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THE TRIAL of CONRAD BLACK Introduction the Verdicts Are In, and the Future Is Many Enemies for the Prosecution That Focus This Month We Somewhat Unclear

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THE TRIAL OF CONRAD BLACK Introduction The verdicts are in, and the future is many enemies for the prosecution that Focus This month we somewhat unclear. One thing, however, led to yesterday’s guilty verdicts. He report on the trial is certain. Conrad Black—Lord Black of condemns the U.S. justice system for a and conviction Crossharbour—has fallen a long way. ‘vicious and relentless’ inquisition. He of Lord Black of A convicted felon, Black faces a sentence fingered his first accuser, former U.S. Crossharbour on of up to 35 years in jail. He remains free securities regulator Richard Breeden, as charges of fraud on $21-million bail, but is restricted to a corporate-governance ‘zealot.’ And he and obstruction living in either the Chicago area (where has cast his rebellious shareholders as of justice in a Chicago court. he will be sentenced) or in his Palm ‘ingrates’ and ‘terrorists.’ After a spectacular Beach, Florida, home. “The one person Lord Black seems business career, A former Canadian who gave up genetically incapable of blaming is Black finds himself his citizenship for a British honour, himself. For the sad truth is, he was his an exile from Black may never be able to return to own worst enemy. Had he simply folded Canada facing a his Toronto home. His conviction will his losing hand when shareholders of long sentence as a prisoner in a U.S. likely prevent him from ever being Hollinger International Inc. first called jail. This News in able to regain his Canadian citizenship. him a ‘thief’ in 2002, Lord Black would Review module Hundreds of people have already begun a probably not be facing the humiliation of explains some of campaign to revoke his Order of Canada prison.” the reasons why (only two people have so far had their According to McNish, it was Black’s this has happened. membership revoked). pride that made it almost impossible His major business enterprises are in for him to avoid a good fight. He had tatters. His personal assets are frozen. battled with shareholders and employees Further Research U.S. government prosecutors are throughout his career. He never admitted A detailed timeline seeking the forfeiture of his Palm Beach any wrongdoing. And, she writes, “. of major events in property as well as his ownership interest he enriched a generation of libel lawyers the life of Conrad Black can be found in the company he was convicted of with a furious barrage of defamation on the CBC Web defrauding. lawsuits against anyone who accused site at www.cbc.ca/ During his trial, more than a dozen him of wrongdoing.” Ultimately, this news/background/ lawsuits against Black were put on kind of behaviour probably forced the black_conrad/ hold. These will now resume, and justice system to go after him. timeline.html. they include serious cases involving Black’s trial became a spectacle for the Ontario Securities Commission Canadians who watched his career and the U.S. Securities and Exchange for decades with fascination, if not Commission. The biggest civil lawsuit always with admiration. He had built —for $542-million—was brought by an international newspaper empire that Sun Times Media (formerly Hollinger gave him entry to the highest reaches of International). It involves issues identical society at home and abroad. Unhappy to those for which Black and other with the political leanings of most executives were facing charges in the Canadian newspapers, he founded the criminal trial. National Post to give a strong voice to How could this happen? Canada’s conservatives. Himself a writer, In a devastating article in The Globe he was respected for his biographies of and Mail (July 14, 2007), Jacquie Maurice Duplessis and Franklin Delano McNish gave a one-word answer: pride. Roosevelt (his recent biography of She wrote: “Conrad Black has blamed Richard Nixon was perhaps somewhat CBC News in Review • September 2007 • Page 6 less successful). Black and his wife stands much of a chance. Most expect Did you know . Barbara Amiel (also a writer) maintained that he faces somewhere between five Out of the more than 5 500 Order elaborate homes in Toronto, London, and and 10 years in prison. of Canada honours Palm Beach. Even should the appeal succeed, the awarded over Some Canadians felt a little bit legal battles will continue. the last 40 years, of schadenfreude when the guilty Lawsuits and legal fees will eat away only two have verdicts were announced. But polls at what is left of Black’s corporate been rescinded: have indicated that the majority, while empire—and likely a good part of his aboriginal leader David Ahenakew unsurprised, were saddened by the news. personal fortune as well. All in all, a for anti-Semitic It’s a good thing that Conrad Black sad ending to a notable—and often comments and loves a good fight. Few legal experts notorious—career. hockey lawyer think his appeal in the criminal case Alan Eagleson after his conviction For Discussion on fraud charges. In 1990, Conrad Black received one of Canada’s most prestigious awards, membership in the Order of Canada (www.gg.ca/honours/nat-ord/oc/index_ e.asp). A movement is underway to strip him of this honour; the advisory council Definition on the Order of Canada to the Governor General is expected to discuss his award Schadenfreude is a this fall. In your opinion, does his conviction in a U.S. court on fraud charges very useful German justify taking away his membership? If it does, should the advisory council wait word that has no until the appeal process is completed? exact equivalent in English. The Canadian Oxford Dictionary defines it as “the malicious enjoyment of another’s misfortunes.” CBC News in Review • September 2007 • Page 7 THE TRIAL OF CONRAD BLACK Video Review Answer the following questions in the spaces provided. Quote “Greed is a motive 1. Name the first newspaper that Conrad Black acquired. __________________ that has not failed to move 2. What was “his first big corporate prize”? _______________________________ me.” — Conrad Black, quoted in How much was it worth? ____________________ the National Post September 1, 2004 3. Which of Black’s special interests turned into “a stage-managed metaphor for his career”? Did you know . Conrad Black spearheaded fundraising to 4. Why was ownership of the London Daily Telegraph so important to Black? complete the largest Canadian war memorial in Britain. The 5. How many newspapers did Black’s company own at the height of his Canada Memorial career? _____________ sits near Buckingham Palace 6. Which national newspaper did Black found in Canada? __________________ and is a tribute to Canada’s efforts to 7. What did Black have to give up in order to become a member of Britain’s help Britain in two House of Lords? world wars. Today the memorial is in disrepair, and Black is unable to fund 8. What would it have cost Black to settle his dispute with the board of its restoration. directors of Hollinger International? ___________________________ 9. Who gave key evidence against Black during his trial? What was his relationship to Black? 10. What does a newspaper owner guarantee when he sells a newspaper and receives a non-compete payment? 11. Black finally faced a total of 13 different counts or criminal charges. Of how many was he found guilty? ________________ 12. What step has Black already taken as part of his appeal process? CBC News in Review • September 2007 • Page 8 THE TRIAL OF CONRAD BLACK The Charges Few observers would doubt that the included a party that Black threw for Further Research The charges U.S. government prosecutors, when they his wife Barbara Amiel’s 60th birthday, against Black filed their charges, were out to make costing about $65 000. Black had are outlined in an example of Conrad Black. Black Hollinger pick up part of the tab, calling greater detail at was originally indicted on a total of 14 it as much a business gathering as a www.cbc.ca/news/ criminal counts. If convicted on all of personal function. The second example background/black_ them, he faced a total of up to 101 years was the use of a company jet to fly the conrad/charges. in prison and $164-million in fines. He couple to a private holiday on Bora Bora. html. would also have to forfeit up to The third example involved the purchase $92-million in assets. by Black of his New York apartment Did you know . One charge against Black—that of from Hollinger International. The Hollinger money laundering—was dropped during prosecutors alleged that the apartment, International is the trial. The remaining 13 fell into purchased by Black for $3-million, was the American several categories. intentionally grossly undervalued. (When corporation whose the apartment was sold in October 2005, stockholders’ Non-Compete Agreements the Chicago U.S. Attorney seized the $9- accusations against million proceeds from the sale.) Black led to the The bulk of the charges related to non- filing of U.S. compete payments made to Black and criminal charges. two other defendants. Non-compete Tax Fraud However, Hollinger payments are not uncommon in the Black and the three other defendants Inc. is a Canadian newspaper industry. When a newspaper were also charged with tax fraud related holding company is sold, the new owner will often seek to Hollinger International’s 1999 and that Black and an agreement that prevents the seller 2000 tax returns. Both charges accuse his associates own, and that from starting another paper in the same the defendants of underreporting the holds a majority market.
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