is still owed on it. So, in effect, the expenses on the two houses are approximately $500,000 a year, a staggering amount for the two sons to have dealt with before their arrest. During the meeting on the Tuesday after the murders, when the boys were told that the $5 million life-insurance policy had not gone into effect, it was suggested that Live Entertainment might buy the house on Elm Drive from the estate, thereby removing the financial burden from the boys while the house was waiting to be resold. Furthermore, Live Entertainment was prepared to take less for the house than Jose had paid for it, knowing that houses where murders have taken place are hard sells, even in as inflated a real-estate market as Beverly Hills.
Ads have run in the real-estate section of the
Los Angeles Times
for the Elm Drive house. The asking price is $5.95 million. Surprisingly, a buyer did come along. The unidentified person offered only $4.5 million, a bargain for a house on that street, and the offer was hastily accepted. Later, however, the deal fell through. The purchaser was said to have been intimidated by the event that occurred there, and worried about the reaction neighborhood children would have to his own children for living in the house.
The arrangement for Live Entertainment to purchase the property from the estate failed to go into effect, once the police investigation pointed more and more toward the boys, and so the estate has had to assume the immense costof maintaining the properties. Recently, the Elm Drive house has been leased to a member of the Saudi royal family—not the same prince who rented it before—for $50,000 a month to allay expenses.
Carolco, wishing to stifle rumors that Live Entertainment had Mob connections because of its acquisition of companies like Strawberries, an audio-video retailing chain, from Morris Levy, who allegedly has Genovese crime-family connections, and its bitter battle with Noel Bloom, hired the prestigious New York firm of Kaye, Scholer, Fierman, Hays & Handler to investigate the company for underworld ties. The 220-page report, which cynics in the industry mock as a whitewash, exonerated the company of any such involvement. The report was read at a board meeting on March 8, and the conclusion made clear that the Beverly Hills police, in their investigation of the Menendez murders, were increasingly focusing on their sons, not the Mob. An ironic bit of drama came at precisely that moment, when a vice president of the company burst in on the meeting with the news that Lyle Menendez had just been arrested.
Concurrently, in another, less fashionable area of the city known as Carthay Circle, an attractive thirty-seven-year-old woman named Judalon Rose Smyth, pronounced Smith, was living out her own drama in a complicated love affair. Judalon Smyth’s lover was a Beverly Hills psychologist named Jerome Oziel, whom she called Jerry. Dr. Oziel was the same Dr. Oziel whom Kitty Menendez’s psychologist, Les Summerfield, had recommended to her a year earlier as the doctor for her troubled son, after the judge in the burglary case in Calabasas had ruled that Erik must have counseling while he was on probation. During that briefperiod of court-ordered therapy, Jerome Oziel had met the entire Menendez family. Judalon Smyth, however, was as unknown to Lyle and Erik as they were to her, and yet, seven months from the time of the double murder, she would be responsible for their arrest on the charge of killing their parents.
On March 8, Lyle Menendez was flagged down by more than a dozen heavily armed Beverly Hills policemen as he was leaving the house on Elm Drive in his brother’s Jeep Wrangler, accompanied by his former Princeton classmate Glenn Stevens. Lyle was made to lie on the street, in full view of his neighbors, while the police, with drawn guns, manacled his hands behind his back before taking him to the police station to book him for suspicion of murder. The arrest came as a