Klein helped Lennon and Ono with their film Imagine, and helped Harrison to organize the Concert for Bangladesh. It was here that his reputation started to unravel. Rather than prearrange matters with UNICEF, Klein waited until after the concert to approach them, leading to questions about the proceeds, and finally a US tax investigation. While a check was cut at the time, additional proceeds meant for UNICEF were frozen in an escrow account until the 1980s. Also, Klein had sided with Harrison in believing Yoko Ono should not perform at the concert, wanting Lennon to appear without her, causing Lennon to cool on Klein. (He later took out his feelings toward Klein in "Steel And Glass," which appeared on his 1974 album Walls and Bridges.) After several suits and countersuits, Klein settled for a final payment of £3.5 million in 1977. In 1978, he was parodied by John Belushi as "Ron Decline" in the TV film All You Need Is Cash (a roman à clef with the Beatles' turned into The Rutles).

Klein and Harrison were not completely finished with each other. While Klein had supported and advised Harrison during the first phase of his "My Sweet Lord" lawsuit, Klein later bought Bright Tunes, the music publishing company that sued Harrison, thus becoming his legal opponent. A judge ruled later that Klein had unfairly switched sides of the lawsuit, and in the end it worked against Klein in court and Harrison ultimately became the owner of "He's So Fine," the song at the heart of the case.

I don't think Klein had alot of friends during this time!

Well, you're not completely nailing it, but you're close... The proceeds were diverted for years so that he could reap the benefits of the accrued interest. No one was ever certain how many lives would have/could have been saved, had the money been rushed there, rather than diverted for the extra shekels the interest provided to him.

However, he wasn't satisfied there; he had his record chain stocked with albums he had written off as cut-outs - 'promotional freebies'. This act got him nailed for tax evasion, and he served federal time on that one.