Media Roundup: Salvage Operation

The media reports on the Conrad Black trial are warming up for what, as of now, will be the testimony of the crucial witness for the prosecution - David Radler:

1. From CTV News, an anticipatory report that quotes, at length, trial lawyer Steve Skurka's assessment of what the prosecution needs to hear from David Radler on the stand to salvage their case. There's also an assessment from BNN reporter Amanda Lang, who compares watching the trial to a tennis game: "'The prosecution presents a witness, and it seems as though they've presented a pretty good case and then the defence gets up and eviscerates them...'"

2. The final item of the New York Times' "Looking Ahead" business column is a note on Mr. Radler's testimony.

3. A report by Paul Waldie of the Globe and Mail spells out what Mr. Radler's line of testimony will be, after noting that they need him to salvage their case: "Prosecutors have said that Mr. Radler will tell the jury that the plan was simple. As Hollinger sold off newspapers in the late 1990s, they knew the management fee would have to drop. To make up the difference, the men inserted themselves into non-competition agreements signed as part of the newspaper sales and then pocketed payments associated with those agreements." It also contains a brief bio of the partnership between Mr. Radler and Conrad Black.

4. Canoe Money has a CP report that notes, "Experts say Radler's testimony will start bringing the prosecution's case into sharper focus."

5. The Ottawa Citizen has webbed a report from Andrew Stern (of Reuters) and Mary Vallis (of CanWest News) which concurs with the analysts' consensus by passing along the assessment that Mr. Radler's testimony "will likely make or break the criminal case against Lord Black and three fellow executives." It also notes that the defense has moved to have Mr. Radler's grand-jury testimony ruled inadmissible.

6. Peter Worthington is back on the trial beat after a long hiatus of his own. His latest column, webbed by the Calgary Sun, also concurs with the consensus that Mr. Radler is now the prosecution's salvage witness, and suggests watching for Eddie Greenspan's cross-examination of Mr. Radler. It ends with: "If Black gets off, does the sweetheart plea bargain sentence still hold for Radler? How credible is his evidence? He's lied before, might he lie again?"

7. An article from Theresa Tedesco of the National Post labels Mr. Radler as a "modern-day Brutus" and reports that there is much anticipation amongst the defense team "at the prospect of gruelling cross-examinations" of the prosecution's star witness. It notes that the defense will take two tacks: one, that David Radler is a Benedict Arnold; two, that he ran the U.S. operations. (Much fireworking is, of course, expected once the cross-examination start.)

8. From Rick Westhead of the Toronto Star, a report that starts by noting that Mr. Radler, if he does an especially good job, may wind up serving less than a 29-month sentence, and later notes that there is a precedent for such reduction, as Andrew Fastow got rewarded in such a way. It also quotes lawyer Mark Zauderer, who reviewed the plea agreement that Mr. Radler signed: "'Radler has the ability to put a dagger in Black's heart... The government has done everything it can do to make [testifying] attractive for him.'" It also notes that it's unlikely that Mr. Radler will actually serve more than a year in jail, parole standards being what they are.

9. Janet Whitman of the New York Post has a report that also points out the cruciality of Mr. Radler's testimony. Mr. Black himself is quoted in the article: "'It will be a vigorous cross-examination,' Black told The Post, with a smile."

10. A report aired on the CBC Morning News, with correspondent Havard Gould, describes Radler's appearance as offering a “moment of high drama” once he gets on the stand. Conrad Black and Mr. Radler stuck together at first, but the latter rolled in ’05 when confronted by the U.S. justice department. Mr. Gould's report quotes Peter C. Newman: Mr. Radler “couldn’t stand it” if he was sentenced for a long time. His evidence. Mr. Gould noted, is viewed as “vital,” or "crucial," to the prosecution's case, in large part because Mr. Black’s side has done better than expected. Mr. Radler is expected on the stand this afternoon.

CBC Morning News also had an interview with criminal defense lawyer Terry Campbell, aired at approximately 7:40 AM ET. According to Csr. Campbell, Mr. Radler is important because he has an “insider’s view,” which makes him unique as a prosecution witness. Presumably, he will testify about the relevant conversations he had had with Mr. Black. His testimony results from a plea bargain whose terms imply that the prosecution will seek a sentence of “10 to 14 years” for Mr. Black. The defense will claim that Mr. Radler is giving prejudicial testimony because of his reduced prison sentence – he could have gotten 10-14 years himself. The best-case scenario for the prosecution would be Radler sealing the case shut. He may be believed, or it may be believed that he's singing a tune that's merely getting him out of worse trouble. The testimony may take a full week once it starts. The holes in the prosecution's case case so far have not erased the possibility of fraud, but have shown that it's unlikely that defendants had any intent to defraud.

11. CBC News also has a webbed report on Mr. Radler's expected testimony, in which Mr. Gould is quoted from a report that was broadcast last night. Several experts are also quoted in it.

12. From BBC News, a report which notes that Mr. Radler's job for the prosecution is to prove intent; as specified above, Csr. Campbell had noted that the prosecution has failed to prove its case so far. From the BBC's report: "'Radler is going to have to be extremely specific about the conversations he had with the defendants and how they planned to get away with this,' said Hugh Totten, a Chicago attorney who is following the trial."

13. CityNews' report is entitled "Explosive Moment Reached In Conrad Black Trial." From it: "Radler knows where all the figurative bodies are buried, having worked side by side with Black for decades as they built up his Hollinger newspaper empire.... Prosecutors will paint both men as co-conspirators bent on cheating the company. The defence will attempt to point all the fingers solely at Black's old friend."

14. The Montreal Gazette has reposted a report by Reuters' Andrew Stern. It notes that Csr. Totten "has defended executives and is observing some of the trial in U.S. District Court," before quoting his assessment at length.

15. Amanda Lang was interviewed on BNN about the trial, which was aired at 8:15 AM ET. She said that there's "a couple of key things" that make his testimony "the heart of the case" for both prosecution and defense: how believable he will be; and, if the defense motions asking to strike most of his grand jury testimony for being speculative are successful, how much of his testimony that's relevant will be let in? The defense has filed another motion to keep Mr. Radler's $29 milion settlement with the SEC out of testimony. If Mr. Radler is believed by the jury, then Conrad Black and the other defendants are sunk. He also can destroy the defense' contention that he and Conrad Black were co-chiefs and that Mr. Black had nothing to do with negotiating the individual non-compete agreements; this argument "has not stood up well" anyway. Mr. Radler can also testify that Black agreed to his actions, regardless of how independently he acted. Watching Conrad Black's face during Radler's testimony probably won't reveal much.

16. From Bloomberg, a report by Thom Weidlich and Andrew Harris that sketches out the key points that Mr. Radler is expected to make when testifying under direct examination: "Radler will be the first witness who helped arrange the fees and received them. Prosecutors will try to use his insight as to whether efforts were made to hide the payments to sway the jury.... According to Radler, Black knew money was being stolen from Hollinger and often decided how much was to be taken. He claimed Black helped conceal the alleged scheme from the board." In its background section, it notes that Mr. Black and Mr. Radler are still partners in Horizon and Bradford (although they are not the two sole shareholders of those companies.)

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Mark Steyn's latest entry in his Maclean's trial blog also covers David Radler's imminent appearance on the witness stand. He notes that Mr. Radler has, so far, produced no documentation to prove his "it was obvious..." remarks in his grand jury testimony. An earlier, much longer, entry answers reader criticisms that he has read too much into the impugnment of the testimony of the audit committee members.