(Hollinger/Neo-Con - Lord Conrad) Black's aide accuses him of fabricating deals worth millions

Source: The Independent

Lord Black of Crossharbour and his top lieutenant decided among themselves to skim millions of dollars from business deals at the peer's former media empire, a court heard.

David Radler, Lord Black's right-hand man for more than 30 years, told a jury that many of the payments were kept secret to avoid "questioning" from other board members at the company, Hollinger International.

In a detailed and assured performance on the witness stand, Radler explained how the pair plucked nine and ten-figure numbers out of the air during a series of telephone conversations in 2000, which would be their cut of bogus "non-compete" clauses written into deals to sell Hollinger International newspapers. Such clauses prevent companies setting up rivals to the company to which they have just sold an asset.

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The prosecution alleges that Lord Black defrauded the outside shareholders in Hollinger International, which owned The Daily Telegraph, by diverting funds from Hollinger International and abusing expenses to sustain a lavish lifestyle among the rich and famous socialites of London, Toronto and New York. On trial with three other former executives, he faces charges ranging from tax fraud, to obstruction of justice and racketeering.

Read more: http://news.independent.co.uk/world/americas/article2524429.ece

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Will Radler ever talk about Richard Perle?

Longtime Partner at Hollinger Testifies He and Black Conspired to Divert Millions
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By RICHARD SIKLOS
Published: May 9, 2007
CHICAGO, May 8 — Conrad M. Black’s longtime business partner, F. David Radler, testified Tuesday at Mr. Black’s criminal fraud trial that the two men conspired to divert millions of dollars of payments for assets of the newspaper company Hollinger International.

Federal prosecutors say that the diversions, which went to a Canadian company controlled by Mr. Black, defrauded shareholders of Hollinger International, which is based in Chicago, out of more than $60 million.

Mr. Radler, who has pleaded guilty to a single fraud count and is testifying as a crucial prosecution witness, said that he kept both Hollinger International’s audit committee and its board in the dark about the distribution of so-called noncompete payments, collected as part of the sale of Hollinger International newspapers.

In some cases, he said, the independent directors and audit committee members were simply not told that he and Mr. Black had unilaterally decided to insert their names and those of three other co-defendants in several transactions and to determine how much money they would receive.

more:http://www.nytimes.com/2007/05/09/business/09black.html?ref=business