PAUL WALDIE
CHICAGO — From Friday's Globe and Mail Published on Thursday, Jul. 19, 2007 11:00PM EDT Last updated on Friday, Apr. 03, 2009 10:06AM EDT
Conrad Black won't be going to jail any time soon, but he can't travel to Canada just yet because the judge overseeing his case is worried he won't come back.
During a hearing Thursday, Judge Amy St. Eve rejected a request by prosecutors to revoke Lord Black's bail immediately and send him to jail pending a sentencing hearing on Nov. 30. In a court filing, prosecutors said Lord Black faces between 24 and 30 years in prison.
The judge, however, hung on to Lord Black's passport and confined him to the Chicago area and the area around his home in Palm Beach, Fla. Those restrictions will remain in place until Aug. 1, when Lord Black's lawyers must provide more information about his finances and offer greater assurances he will not fight extradition if allowed to leave the United States.
Judge St. Eve said she was not concerned Lord Black would hide in Canada. But she said she was concerned he would refuse to return to the United States. "What the government and my concern is that Mr. Black would decide to fight coming back," she said.
The judge indicated she based her concerns on comments Lord Black has made throughout the trial and since the jury convicted him of fraud and obstruction of justice last Friday. Lord Black has told The Globe and Mail and other journalists in recent days that he will continue his "long war" against the charges and he said "any conviction is unsatisfactory."
Prosecutor Eric Sussman noted the comments during Thursday's hearing, saying that Lord Black has criticized the verdict and shown no remorse for his conduct.
"There is nothing to suggest Mr. Black wouldn't maintain that position in Canada," Mr. Sussman said. He urged the judge to order Lord Black to remain in the United States.
Edward Greenspan, a Toronto lawyer representing Lord Black, proposed that Lord Black turn over his passport to the Canada Border Services Agency when he returns to Toronto. He also said Lord Black was prepared to file affidavits in a Canadian court and with federal justice officials waiving his rights under the extradition process.
He also said that if Lord Black tried to fight extradition, he would have a tough time because he is not a Canadian citizen. Lord Black is living in Canada under a Temporary Resident Permit that expires on Nov. 27, Mr. Greenspan said. He has been told the permit will be extended.
Mr. Greenspan told the judge that a phone call from Mr. Sussman would be enough to have Lord Black arrested and returned to the U.S. within a week.
Mr. Sussman scoffed at that suggestion and pointed out that it took prosecutors months to get documents from Canada for the trial. "The notion that I could make a phone call to Canada and get anything other than a pizza is ridiculous," he said. "We have not received records we asked for a year ago."
Judge St. Eve told Mr. Greenspan to provide her with more information about how Canadian border guards could seize Lord Black's passport.
The judge also said she wanted details about whether Lord Black could turn over more financial assets as an extra bail condition.
Lord Black's existing bail, which dates back to when he was charged in 2005, has been set at $21-million (U.S.). It is secured to his home in Palm Beach and $8.5-million in cash prosecutors seized when Lord Black sold his New York apartment in 2005.
Mr. Sussman said Lord Black has already violated the terms of his bail by failing to keep up payments on a $10-million mortgage on the Palm Beach house. The loan is in default and carries an interest rate of 26.5 per cent, according to court filings. Lord Black promised to pay the mortgage as part of his bail, Mr. Sussman told the court. "That was a lie. … Mr. Black's word is not worth, literally, the paper it is written on."
Mr. Sussman also said Lord Black is supposed to receive a $7-million payment next week as part of the deal involving a Canadian newspaper company he co-owns with former partner David Radler. Mr. Sussman said Lord Black had not told the court about the payment.
Edward Genson, a Chicago lawyer representing Lord Black, rejected Mr. Sussman's allegations and said no one lied about the mortgage. He said Mr. Sussman's calculations are wrong and Lord Black only recently found out about the $7-million deal.
Lord Black sat impassively throughout the hearing and appeared nonplussed by the events. Afterward he autographed a copy of his recent book for an admiring spectator and chatted on his cellphone.
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