Media tycoon Black faces fraud charges
Conrad Black, the former owner of the Daily Telegraph, and three other executives have been charged with fraud in America involving the $2.1bn ($1.79bn) sale of several hundred Canadian newspapers and the abuse of company perks at newspaper publishing company Hollinger International.
Black, 61, Hollinger International’s ousted chairman, was accused in the 11-count indictment of cheating the company’s US and Canadian shareholders as well as Canadian tax authorities.
Black and the others were accused of fraudulently diverting more than $32m (€27.3m) from the company through a complex series of transactions. Former Chicago Sun-Times publisher David Radler pleaded guilty to similar charges in September.
But the indictment also outlines fresh allegations, including what federal prosecutors described as the fraudulent diversion of an additional $51.8m (€44.2m) in 2000 from Hollinger International’s sale of assets to CanWestGlobal Communications.
Black’s lawyer, Edward Greenspan, said in a statement that Black was confident he would be cleared “if given a full and fair opportunity to defend himself”.
“Conrad Black asserts his innocence without qualification with respect to each and every one of the charges set forth in the indictment,” Greenspan said.
“It will be shown that he has, at all times, acted within the law.”
Molly Morse, a spokeswoman for Hollinger International, said the company had no comment on yesterday’s indictments.
Hollinger Inc, the Toronto-based holding company that has voting control over Hollinger International, also refused to comment.
Prosecutors said that Black with others had arranged to funnel payments to themselves that were disguised as “non-competition” fees.
The charge says that Black and one of his co-defendants fraudulently misused corporate perquisites, including a company jet for a vacation by Black and his wife in the South Pacific, two Park Avenue apartments and company money for a lavish birthday party for Mrs Black.
Also charged in the indictment were John “Jack” Boultbee, 62, a Toronto-area accountant; Peter Atkinson, 58, a Canadian lawyer and former executive vice president of Hollinger International; and lawyer Mark Kipnis, 58, of Northbrook, a Chicago suburb.
Also named as a defendant was Ravelston Corporation, a Canadian company that Black used to gain control of Hollinger International.
