Hollinger Inc Makes Deal in Conrad Black Fraud Case

17 May 2006

Erstwhile media mogul Lord Conrad Black is facing the prospect of his Canadian company Hollinger Inc testifying against him in next year's federal fraud and racketeering trial [WAMN: 02-Dec-05].

H-Inc, through which his Lordship once controlled Chicago-headquartered publisher Hollinger International, says it has reached a deal with US prosecutors to provide documents and possible witnesses. In return, the company, with its new board, will not face charges.

The ex-newspaper baron, who once owned the Telegraph Group in the UK, is alleged to have looted H-Intl of $84 million (€65.5m; £44.6m). Black and three former associates deny the charges.

Prosecutors allege they schemed to dip into proceeds from sales of H-Intl newspapers by paying themselves and companies they controlled, including H-Inc, 'noncompete' payments related to the asset sales.

Edward Greenspan, a lawyer for Black, said H-Inc's cooperation agreement "is in no way indicative of the guilt or the innocence of the defendants in this case".

Data sourced from Wall Street Journal Online; additional content by WARC staff