Two Former Hollinger Executives Facing Fraud Charges

by Glen Shapiro, LawAndTax-News.com, New York

22 August 2005

Two former executives from disgraced newspaper tycoon Conrad Black's media empire have been charged with fraud, it emerged last week.

Former president and chief operating officer of Hollinger International David Radler and Hollinger in-house counsel Mark Kipnis stand accused of diverting $32 million in fees. Ravelston Corp, a now insolvent holding company owned by Lord Black is also implicated in the case.

According to prosecutors, the two men were paid the $32 million in bonuses, disguised as non-compete fees in order to evade Canadian taxes on the amount and hoodwink shareholders.

Speaking to Reuters regarding the case, the US Attorney in Chicago, Patrick Fitzgerald explained that:

"Shareholders of public companies have the right to expect that their money will be managed properly by officers and directors. And they have a right to expect that payments to insiders are being reviewed, not hidden from their view."

"Sadly, today's indictment charges that the insiders at Hollinger - whose job it was to safeguard the shareholders - made it their job to steal and conceal."

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