By: E&P Staff
F. David Radler will plead guilty Sept. 15 to charges he fraudulently steered more than $32 million in payments from Hollinger International, according to published reports in Chicago Wednesday.
The Chicago Tribune and Chicago Sun-Times, quoting federal prosecutors, reported that Radler’s arraignment scheduled for Thursday morning had been moved to the later date.
A co-defendant in the wire and mail fraud case, former Hollinger International general counsel Mark Kipnis, will be arraigned Wednesday, prosecutors said. Previous reports indicated he will plead not guilty and be released on $4,500 bond.
Radler, a former Sun-Times publisher and long-time business partner of deposed press baron Conrad Black, is cooperating with the investigation into allegations that he, Black and other key executives improperly collected payments and fees totaling as much as $400 million. Black is widely believed to be the ultimate target of the investigation headed by U.S. Attorney Patrick Fitzgerald.
A Tribune story by staff writer Matt O’Connor quoted Assistant U.S. Atty. Eric Sussman as saying Radler’s guilty plea has been scheduled for Sept. 15 in U.S. District Judge Amy St. Eve’s courtroom. He said Radler would likely be released on $500,000 after the plea.
The third defendant in the fraud case is Ravelston Corp., the company Black used in a complex corporate structure to control Hollinger International, which owns the Sun-Times and dozens of other Chicago-area papers. Ravelston, which once controlled papers on three continents, is in receivership in a Canadian court.