Conrad Black guilty on four counts, most seriously obstruction of justice
Conrad Black has been found guilty on four of 13 charges, including mail fraud and obstruction of justice.
He was not guilty of racketeering.
The three counts of mail fraud carry maximum penalties of five years each and fines of up to $250,000. The far more serious charge of obstruction carries a maximum sentence of 20 years and/or a fine of $250,000.
Potentially, Lord Black faces 35 years in prison and a $1-million fine.
The jury which decided the fate of Black and his three co-defendants on criminal fraud charges delivered the verdict shortly after 11:30 a.m. eastern time on Friday.
During the trial the U.S. government alleged Black and three other senior Hollinger International executives — Peter Atkinson, Jack Boutlbee, and Mark Kipnis — misappropriated $60 million US in bonuses disguised as non-compete payments from Hollinger International during the sale of newspaper assets.
Jack Boutlbee was found guilty of three counts of mail fraud.
Peter Atkinson has been found guilty on three counts of mail fraud.
Mark Kipnis has been found guilty on three counts of mail fraud.
The nine women and three men had been deliberating on a total of 42 charges.
"Ladies and gentlemen, thank you for your service," Judge St. Eve said before the jury filed out after delivering their verdict.
Lord Black approached the judge with his lawyers and was placed under oath to waive his right to have forfeiture decided by the jury — meaning the judge will decide on her own any matters related to Black's transfer of property to the court — and answered Judge St. Eve's questions in a low, measured voice.
The following is a full list of the charges, the defendants and — as and when they become available, the jury's verdict on each charge.
THE NON-COMPETES
COUNT ONE: Mail fraud
Defendants were paid non-compete fees without
justification. Relates to non-compete agreements with American Publishing Company and US$2.9-million in cheques related to the agreements.
Black: GUILTY
Boultbee:
Atkinson:
Kipnis:
Maximum penalty: Five years and/or $250,000.
COUNT 2: Mail fraud
Engaged in mail fraud when negotiated the sale of Hollinger Inc. assets.
Kipnis:
Maximum penalty: Five years and/or $250,000.
COUNT 3: Wire fraud
Engaged in wire fraud when negotiated the sale of Hollinger Inc. assets.
Kipnis:
Maximum penalty: Five years and/or $250,000.
COUNT 4: Wire fraud
Engaged in wire fraud when faxing wire transfer instructions.
Kipnis:
Maximum penalty: Five years and/or $250,000.
COUNT 5: Mail fraud
Shipping envelope to David Radler that contained a US$4.3 non-compete payment.
Black: NOT GUILTY
Boultbee:
Atkinson:
Kipnis
Maximum penalty: Five years and/or $250,000.
COUNT 6: Mail fraud
Shipping non-competition agreements.
Black: GUILTY
Boultbee:
Atkinson:
Kipnis:
Maximum penalty: Five years and/or $250,000.
COUNT 7. Mail fraud
Shipping a non-compete payment in the sum of US$600,000.
Black: GUILTY
Boultbee:
Atkinson:
Kipnis:
Maximum penalty: Five years and/or $250,000.
NON-COMPETES INVOLVING CANWEST
COUNT 8. Wire fraud
Depriving Hollinger Inc. of US51.8m following sale of papers to CanWest.
Black: NOT GUILTY
Boultbee:
Atkinson:
Kipnis:
Maximum penalty: Five years and/or $250,000.
COUNT 9. Mail fraud
Shipping of memos referring to non-compete deal.
Black: NOT GUILTY
Boultbee:
Atkinson:
Kipnis:
Maximum penalty: Five years and/or $250,000.
THE LAVISH LIFESTYLE CHARGES
COUNT 10: Wire fraud
Use of company jet to fly to Bora Bora, billing of Ms. Amiel’s birthday party to Hollinger Inc, buying company’s New York apartment at less than market value.
Black: NOT GUILTY
Boultbee:
Maximum penalty: Five years and/or $250,000.
COUNT 11: Wire fraud
Same facts as 10 but fraud occurred when documents about the perks were transmitted to the Securities and Exchange Commission.
Black:
Boultbee:
Maximum penalty: Five years and/or $250,000.
COUNT 12. Wire fraud
Transfer of money in connection with buying apartment.
Black: NOT GUILTY
Boultbee:
Maximum penalty: Five years and/or $250,000.
OTHER CHARGES
COUNT 13: Obstruction
Removal of boxes from Hollinger’s Toronto offices.
Black: GUILTY
Maximum penalty: 20 years and/or $250,000.
COUNT 14. Racketeering
Black alleged to be leader of an “association-in-fact” enterprise that raised money by fraud.
Black: NOT GUILTY
Maximum penalty: 20 years and/or $250,000.
COUNT 15. Tax Fraud
Filing false tax returns.
1999 U.S. federal income tax return understated gross revenue by US$13m.
Black: NOT GUILTY
Boultbee:
Kipnis:
Maximum penalty: 3 years and/or $250,000.
COUNT 16. Filing false tax return
2000 federal income tax return understated gross revenue by US$16m.
Black: NOT GUILTY
Boultbee:
Atkinson:
Kipnis:
Maximum penalty: 3 years and/or $250,000.
March 10 courtroom sketch of Black, Judge. St. Eve and some members of the jury. Sketch by Verna Sadock/Getty Images
http://communities.canada.com/nationalpost/blogs/posted/archive/2007/07/13/black-verdict-expected-today.aspx
