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Home / Business / Companies / Media and marketing

Fraud accused still living life of a baron

By Stephen Foley
Independent·
18 Mar, 2007 05:00 PM3 mins to read

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Conrad Black

Conrad Black

KEY POINTS:

On the eve of the opening statements in his trial for fraud, racketeering and obstruction of justice, it has emerged that Conrad Black is making few concessions to a more modest, jury-friendly lifestyle.

He and his wife are staying at Chicago's most opulent hotel for the duration of his trial in the city. The fallen press baron, who has had many of his assets frozen by the US courts and been required to put up US$21 million ($30 million) bail, is holed up with his wife, Barbara Amiel-Black, at the Ritz-Carlton Hotel in the heart of the luxury shopping district.

The hotel boasts some of the most sumptuously furnished guest suites in Chicago and a "Premier Level" of oversize rooms and suites whose long-term users reportedly include Oprah Winfrey.

Guests "enter an enclave of refreshing beauty, timeless elegance, and unparalleled personal attention", the hotel's brochure claims.

The couple checked in last week under an assumed name, and are keeping a low profile. However, the hotel was accepting parcels addressed to Lord Black.

Lady Black accompanied her husband to court for jury selection last week, and the couple have been joined in Chicago by daughter Alana Black, from his first marriage.

One businessman, a finance industry executive from New York who was staying at the Ritz-Carlton for business meetings in Chicago, said it was unrealistic to expect Black to suddenly don sackcloth and ashes. "Where do you expect him to stay? In a Holiday Inn or something?"

Meanwhile, David Radler, who was deputy chairman and chief operating officer of Black's Hollinger International, has agreed to pay £14.8 million to settle civil fraud charges. The Securities and Exchange Commission, which accused Black and Radler of looting the company of £40 million, said the fine was one of the steepest it had imposed in recent years on an individual.

Black's media empire gave him access to the salons of the rich, powerful and famous in London, Toronto and New York, and he once owned more than 600 newspapers.

But he is accused of diverting US$84 million from the coffers of the publicly quoted company he controlled, Hollinger International, to pay for the lavish lifestyle he and his wife enjoyed. He faces 14 counts of fraud, racketeering and obstruction of justice.

His lawyers are continuing their strategy of harrying the prosecution on every legal point, and spent Friday trying to edit slides that prosecutors plan to show jurors as part of their opening arguments.

The diagrams explain the complex structure of Black's media empire and illustrate the roles of key players, including Radler, who has agreed to a plea deal that will see him give evidence against his old boss.

- INDEPENDENT

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