In Co-Defendants Bail Request, A Hint At Conrad Black's Appeal Strategy

By: E&P Staff The judge who presided over last year's federal fraud trial of fallen press baron Conrad Black and three co-defendants erred in letting the jury conclude the former Hollinger International executives willfully ignored the improper pocketing of millions from the Chicago Sun-Times parent, one of the those co-defendants is arguing in a request to be freed on bail pending appeal.

In court documents filed this week in U.S. District Court in Chicago, former Hollinger Vice President Peter Atkinson outlines an appeals strategy that is likely to be followed by Black and two other Hollinger executives convicted last summer, former CFO John "Jack" Boultbee and former General Counsel Mark Kipnis. All the defendants have indicated their intention to appeal.

In the motions, first reported by Canadian journalists, including CanWest News Service reporter Allison Hanes, Atkinson's attorneys say they intend to pursue four issues on appeal. They argue that the legal merits of the appeal are sufficient to justify freeing Atkinson on bail while it is pursued.

They appear to be pinning most hopes on the so-called "ostrich" instruction trial Judge Amy J. St. Eve gave to the jury.

Atkinson, a Canadian native like Black and Boultbee, was sentenced in December to 24 months in U.S. prison and three year's probation on his conviction on three counts of fraud revolving around phony non-compete fees in the sale of some community papers by Hollinger, now known as Sun-Times Media Group. He was ordered to report to prison March 3.

Atkinson's lawyer argue that if he must serve time while his appeal is pursued, he could end up in jail longer than his ultimate sentence.

Atkinson is also eligible to ask to serve his time in a Canadian prison, where conditions are considered easier than the U.S. federal system. But forcing him to decide to give up the appeal to serve time near his family in Canada is unfair, the lawyers argue.

Black, who was convicted of three counts of fraud plus an addiitonal count of obstruction of justice, was sentenced to 78 months in jail, a $110,000 fine, and foreifeitures of $6.1 million, the amount a jury in July convicted him and his co-defendants of misappropriating from Hollinger. He was ordered to report to prison March 3. Black, who renounced his Canadian citizenship to accept appointement to the British House of Lords, has asked to be placed in a minimum security facility, a privilege usually denied non-American citizens.