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In May 1960, Freed and others were indicted on charges of
receiving payola. He pleaded not guilty to 26 counts of commercial
bribery; the biggest - for $10,000 - from Roulette Records. In
return, it was alleged that Freed played a chosen record eight or
nine times in a night.
Morris Levy (notorious Roulette boss) claimed "unjust
accusations" had been made and that DJs had signed affidavits
acknowledging they had never received any "consideration"
for playing Roulette platters.
The scandal forced the increasingly alcoholic Freed off the air.

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