Conrad Black trial: Gordon Paris is up!

The government called their first witness: Gordon Paris.

Paris was the former investment banker who took over as Hollinger's CEO in November, 2003, after Lord Black resigned amid a flurry of allegations. As CEO, Mr. Paris co-ordinated a massive internal probe at Hollinger that resulted in a 500-page report released in August, 2004. That report labelled Hollinger a "corporate kleptocracy" under Black and has formed the basis for a huge civil suit against Black. Black has denied the allegations and countersued. Paris eventually resigned as CEO.

The government called Paris to the stand to testify that Black was well informed about the financial operations of Hollinger International. Prosecutors plainly wanted to refute any claim that Black was so busy in London running the Hollinger-owned Daily Telegraph and dabbling in politics that he left the nuts and bolts of the company to Radler.

Defense attorney Edward Greenspan sought to portray investment banker Gordon Paris as being just as thoroughly drenched in corporate opulence as Black, who is accused of swindling Hollinger out of $84 million."I'm going to suggest to you that you were making $15,805 a day in '05," Greenspan told Paris, who took command of Hollinger after the company ousted its longtime president and CEO amid shareholder complaints.Greenspan never got an answer to his question because U.S. District Judge Amy J. St. Eve sustained an objection to the question. But he did get Paris to admit that he was paid $511,375 by Hollinger in 2003.

Black's lawyers maintain that nothing he did was illegal and any misdeeds were the fault of his longtime No. 2 man, F. David Radler, who has made a deal with the government and is now its star witness.Paris joined Hollinger International's board in 2003 at Black's request to conduct an investigation of management fees, noncompete payments and other matters that already were raising shareholder concern.One of the biggest shareholders, the investment house of Tweedy, Brown, was demanding such an investigation.Greenspan scored points when Paris, who portrayed himself as highly knowledgeable about the company, described Tweedy, Brown as the second-largest shareholder; the Canadian lawyer then got Paris to admit that another investment house might have been second and Tweedy, Brown third. More on the Conrad Black trial.