CHICAGO (AP) — A federal prosecutor accused media mogul Conrad Black and three former Hollinger International newspaper executives yesterday of systematically stealing $60 million from the company and creating an elaborate but bogus paper trail to hide the theft from shareholders.
“It was stealing, plain and simple,” Assistant U.S. Attorney Julie B. Ruder said as closing arguments got under way at the Canadian-born British lord’s three-month racketeering and fraud trial. She told jurors that it “will be your job to expose this cover story for the lie that it is.”
“We’re not here because somebody made a mistake, we’re not here because somebody forgot to dot the i’s or cross the t’s,” Ms. Ruder said as Mr. Black looked on without any sign of emotion. She said the four defendants “decided on their own to take a slice of the company’s profits.”
As closing arguments began, one juror was missing. It was not clear why, and lawyers declined to discuss the absence. U.S. District Judge Amy J. St. Eve held a long conference with the lawyers before court got under way yesterday.
Mr. Black, 62, and three other former executives of the Hollinger International Inc. newspaper empire are accused of pocketing $60 million that should have gone to the shareholders, largely through the sale of hundreds of Hollinger-owned U.S. and Canadian community newspapers.
Millions of dollars were paid in exchange for promises that Hollinger would not compete with the new owners. “Non-compete” payments are common in the industry, but prosecutors say the money belonged to shareholders.
Also on trial are former Hollinger vice presidents John Boultbee and Peter Y. Atkinson and former corporate counsel Mark Kipnis.
Like Mr. Black, Mr. Boultbee and Mr. Atkinson are Canadians, while Mr. Kipnis is a Chicago lawyer.
Mr. Black, Mr. Boultbee and Mr. Atkinson shared the non-compete payments, which are tax-free in Canada.
Mr. Kipnis is accused of helping to arrange the deals.
Mr. Black and his co-defendants deny they did anything illegal.
Judge St. Eve has set aside this week for closing arguments. Jury deliberations are expected to get under way next week.