Conrad Black Trying to Block Ravelston Plea in Criminal Case

By: Mark Fitzgerald Conrad Black is appealing a Canadian judge's ruling that Ravelston Corp., the bankrupt holding company he once used to control a newspaper empire, can enter a plea to U.S. fraud charges, a prosecutor told a federal court judge in Chicago Wednesday.

U.S. District Court Judge Amy St. Eve had set next Monday as the date to arraign Ravelston on charges the closely held firm participated in a scheme to fraudulently divert money from Hollinger International, which publishes the Chicago Sun-Times and dozens of other papers.

F. David Radler, the former Hollinger COO and Sun-Times publisher, has pleaded guilty to a single charge in the case in exchange for a reduced prison sentence and a pledge to cooperate with a continuing investigation that is widely believed to center on Black. A third defendant, former Hollinger International General Counsel Mark Kipnis, has pleaded not guilty.

Assistant U.S. Attorney Eric Sussman said at a status hearing Wednesday that more time may be needed to arrange for Ravelston's plea.

On Tuesday, Ontario Superior Court Judge James Farley gave permission for Ravelston's receiver, RSM Richter, to plead not guilty to the charges. That plea is also supported by Hollinger International and Hollinger Inc., another holding company Black used to control the newspapers.

Black has been ousted as chairman of both companies, and is being sued by Hollinger International and the U.S. Securities and Exchange Commission for allegedly looting the firm of hundreds of millions in improper fees and contracts.

A hearing on whether the Ontario judge's ruling can be stayed will be held Friday, Sussman told the U.S. court.

At this week's hearing in Canada, one of Black's attorneys, Edward Greenspan, argued that entering a plea would be "reckless, foolish and totally unnecessary" because U.S. courts do not have jurisdiction, according to a Globe and Mail article Tuesday by Paul Waldie. Ravelston, they noted, has no operations in the U.S.

RSM Richter attorneys counter that fighting the arraignment could be expensive, and may be futile since U.S. prosecutors could argue that Ravelston's participation in the civil suits involving Black and Hollinger means the company has recognized jurisdiction.

At the time the indictments were handed up, the U.S. attorney said Ravelston would be considered a "fugitive of justice" if it did not appear for arraignment.