Monday, March 12, 2007

Players in the Conrad Black Trial


Meet the prosecution team:
The prosecution team of the Conrad Black fraud trial, (L-R) Edward Siskel, Julie Ruder, Jeffrey Cramer and Eric Sussman pose outside of the Dirksen Federal Building in Chicago March 6, 2007.
On Wednesday, former press baron Conrad Black, 62, begins the fight of his life -- a fraud trial in which he stands accused of helping to steal $84 million from the company that owns the Chicago Sun-Times.

If convicted of taking company money while he was chief executive, Black could spend 20 years in prison and pay more than $7 million in fines. Black has declared his innocence, called the charges against him an "unholy onslaught," and vowed to seek libel suits against his accusers.

The trial is expected to last three to four months.

If Black is acquitted, he and others still face a $542 million lawsuit by Sun-Times Media Group.

Defendant: Peter Atkinson

Atkinson, 59, is a Canadian attorney from the Toronto area. Atkinson was vice president and general counsel of Hollinger Inc. and executive vice president of Hollinger International. He also owned about 1 percent of Ravelston.

Atkinson's main duties at International were to oversee legal matters, and he is charged with stealing from the company. According to the government, as it became clear International was going to sell off its newspapers, Atkinson, Black, Radler and Boultbee often discussed how they felt they deserved to get some money from the company they had worked so hard to build, which was now disappearing.

Defendant: Jack Boultbee
Boultbee, 63, an accountant, is accused of illegally helping to divert $84 million from the company that owns the Sun-Times. Boultbee helped set up agreements with companies that bought Hollinger International assets and that paid Black not to compete against the new owners. The prosecution claims the non-compete payments were illegally directed to entities controlled by Black, though the money rightfully belonged to shareholders of Hollinger International. Boultbee allegedly "was the architect of much of the tax strategy" that inspired the payments, according to the indictment.

The government also claims Boultbee helped Black abuse corporate perks by facilitating the purchase of a New York corporate apartment below market prices.

Defendant: Mark Kipnis

Kipnis, 60, is an Illinois attorney with an office in Elgin. Formerly with Holleb & Coff, Kipnis joined Hollinger International in 1998 as corporate counsel.

Kipnis was in charge of documenting and closing the purchases and sales of newspapers by International, and is accused of facilitating the misdirection of millions in non- compete payments to companies controlled by Radler and Black.

The defense: Edward Genson

Edward Genson, 65, Black's Chicago lawyer, is known for defending accused mobsters and disgraced politicians. A lawyer with a theatrical style, Genson recently represented lobbyist Larry Warner, convicted along with former Gov. George Ryan of racketeering and fraud. Genson also defended Ryan aide Scott Fawell, convicted on corruption charges.

The defense: Edward Greenspan

Edward Greenspan, 63, Toronto attorney for Conrad Black, has defended some of Canada's most controversial and high-profile defendants, including Nova Scotia Premier Gerald Regan; theater magnate Garth Drabinsky, and a young mother accused of throwing her baby over Niagara Falls, according to a bio posted by the University of Ottawa. He also acted in a 2001 case in which the Canadian Supreme Court ruled the death penalty unconstitutional.

The prosecutors

Lead prosecutor Eric Sussman, 37, won convictions of Gangster Disciples leaders and a former Chicago Police detective who ran a jewelry theft ring.

Also representing the government are:
• • Jeffrey Cramer, 41, who worked white collar fraud cases in New York. Cramer will open for the government.
• • Julie Ruder, 34, was part of the team that convicted Mayor Daley's patronage chief, Robert Sorich.
• • Edward Siskel, 34, was prosecutor in the case of accused serial bank robber and national fugitive Randy Rencher. He is Gene Siskel's nephew.


The companies

Key to the case are the relationships among the defendants, Chicago Sun-Times owner Hollinger International -- now called Sun-Times Media Group -- and the companies that controlled it.

The charges

Here's what the government claims: Intertec Publishing Corp. paid $75 million for International newspapers, and $2 million from the sale went to Inc. for "non-competition" agreements, which ended up at Hollinger Inc. and in the pockets of the defendants.


Potential witness: James Thompson
The former Illinois governor chaired Hollinger's audit committee while Black was chairman and CEO. Black was ousted over allegations he took improper payments, and angry shareholders sued the company, charging the board with failing to figure out the schemes.
More on the story.


Jury selection starts on March 14. Stay tuned.

2 comments:

airJackie said...

I'll be following the Black trial by reading the Chicago Suntimes on line. Yes I know this case is important to Fitz and I'd like to follow his work. I do miss his blog and Randall but thanks SPB it helps to come on your blog site to get up dates and make comments.

SP Biloxi said...

Jackie,

Chicsgo Native has been giving me insight into the trial and some newspapers that will be covering the trial. There is a reporter for a newspaper in the area that will be covering the trial from beginning to end. So stay tuned.