By: E&P Staff Conrad Black is suing the U.S. government for the return of $8.9 million seized from the sale of his Manhattan co-op, but he is also trying to persuade the federal prosecutor in Illinois to at least postpone criminal charges related to alleged fraud at Hollinger International, the National Post reported over the weekend.
The Toronto-based paper, created by Black in his heyday as a newspaper mogul, reported that Black has indicated he is willing to extend the statute of limitation on those alleged crimes to "prevent the law enforcement agency from rushing to judgment." It is widely expected that the U.S. Attorney's Office in Illinois will seek criminal charges against former Hollinger Chairman and CEO Black, perhaps as early as the end of this month.
"In a letter to Patrick Fitzgerald, the U.S. Attorney for the Northern District of Illinois two weeks ago, Lord Black offered to waive the looming statute of limitations attached to some of the transactions under scrutiny by the Justice Department and the grand jury," reported Theresa Tedesco and Jonathan Ratner of the Financial Post, the business section of the National Post. (Black was named to a British peerage several years ago and has the title Lord Black of Crossharbour.)
Quoting unnamed sources, the Post reported that Black is prepared to extend the statute of limitation "several years."
The statute of limitation is looming on one key alleged episode of wrongdoing that was among the allegedly improper transactions included in the indictment last summer of Black's long-time lieutenant, former Chicago Sun-Times Publisher F. David Radler. Radler pleaded guilty to a single count of wire fraud in exchange for a reduced sentence and promise to testify in the continuing investigation of alleged looting by former Hollinger International executives.
The National Post reported Fitzgerald is concerned that the statute of limitation might run out on the November 2000 sale of dozens of former Hollinger papers to Community Newspapers Holdings Inc. (CNHI). According to the federal indictment against Radler, former Hollinger General Counsel Mark Kipnis and the Toronto-based holding company Ravelston Corp., four executives -- including an unnamed "chairman" -- were wired so-called "non-compete" payments totaling $9.5 million on Nov. 21, 2000. The government contends those non-compete payments were fraudulent self-dealing, and part of a scheme to divert money from Hollinger's sell-off of community papers at the time.
According to the Post, Fitzgerald has not responded to Black's letter.
The office declined to comment to the National Post, the paper reported. Randall Samborn, the spokesperson for Patrick Fitzgerald, declined to comment on the report when reached by E&P Monday.
Extending the statute of limitations also gives Black time to try to recover the millions seized by FBI agents at the closing of his Park Avenue apartment. Black, according to the paper, intended to use that money to help pay the massive legal bills he faces in the many lawsuits against him, and initiated by him over the alleged extensive looting of Hollinger International, publisher of the Chicago Sun-Times and about 100 Chicago-area dailies and community papers.
The government contends Black gained the apartment improperly through Hollinger, and that sales proceeds are the result of fraud.
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