CHICAGO — He was once a media mogul who socialized with prime ministers, presidents and statesmen. Now Conrad Black is a convicted felon facing as much as 20 years in prison for fraud and obstruction of justice.
Lord Black sat sternly as Judge Amy St. Eve read the verdict form by count yesterday.
The jury of nine women and three men found him guilty of three counts of mail fraud and one count of obstruction of justice.
Three other former executives of Hollinger International Inc., John Boultbee, Peter Atkinson and Mark Kipnis, were found guilty of three mail-fraud charges.
Conrad Black has been found guilty on four counts, including obstruction and three counts of mail fraud; the obstruction charge carries a maximum penalty of 20 years in jail and a $250,000 fine. (Reuters)
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It could have been far worse for Lord Black.
Juror Tina Kadisak told The Globe and Mail that up to the very end of deliberations, a majority of jurors wanted to convict Lord Black and the others on at least one more fraud count. But in the end, they were persuaded by three holdouts to enter a not guilty verdict. Ms. Kadisak added that they were also undecided on charges of racketeering and tax evasion, but finally opted for not guilty verdicts after 12 days of tense deliberations.
The verdicts ended a four-month trial and a criminal investigation that has gone on for more than two years. The conviction will only deepen Lord Black's already sizable legal troubles.
His assets have been frozen under an agreement with one of his former companies, Hollinger Inc., he faces a host of civil suits, and stock regulators in Canada and the United States have legal action under way.
Lord Black showed no emotion as he left the court. During a break in the hearing he huddled with his wife Barbara Amiel and his daughter Alana and fielded calls on a cellphone.
Once the verdicts were entered, lead prosecutor Eric Sussman asked Judge St. Eve to revoke Lord Black's bail and send him to prison pending a sentencing hearing slated for Nov. 30. The three other defendants had their bail extended.
Mr. Sussman argued that Lord Black was a flight risk, noting that he faces between 15 and 20 years in prison. He also said that Lord Black had already violated the terms of his existing $21-million (U.S.) bail, secured against his mansion in Palm Beach, Fla., by failing to meet financial commitments on the house.
Judge St. Eve deferred the bail issue until Thursday to give Lord Black's lawyers a chance to prepare a response. But she ordered Lord Black to hand over his passport and remain in the Chicago area until that hearing. She also asked him directly if he would appear at the sentencing hearing. "Absolutely," Lord Black said firmly.
Lord Black then pulled out his passport, gave it to the judge and left the court with his family. He had nothing to say to a horde of reporters as he walked slowly out of he courthouse holding Lady Black's hand.
Edward Greenspan, a Toronto lawyer representing Lord Black, said an appeal was already in the works.
"Obviously we're disappointed; we came here to be acquitted of everything," Mr. Greenspan said afterward. "But we are not disheartened."
He declined to comment on Lord Black's reaction to the verdict other than to say: "He's doing okay."
Mr. Greenspan pointed out that Lord Black had been acquitted of the bulk of the charges against him. "We came here to face 13 counts in an indictment. Conrad Black has been acquitted of all the central charges," he said.
"There are viable legal issues. We vehemently disagree with [Mr. Sussman's] position on sentencing. We believe, based on the convictions of the charges here, the sentences for these types of offences are far less than what [Mr. Sussman] suggests."
Patrick Fitzgerald, the United States Attorney for the Chicago area, told reporters the conviction sends a powerful message to company officers and directors.
"We're gratified by the jury's verdict," Mr. Fitzgerald told reporters, as Mr. Sussman and his team of three prosecutors stood nearby. "We think the verdict vindicates the serious public interest in making sure that when insiders in a corporation deal with money entrusted to them by the shareholders, that they not engage in self-dealing and that they not break the law to benefit themselves instead of the shareholders."
Mr. Fitzgerald declined to comment on several statements Lord Black has made criticizing prosecutors and vowing to be completely vindicated. He also played down suggestions the prosecution failed to win convictions on the major charges against Lord Black, including racketeering.
"I don't think anyone in this room would want to be any one of those defendants convicted of those counts," he said. Lord Black "was charged. He's now a convicted felon, convicted of very serious fraud charges and convicted of obstructing justice."
He also declined to comment on the deal prosecutors struck with David Radler, Lord Black's former right-hand man at Hollinger. Mr. Radler pleaded guilty to one fraud charge and faces up to 29 months in prison. He testified for the prosecution, but one juror said his testimony was not critical to the deliberations inside the jury room.
"We entered into a deal. We abided by that deal and we will let the record speak for itself," the juror said.
Hugh Totten, a Chicago lawyer who has followed the case, said he found the verdicts somewhat surprising.
"I think this jury verdict was actually a product of common sense," he said.
He noted that prosecutors started their case by claiming Lord Black and the others stole $60-million (U.S.), but ended up with convictions on far less money, as low as $3-million in the case of Lord Black. That could be a big factor in sentencing, Mr. Totten said.
Depending on how the judge views the guilty verdicts on each count, sentencing could be far less than 10 years if the judge determines only a few million dollars was at stake.
"If you are looking at just a couple of million dollars, that will really dramatically reduce, under the guidelines, what these guys are facing," he said.
Stephen Komie, another Chicago lawyer, agreed and noted that sentences are determined by good deeds and the amount of money at issue in the conviction.
He added that the conviction was bittersweet for Lord Black - bitter in that he was convicted of anything, sweet in that he was found not guilty of the serious offence of racketeering. "Any sentence he got under the [racketeering] would be a life sentence for a man his age," he said.
Mr. Komie said he would not give Lord Black's lawyers much of a chance on appeal. The appeal courts have been stacked with Republican judges who are very tough on crime, he noted. "I wouldn't bet on him winning," he said.
Mr. Komie added: "His life is over as he knows it."
| Charge | Black | Boultbee | Atkinson | Kipnis |
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| Count 1 Mail Fraud |
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| Count 2 Mail Fraud |
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| Count 3 Wire Fraud |
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| Count 4 Wire Fraud |
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| Count 5 Mail Fraud |
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| Count 6 Mail Fraud |
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| Count 7 Mail Fraud |
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| Count 8 Wire Fraud |
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| Count 9 Mail Fraud |
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| Count 10 Wire Fraud |
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| Count 11 Wire Fraud |
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| Count 12 Wire Fraud |
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| Count 13 Obstruction of Justice |
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| Count 14 Racketeering |
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| Count 15 Tax Fraud |
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| Count 16 Tax Fraud |
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