Conrad Black Leaves Hollinger Board, Faces Continuing Investigation

Back in March The Daily Caveat wrote about the continuing troubles of newspaper man Conrad Black. Black and other Hollinger executives (including Bush politico Richard Perle) are facing potential SEC disciplinary action as well as possible Federal charges over their alleged looting of some $400 million from the company.

More recently Black was in trouble for looting of a different kind, when security cameras showed him leaving his Toronto offices with several boxes of papers. Black had been previously barred by an Ontario court from removing or disposing of any materials without the permission of a court-appointed inspector. Black later returned the documents, claiming confusion over whether personal effects were included in the court's document removal ban.

Black's troubles continued last week when the Chicago Sun Times reported that Black and his wife has both now departed the Hollinger board of directors (although Black still maintains his voting control of Hollinger International via a pair of Canadian holding companies):

A spokeswoman confirmed that the two resignations reduce board membership at Hollinger to nine, but she declined to comment further.

The reason for Black's resignation wasn't immediately clear, although it came one day after the Canadian-born investor was dealt a legal setback in a Hollinger-related court case under way in Toronto.

Black faces several civil lawsuits, and is the subject of a federal criminal investigation, all in connection with a scandal that began to emerge in 2003.

At that time, Black was chairman and chief executive of Hollinger International. After an internal investigation turned up evidence suggesting Black and investing partner F. David Radler had been defrauding the company, Hollinger International's board forced Black out of the top job. The ousted executive later resigned as board chairman but remained a director.

The board later filed a lawsuit against Black and Radler, alleging they misappropriated about $400 million through various schemes.

Black, a Canadian (who later renounced his citizenship to become a British Lord), is also still facing questions from government investigators in his home country where an accounting firm has recently been tapped to review his financial affairs.

Full article at the Chicago Sun Times.

-- MDT