man at the center of the insider trading scandal that has rocked Wall Street in recent days, is shutting its doors. (Apparently, investors get a bit nervous when they see the CEO of the hedge fund they've invested in get hauled away in handcuffs and quickly ask for their money back.) Galleon is now reportedly looking to sell off the firm's assets, so if you're looking to pick up a hedge fund on the cheap, you probably should email to Raj as soon as possible. Oh, and yes, we tested out Raj's email address a few minutes ago and it still appears to be operational. So you're all set on that front. Do be sure to let us know how your negotiations go, though. [NYT]

The Apologies Go On | Were you hoping to see the David Letterman saga subside this week so we could all turn our attention to, say, more serious public sex scandals such as one that quite possibly involved breaking the law? It doesn't look like that's going to be happening. Following another day of over-the-top coverage (including a series of interviews by Gerald Shargel, the lawyer defending alleged extortionist Joe Halderman,  Letterman will once again address the scandal on his show tonight and apologize to his wife and staff. [AP, ABC News, NYP]

In Defense of Ali | The new issue of Page Six Magazine (which is now back as a quarterly) has an update on Ali Wise, the socialite/publicist who was arrested back in July for allegedly hacking into the voicemail of socialite/interior decorator Nina Freudenberger. More

The New York Post has had a field day this week with the (quite possibly false) rumor that Eliot Spitzer is supposedly thinking about jumping back into politics. That Tuesday cover story led to a Wednesday cover featuring a response from Ashley Dupre's mom; then, yesterday, Ashley herself responded to the Spitzer story before going on to suggest that she really isn't all that different than many women in Manhattan, and that the line between a prostitute and an ordinary gold-digger is a thin one. Dupre's remarks generated a third Post cover yesterday, and although a response to Dupre's comments from a handful of random women today didn't justify the cover of the paper today (despite the fact the Post it's now describing it as a "citywide catfight), it did give the paper an excuse to post one more photo gallery of Dupre in a skimpy bikini. Think the Daily News is feeling a little left out? You bet it is! More

Sheryl Weinstein's Husband Is a Bit Conflicted | The world's most unfortunate husband, Ron Weinstein, has a few thoughts on the book his wife Sheryl decided to write about having an affair with Bernie Madoff. Yes, he says, he tried to talk his wife out of writing it. And yes, detailing Bernie's penile dimensions "was trashy." But "affairs are commonplace," he says, and really "shouldn't be such a big deal," although in this case he concedes it's a bit complicated since the man she happened to have an affair with is also "the biggest crook in the world" and stole all of Weinstein's money.More

How many star photographers who regularly shoot for Vanity Fair now find themselves in the middle of financial scandal? Two! There's Annie Leibovitz, of course, who was sued last month over a $24 million loan. Then there's François-Marie Banier, the photographer responsible for Vanity Fair's July 2009 cover featuring Johnny Depp, who goes on trial next month in France for allegedly exploiting Liliane Bettencourt, the 86-year-old heiress to the L'Oréal cosmetics fortune, who has handed Banier some $1.3 billion in cash, stock, and art in recent years. Naturally, these things usually come in threes. Watch your step, Patrick Demarchelier!

Sebastian Oppenheim Reconnects with His German Roots | It typically takes the star of a reality TV show a couple of months to go from (minor) fame to infamy. But it looks like Sebastian Oppenheim of NYC Prep really is the precocious brat he made himself out to be on the show! Because it's only been two days since the Bravo series ended and he's already dressing up as a Nazi. [NYM/Daily Intel]

Ali Wise, the publicist and social fixture accused of hacking into another socialite's voicemail, is going to have plenty of time to work on her defense from now on. WWD reports today that Wise is longer employed by Dolce & Gabbana. (Unfortunately, the fashion house wouldn't "elaborate" on her departure, so we don't know the specifics.) Don't think she's sitting at home watching bad television and eating ice cream, though. Judging by the number of exclamation points, it seems like she was in a pretty good mood last night when she headed out to attend the Pete Yorn concert. [WWD]

Jeffrey Epstein, Sex Offender For Life | Pervy money manager Jeffrey Epstein got out of prison yesterday, which means he can finally begin to put the last couple of years behind him and move on with his life, right? Not really. Since Epstein pleaded guilty to soliciting underage prostitutes, he had to register as a sex offender yesterday, a status that will be with him for the rest of his life. (That could explain the not-so-happy look on his face in this photo.) Florida's sex offender registry helpfully allows you to sign up for alerts so you're notified if someone moves to a new location. Naturally, if Epstein ever decides to leave his Palm Beach mansion and return home to his 45,000-square-foot, eight-story townhouse on East 71st Street, we'll be sure to notify you immediately. Epstein's full "predator flyer" is below.More

Just Another Day in Jersey | Residents of the Garden State woke up this morning to hear that more than three dozen elected officials, religious leaders, and local businessmen had been arrested as part of a federal investigation into corruption and money laundering. And it already sounds like a movie dreamed up by a bunch of Hollywood screenwriters with over-active imaginations. In addition to the politicians accused of playing a role in the scheme—the mayors of Hoboken and Secaucus were both arrested—there's a network of Orthodox rabbis involved, and the money laundering ring is alleged to have trafficked in everything from human organs and fake designer handbags. Congrats, Jersey residents. You really outdid yourselves this time. [AP, WSJ]

Guess who's been released from prison? That would be Jeffrey Epstein, the secretive money manager who pleaded guilty in 2007 to soliciting underage teen girls for sex. Epstein has spent the last year or so in a Palm Beach prison, although he hasn't had to spend every minute of the day confined to a cell. As part of a work-release program, Epstein was allowed to leave his cell during the day and work from an "office" in West Palm Beach, work that reportedly involved helping the government build a case against the Bear Stearns hedge fund that imploded last year and cost Epstein the $67 million he'd invested in the fund. His cooperation helped shave six months off his sentence and early this morning Epstein skipped out of jail, using a side entrance to avoid the reporters that had gathered outside to greet him. But while his lawyer told a reporter that Epstein is thrilled that "this part of his life is over," and he's "ready to move on to other things," it doesn't look like he's totally put his past behind him.More

We've received a bit more info on Ali Wise, the Dolce & Gabbana publicist and social fixture who was arrested this week for allegedly hacking into the voicemail account of interior designer Nina Freudenberger. And it looks like Freudenberger may not be quite as innocent as she's led on. As Page Six reported today, the man at the middle of this little squabble is Josh Deutsch, the founder of Downtown Records. 

Jeffrey Epstein, the shadowy money manager who pleaded guilty in 2007 to soliciting underage teen girls for sex, is expected to leave a Florida prison in a couple of weeks. (Not that he's been spending much time behind bars in recent months: As part of a work-release program, he's been allowed to leave the jail from 10am to 10 pm, six days a week, to "work" out of his "office" in West Palm Beach.) But while Epstein has something to be cheerful about these days, one of his old acquaintances was handed a major defeat last week. Maximilia "Ava" Cordero, the transgender teenager who sued Epstein and claimed she'd been forced to engage in "bizarre and unnatural sex acts" with the billionaire in exchange for his help advancing her career as a model, just lost her libel and defamation lawsuit against the New York Post. More

The financial collapse has gifted us with some first-class public relations kerfuffles—those bonuses at AIG and the big three automakers arriving in DC via private jet, to name just two—and there might be another one on the horizon. AIG is giving the survivors of the Miracle on the Hudson plane crash a hard time about reimbursing them for their lost property, medical care and therapy bills.More