Court Lifts Freeze On Radler's Assets

By: E&P Staff A British Columbia Supreme Court justice has lifted a temporary freeze on the assets of admitted mail fraud felon and former Conrad Black lieutenant F. David Radler.

Hollinger Inc., which obtained the so-called "Mareva" injunction last month for a worldwide freeze on Radler's spending, said in a statement Wednesday that it is considering an appeal.

Hollinger argues that Radler, who lives and runs his newspaper business from Vancouver, B.C., may try to dissipate his assets before the conclusion of a lawsuit in Ontario accusing him, Black and others of scheming to transfer newspapers from the Toronto-based Hollinger Inc. to Hollinger International, the Chicago newspaper company that is now known as Sun-Times Media Group.

In an agreement with U.S. prosecutors, Radler has pleaded guilty to a single count of mail fraud stemming from the alleged widespread plundering of Hollinger International when it was controlled by Black. Black and other International executives have been indicted in Chicago on federal criminal charges of racketeering, fraud and income tax evasion. All have pleaded not guilty, and are scheduled to go to trial next March.

B.C. Supreme Court Justice Catherine Wedge said Inc. had failed to make its case for the freeze. According to an account of her decision Tuesday in a Globe and Mail article by reporter Shannon Kari, Wedge said the Inc. affidavit filed in support of the freeze was "marred by argument, speculation and invective."

Wedge noted in her decision that a Mareva injunction is "sweeping and highly intrusive in its terms." Under the temporary injunction, Radler's spending was limited to C$25,000 (US$22,000) a month, and he was prohibited from transferring the ownership of personal and business assets.

Wedge also noted that Radler is under close scrutiny as a result of his plea agreement with U.S. prosecutors. He has made restitution on the $7 million in illegal non-compete payments covered by his mail fraud conviction. He has also been sentenced to 29 months of imprisonment, which he will serve after his expected testimony against Black and others. The prison sentence likely will be served in Radler's native Canada.

Inc. obtained a Mareva injunction on the assets of Black in September, but later reached an agreement of undisclosed terms that apparently eases many spending and asset transfer restrictions.

In a statement, Inc. said the justice had issued a "two-week limited injunction" at its request to give time for a possible appeal to the British Columbia Court of Appeal.