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Lord Black of Crossharbour, once one of the most powerful press barons in the world, faces 15-20 years behind bars after a jury declared him guilty yesterday of looting the newspaper empire he built.
The former Telegraph chairman was convicted of three counts of fraud and one charge of obstruction of justice at the climax of a four-month trial in Chicago.
Black breathed heavily as he listened to the jury foreman read the verdict, clearing him of nine of the thirteen charges against him. He avoided the gaze of his wife, the columnist Barbara Amiel, until she asked a lawyer for a scrap of paper to scribble him a note. He passed her a message back.
The verdict completes the public disgrace of the Canadian-born peer, a friend of Baroness Thatcher who was elevated to the House of Lords by Tony Blair at the request of William Hague. The Conservative Party withdrew the whip from him last night, removing his right to sit as a Tory in the Lords.
Eric Sussman, the lead prosecutor, told the judge: “Even under the most conservative estimate of the sentencing guidelines, Mr Black is facing between 15 and 20 years.”
Black, a leading figure in conservative circles, controlled 600 titles including The Daily Telegraph, The Sunday Telegraph, The Spectator, The Jerusalem Postand the Chicago Sun-Times and named luminaries such as the former US Secretary of State Henry Kissinger and the former Pentagon adviser Richard Perle to his board. He and his wife became significant figures on the London social scene, throwing Alist parties at their house in Cottesmore Gardens, Kensington, West London.
The jury of nine women and three men took twelve days to convict Black on three blatantly fraudulent business deals included in the indictment, as well as obstruction of justice. A total of $6.4 million (£3.2 million) was embezzled from shareholders in the three deals, of which $3.5 million went directly to Black.
In one deal, the money was paid as a bogus “noncompete” fee by a company that was in fact a subsidiary of the newspaper group run by Black, effectively paying himself not to compete with himself.
In the other two deals, Black took a “noncompete” fee even though he never signed a “noncompete” agreement. He was also found guilty of obstruction of justice, having been caught on CCTV carrying 13 boxes of documents out of his Toronto office during multiple investigations in 2005.
Each fraud charge carries a maximum of five years and the obstruction count carries a top term of twenty years. Sentencing will take place on November 30.
Black was allowed to remain free on bail until a hearing on Thursday. But the judge restricted him to the court district of Northern Illinois and confiscated his passport and immigration paper. He told the judge that he planned to go to the Chicago suburb of Wheaton.
Edward Greenspan, his Canadian barrister, said he would appeal. “We came here to face 13 charges in the indictment,” he said. “Conrad Black was acquitted of all the central charges. We vehemently disagree with the government position on sentencing.”
Black was acquitted of the most serious charge of racketeering and of three “perks” charges related to the use of company money for a 60th birthday party for his wife and a flight on the corporate G4 jet to the Pacific island resort of Bora Bora. Jurors found him not guilty of buying a company flat on Park Avenue, New York, for below market price. Three codefendants were each convicted of three counts of fraud.
Given just 30 minutes’ notice of a verdict, Black, a notorious late riser, arrived in court five minutes late, after all his co-accused, in a tan suit with his hair still damp from a shower. He swaggered to the defence table, sitting down with a grimace. He was accompanied by Lady Black, his British-born second wife, and his daughter, Alana. During the first break in the hearing, they rushed to huddle with Black but neither kissed or embraced him.
Black’s lawyers fought to save his beach-front mansion in Palm Beach, Florida, placed on the market last year for $32 million, from forfeiture.
Patrick Fitzgerald, the chief federal prosecutor in Chicago, said that he was very satisfied. “It is very simple: if you are going to take liberties and break the law with other people’s money, there are going to be consequences,” he said.
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Dollars to doughnuts he doesn't serve time. The higer they fly, the further they fall. Revenue Canada will now get him for the taxes due on the money he stole.
GK, Calgary, Canada
Conrad Black is an honorable man. The way he was treated by the American judicial system was dishonorable, base, and frankly wicked. America is a place I no longer wish to visit.
Bill, Toronto, Ontario
Lord Black ruled the world with neo cons like Richar perle. Why doesn't president Bush intervene and reduce his sentence as he did to another neo con (Lebby) two weeks ago?
Kate Fuller, Liverpool, UK
He should have been found guilty of the non-compete against himself only. He stands a very good chance in appeal on all the other counts including the obstruction which is bogus. Sentencing should force him to return the money, pay a hefty fine and give no more time than the 29 months «the rat» was offered.
Pierre, Vancouver, Canada
If this had happened in UK he probably would not even have been charged or prosecuted, let alone found guilty. The City of London is riding high on it's "wild west" reputation for deals where anything goes and regulation is minimal if that.
Private equity firms milk Brown's tax breaks to the limit and the rich few get far richer while more and more struggle.
From the invasion of Iraq, through the upgrading of our nukes, increasing loss of liberty, increased violent crime, unfair voting system, corporate corruption, and much more, we are becoming a "rogue state".
In 10 yrs., Blair (and Brown) have terribly damaged this country's worldwide reputation in the eyes of the ordinary citizens of countries where Britain still was admired and respected.
harlan Leyside, basildon, essex
Yet another reason, including Sarbanes-Oxley and Guantanamo, not to do business in the states.
Pete Balchin, Solicitor, Bristol, uk
Well what a surprise (not!) that he was a friend of Margaret Thatcher, you really can tell the person by the company they keep.
And what was Blair doing making him a Lord at the request of William Hague!?
Kim, London, England
We do not know what was in the boxws, and frankly if I had dangerous files they would never be listed. I suspect tje jury thought the same. Snobbish he lorded over others and liked the Uk with similar people Oxford Wisc, a nice new home.
Campbell Atkinson, Victoria , BC Canada
The comment from Emma H from Canada is nonsense. People who run companies are in positions of trust. They are not permited to steal the assets of the shareholder, which is what Black was convicted of. I can't understand what took the jury so long. He should be joined in prison by Haigh who created him a UK legislator for life and set him over the rest of us in terms of status.
Bob, London, UK
Hope he serves the maximum in jail.
Wish the British justice is as tough
as the Americans' on white-collar crimes.
gs, London, UK
Don't hold your breath! America is a strange old place - terribly self righteous. What is the bet that Black will get acquitted of all charges on appeal? I lay you a bet that he will, because he has been acquitted of all the major charges and the ones that he has been convicted of turn on points of law not evidence alone. So wait and see. I do not know Lord Black nor do I support him, but I know that there is one rule for the rich and another for the poor. If not why is he on bail? Anyone else would have been sent down pending appeal /sentence.
John Papi, Richmond, Surrey, United Kingdom
But if O.J Simpson and Michael Jackson were Not Guilty, why not Conrad Black?
Seems so unlike American justice. I suppose an appeal will be launched and we will be determined in 20 years -like death row case!
Carl Teper, Jerusalem, Israel
He Had it coming to them!
No one is crying very hard
Especially those who knew
them
Carol, Hamilton, Canada
To Emma H., Ottawa, CAN - You bend over backwards to excuse Black's theft of tens of millions of dollars from corporate funds that belonged to shareholders. Black was NOT convicted of 'minor counts'. Nor can he be said to have merely 'dared a little too much.' Fraud is fraud. The obstruction verdict is harsh, but there can be no doubt he entered the Hollinger office and took the documents in direct violation of a court order. The jurors know better than you and I what may have been in those files and why Black was so determined to have them. Question: did you own shares in Hollinger? If so, you suffered poor returns due to Black's diversion of cash flows and bogus fees to himself. CEOs can't rip off shareholders and get away with it. Even if he had been acquitted, he faces hundreds of millions of shareholder lawsuits. In the end, he will be nothing but an ex-con pauper with a big vocabulary. Justice will have prevailed.
H. Angus, Vancouver, BC, Canada
Conrad Black and Barbara Amiel are both highly intelligent and talented people.I have read Amiel's columns and comments for a couple of decades and whilst it was often difficult to agree with her,she was always worth reading.Unfortunately,the girl form Watford's vulgar ostentation,does not sit well with the suffering masses.If Black is really as wealthy as is claimed,the amounts involved here are relatively minor for an apparent billionaire.It really was not worth it.I cannot see that justice will be served to incarcerate this man for perhaps decades in prison.There are far more evil people amongst the obscenely wealthy who destroy lives as opposed to creating an empire as Black did.I do not warm to the man,but I hope his punishment is not disproportionate to the crime and wish him luck.It looks like he is going to need it.
Keith Richard Pirelli, Rio De Janeiro, Brazil
More delightful even than Paris Hilton going to jail.
Eric Love, Brooklyn, New York
Better tell his old chum and defender, Rees-Mogg, what has happened. You'll probably have to wake him from a nap. Those who knew anything of Black's background always expected he would go down, er, up, as in up the river. There are many unpleasant tales, going back to his childhood, including being expelled from Upper Canada Boys School. Recently on the Internet, the story of the couple's selling their New York apartment was published. If you want a hilarious black tale of greed, selfishness, and meanness, just go find it. It includes delightful tidbits about 'Lady' Black taking all the chandeliers the new owners rightly thought they had purchased. By the way, Ms Amiel, has a long and rather unpleasant past in Canada. It should take about a month of Conrad in jail not handing over cheques before she off with someone else. The one blessing at the Telegraph in all this is they no longer have to run her boring, juvenile columns.
JOHN CHUCKMAN, Toronto, Canada
What were the accountants responsible for certifying Hollinger Group's books as a true and accurate record doing over the years? They should have picked up the hand of Conrad Black as being in the till and blown the whistle. I am afraid that the Accountants prefer to avoid nasty figures in their accounts. Cap'n Bob Maxwell got away with financial murder as BossMan of the Mirror Group for many a year. How many other company's shareholders are being done a diservice by those paid to protect their financial interests?
W D Toulman, Walkington, United Kingdom
He will probably go down with Parkinsons and get out whereupon he will be miraculously cured.
Dave Madley, Alicante, Spain
The media is frothing at the mouth with the convictions but it is hard to understand how taking financial records home, during the midst of an investigation, is obstruction. It strikes me as prudent. One would want to read them very carefully, make copies, etc. I do not recall any evidence indicating any missing documents. Unlike Martha Stweart who was fond to have lied to investigators, Mr. Black moved boxes, hardly the same. And they were returned when requested. Unlike Exon and World.com, no transactions were hidden, no jobs were lost, and the law is not defined on how inter-relating companies must act. It seems cowardly for persons, ie journalists, who are too fearful to ever dare much, to celebrate convictions on the most minor counts of persons who may have dared a little too much.
Emma H., Ottawa, CAN
Should we be surprised? What more can you expect from those who think they rule the world (and they do!)
The only difference between Britain and a banana republic is that in Britain, very occasionally, the bad guys get caught.
Let´s see how much time he actually does behind bars!
cerronevado, Mijas, Spain
Should we be surprised? What more can you expect from those who think they rule the world (and they do!)
The only difference between Britain and a banana republic is that in Britain, very occasionally, the bad guys get caught.
Let´s see how much time he actually does behind bars!
cerronevado, m,
Ambition. Ambition. If only he had stayed here in Sherbrooke and served the city with his Sherbrooke Daily Record. But no, the lofty route.
Terry, Sherbrooke, Quebec