Black due in court to face US judge over fraud

Conrad Black was scheduled to appear before a judge in Chicago on Tuesday, to face federal fraud charges, but as the clocked ticked towards the opening of proceedings it was unclear whether the former media mogul would surrender to US authorities.

Lord Black and three other former executives at Hollinger International were last week charged with orchestrating a multi-million dollar fraud at the US-listed newspaper company they once controlled.

Jack Boultbee, one former executive who handled Hollinger’s accounts and who was named on the indictment, is not expected to appear before the judge, according to a person familiar with the situation.

Mr Boultbee’s lawyer is understood to be in negotiations with the US attorney’s office in Chicago over the conditions of his surrender to the US at a later date, in part to ensure that his client will be freed on bail after an agreed appearance and would be able to return to Canada.

A spokesperson for Lord Black on Monday declined to comment on whether he was making similar arrangements, or would remain at his estate in Toronto.

Lord Black has vehemently denied any wrongdoing at Hollinger and his lawyer, Gregory Craig, last week claimed Lord Black would be found innocent “if given a full and fair opportunity to defend himself”.

Mr Craig has indicated that he does not believe US prosecutors have handled his client fairly. The government last month seized $9m in proceeds from the sale of Lord Black’s apartment in New York. Property prosecutors claimed the apartment was sold to Lord Black by Hollinger at a below market value.

The indictment against Lord Black last week indicated that federal authorities were also seeking to forfeit his multi-million dollar mansion in Palm Beach, Florida.

Lord Black’s legal team has not yet laid out its defence strategy, but much of the case is likely to hinge on the testimony of David Radler, another former executive and one-time confidant of Lord Black who has pleaded guilty to fraud.

Separately, Hollinger on Monday announced that six of its directors, including former Illinois governor James Thompson and Richard Perle, a former adviser on US defence, were stepping down from the board.

Lord Black has often said that many of his actions as chief executive, which later came under scrutiny, were blessed by the company’s board.