Conrad Black Jury Selection Nearly Complete

Jury selection is expected to wrap up by the end of the day Thursday in the Conrad Black trial.

Judge Amy St. Eve has already questioned half of the possible jurors, and has reportedly eliminated a dozen people. In deciding who should stay and who should go, St. Eve asked the attendees questions about their feelings toward Canadians and large corporations.

Some prospective jurors were excused on the basis of their financial or family situation.

Twenty jurors are being sought – 12 chief ones and eight alternates.

There hasn’t been much word yet from the former Hollinger CEO or his lawyers, but that’s expected to change next week when the trial is due to start.

The former media baron has pleaded not guilty to charges of tax evasion, money laundering, wire and mail fraud, racketeering, and obstruction of justice. His wife, Barbara Amiel Black, and daughter Alana accompanied him to court this week.

The trial is expected to last three or four months.

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The Case

Conrad Black:

-Nine counts of mail and wire fraud.

These counts allege the defendants defrauded Hollinger International though “an elaborate scheme” involving non-competition agreement.

-Three separate counts of wire fraud in connection with “a scheme to defraud” Hollinger International and its shareholders by abusing certain company perks.

-One count of money laundering.

-One count of obstruction of justice in connection to the alleged removal of 13 boxes of documents from his office in downtown Toronto

-One violation under the U.S. Racketeer Influenced and Corrupt Organizations Act, also known as RICO

-Two counts of tax fraud.

John (Jack) Boultbee:

-Nine counts of mail and wire fraud.

-Three separate counts of wire fraud in connection with “a scheme to defraud” International and its shareholders by abusing certain company perks.

-Two counts of tax fraud.

Peter Atkinson:

-Six counts of mail and wire fraud.

-Two counts of tax fraud.

Mark Kipnis:

-Nine counts of mail and wire fraud.

-Two counts of tax fraud.

 

Dramatis Personae

Conrad Black:

-Former chairman and CEO of newspaper publisher Hollinger International.

-Gave up Canadian citizenship in 2001 to be named Lord Black of Crossharbour in Britain.

-Now lives in Toronto and is working to regain his Canadian citizenship.

-Known for his larger-than-life persona and lavish tastes.

-Has written books on Franklin Roosevelt and Maurice Duplessis.

-Married columnist Barbara Amiel in 1992.

 

John (Jack) Boultbee:

-Former Hollinger chief financial officer and chartered accountant.

-Charged with mail and wire fraud as well as tax fraud.

-Was pushed out of media company for allegedly taking payments.

-Countersued for wrongful dismissal.

-Businessman and friend William Pugliese, founder of Iamgold Corp., paid his US$1.5-million bail for the Chicago trial.

 

Peter Atkinson:

-Former vice-president and general counsel of Hollinger Inc.

-Joined Hollinger International in 1998.

-Resigned in April 2004 amid allegations he had received improper payments from International.

-Charged with six counts of mail and wire fraud and two counts of tax fraud.

-Paid millions of dollars back and reportedly co-operated with internal investigations.

 

Mark Kipnis:

-Chicago lawyer and accountant

-Resigned from Hollinger in 2003 after a regulatory probe.

-Charged with nine counts of mail and wire fraud and two counts of tax fraud.

 

David Radler:

-Black’s former business partner of more than 30 years.

-Former publisher of the Chicago Sun-Times and chief operating officer of Hollinger International.

-Managed International’s newspaper operations in the U.S. and in parts of Canada.

-Significant Ravelston shareholder.

-Struck a plea bargain with the prosecutors to testify against Black in return for a jail sentence of 29 months and a US$250,000 fine.

 

Eddie Greenspan:

-Black’s lawyer and long-time acquaintance.

-One of Canada’s top criminal defence lawyers.

-Called to the bar in 1970.

-Prominent clients have included former Nova Scotia Premier Gerald Regan and convicted murderer Peter Demeter.

-This will be his first U.S. trial.

 

Eric Sussman:

-Lead prosecutor in four person-team hand-picked by Patrick Fitzgerald, the U.S Attorney for the Northern District of Illinois.

-Has been with the Justice Department for eight years.

-Observers say he has the same zeal for public service as Fitzgerald.

 

Judge Amy St. Eve:

-One of the youngest federal judges in the United States, named to the bench in 2002, at the age of 36.

-Has a reputation as a strong, tough, competent judge.

-Served at the Whitewater Independent Counsel’s Office, helping to secure fraud convictions against three of former president Bill Clinton’s friends Jim Guy Tucker, Jim McDougal and Susan McDougal.

 

Case Chronology

2003

Nov. 17 – Black resigns as CEO of Hollinger International, which owns the London Telegraph, Chicago Sun-Times, Jerusalem Post and other media properties. Hollinger International is put up for sale.

Nov. 19 – U.S. and Canadian regulators disclose investigations after allegations Black and top executives pocketed millions of dollars in unauthorized fees.

Dec. 22 – Black cited his Fifth Amendment right against self-incrimination in refusing to testify to the U.S. Securities and Exchange Commission.

2004

Jan. 16 – Hollinger International launches $200-million-US lawsuit against Hollinger Inc., the Toronto holding company through which Black controls the U.S.-based operating enterprise.

Jan. 18 – Black agrees to sell key newspaper titles, including the Telegraph group, to the Barclay brothers, British twin tycoons for $600 million US.

Jan. 21 – Black forced out as chairman of Hollinger International, replaced by Gordon Paris.

Feb. 13 – Black files $850-million defamation lawsuit against Paris and other Hollinger International directors.

Feb. 26 – Delaware court blocks Black’s attempt to sell the Telegraph to the Barclays.

May 7 – Hollinger International increases claim against Black and others to $1.25 billion US, alleging racketeering.

June 22 – Hollinger International agrees to sell Telegraph to the Barclays for $1.3 billion US.

Sept. 8 – A Regina lawyer launches class-action lawsuits against Black, his wife and associates, seeking at least $4 billion on behalf of shareholders.

Oct. 8 – Hollinger International’s $1.25-billion-US lawsuit against Black and others is dismissed. It is later revised, without the corrupt-organization allegation, to demand $425 million.

Oct. 28 – Black bids to buy out minority shareholders of Hollinger Inc. and take it private; days later, he resigns as the holding company’s CEO and chairman to clear the way for the proposed buyout.

Nov. 15 – SEC files fraud charges against Black and longtime deputy David Radler, accusing them of using Hollinger International as their personal piggy bank.

2005

Feb. 25 – Court documents reveal Black threatened to sue independent directors of Hollinger Inc. if they stall his attempt to privatize the company.

March 18 – Ontario Securities Commission launches proceedings against Black and allies over transactions including Hollinger’s $3.2-billion sale of Canadian newspapers to CanWest Global in 2000.

March 28 – OSC disallows Black’s bid to buy out Hollinger Inc. minority shareholders.

March 29 – Hollinger Inc. sues Black, other former directors and related corporations for $636 million over management fees and non-competition payments.

April 13 – Hollinger Inc. issues notice to Ravelston Corp., the private firm through which Black holds controlling stakes in the Hollinger companies, to vacate downtown Toronto building by May 31 for failing to pay rent.

April 20 – Black and Radler resign from Ravelston, which files for bankruptcy protection and is placed in receivership.

Aug. 18 – Radler, former Hollinger lawyer Mark Kipnis and Toronto-based Ravelston Corp. are indicted on five counts each of mail fraud and two counts of wire fraud. They are accused of cheating shareholders in the United States and Canada, as well as Canadian tax authorities.

Sept. 20 – Radler pleads guilty to mail fraud and agrees to a lighter-than-expected 29-month prison sentence and a $250,000 US fine. He plans to testify against others in the alleged fraud.

Nov. 17 – Black, and former Hollinger directors John Boultbee and Peter Atkinson are charged with fraud and warrants issued for their arrests. Black and Boultbee are charged with eight counts of mail and wire fraud, and Atkinson with six. New charges are laid against Kipnis.

Nov. 30 – Boultbee fails to show up for his arraignment. Is given a few extra days to turn in before extradition begins.

Dec. 1 – Black and Atkinson plead not guilty to fraud charges. Black released on $20 million US bond, can only reside in Canada, Florida or Chicago.

Dec. 7 – U.S. Attorney’s Office warns it may lay new charges; Boultbee pleads not guilty to eight counts of fraud and was released on a $1.5-million-US cash bond.

Dec. 15 – Prosecutors add racketeering and obstruction of justice allegations to Black’s charges.

Dec. 16 – Black pleads not guilty to new charges, trial set for March 2007.

2006

Jan. 11 – Hollinger International sells the bulk of its remaining Canadian papers for $121.7 million.

Jan. 24 – An Ontario Securities Commission hearing against Black and his associates gets pushed back to June 2007.

May 15 – Hollinger Inc. signs a deal to co-operate with the U.S. Attorney’s Office.

Jul. 6 – Hollinger sues Black and his associates for more than $700 million.

Jul. 17 – Hollinger International changes name to Sun-Times Media Group.

Aug. 17 – Prosecutors add tax evasion charges to Black’s indictment.

Aug. 30 – Ontario court freezes some of Black’s assets.

Sept. 26 – Black says he’s using “the normal channels” to regain Canadian citizenship.

Dec. 29 – Black files a claim against Hollinger Inc. seeking nearly $20.6 million plus interest relating to money paid by him to Sun-Times Media Group.

2007

Jan. 16 – Randall Benson steps down as chief restructuring officer for Hollinger Inc., Wesley Voorheis becomes CEO.

Jan. 23 – Judge rules Black and his co-defendants will be tried together.

Feb. 26 – Hollinger Inc. settles all of its disputes with five former directors by paying just under $2 million.

Mar. 5 – Ravelston pleads guilty to one count of fraud.

Mar. 7 – Prosecutors get approval to put “co-conspirators” on the witness stand to tell inside details of Black’s role in the alleged fraud.

Mar. 8 – Hollinger Inc. catches up on years of overdue financial filings, reports deepening losses and saying its future is in doubt.

Mar.14 – Case against Black and associates opens with jury selection in a Chicago courtroom.