Thursday, July 19, 2007

The Verdict: Conrad Black and Canada

The entire episode of tonight's installment of The Verdict was devoted to discussing the implications of Judge St. Eve’s decision to let Conrad stay out of jail until his sentencing, provided that he stays in the Northern District of Illinois or the state of Florida, and to revisit the amount of the bail and the return-to-Canada issue on August 1st.

The first guest was Joy Malbon, who reported on the hearing and the outcome. She noted that he didn’t get treated the same as his co-defendants, but he seems happy with the results. The asset itemization, in preparation for the August 1st hearing, may lead to Conrad being allowed to return to Canada. She also said that the prosecution had put up a real fight.

Next were Canadian immigration lawyers Richard Kurland and former prosecutor Jacob Frenkel. Csr. Kurland said that he was glad that Conrad will not be free to return to Canada at this time. The Minister of Citizenship and Immigration may cancel the temporary resident permit; if she doesn’t, then a message will be indirectly sent to Judge St. Eve. Csr. Frenkel noted that the prosecution basically lost this round. He also spelled out what would happen if Conrad ducked out: a serious chase, which may not be worth it to Lord Black. Csr. Kurland added that Canada might not take the risk of offending the Americans. Csr. Frenkel added that this point makes Canada a poor risk as a flight destination; a better risk would be a country headed up by a dictator that’s not friendly with the U.S. The judge is trying to find the optimal amount that would guarantee that Conrad will show up. Part of Csr. Kurland’s observations made reference to Lord Black giving up his Canadian citizenship. He also noted that there was a material change in the circumstances, which both gives grounds for a revocation of the temporary resident permit and for a serious think-over come renewal time. (For Conrad, it’s November 27th.) Csr. Frenkel noted that Judge St. Eve has “extended a real courtesy” to Conrad by not increasing the bond today.

The next two guests, discussing the asset search launched by the government, were Paul Waldie and Al Rosen, a forensic accountant. Mr. Waldie said that we don’t know how much money Conrad has, but it probably isn’t that much. Mr. Rosen mentioned some plausible destination for any hidden assets, such as the Channel Islands, Switzerland, or the Turks and Caicos islands. Mr. Waldie mentioned two offshore companies already known, both set up for tax reasons, after saying that he wouldn’t be surprised if some hidden assets are uncovered. Conrad is likely to have set some money aside for his family, according to Mr. Waldie; Mr. Rosen concurred. He also added that there’s a time limit on such searches: in a civil case, the time-length of the search cannot extend beyond the timeframe of actions mentioned in the lawsuit. Both said that there are legal obstacles to seizing any found assets, especially for kids’ trusts. Ms. Todd then shifted the subject shifted to legal fees. With regard to Hollinger International reclaiming the fees advanced to Lord Black for his defense, Mr. Waldie noted that the company doesn’t have much of a leg to stand on as of now, because an appeal is pending. He ended by noting that there have been many a slip ‘tween the bill and the payment in cases like this. The shareholders of Hollinger Int’l are likely to get nothing back

The next segment dealt with David Radler’s attempt to rebuild his fortune. The two guests that were on to discuss it were Joan Crockett and Matthew McClearn. Ms. Crockett said that Mr. Radler is an inveterate dealmaker, and is money-driven. Mr. McClearn noted that Mr. Radler’s chief asset is his interest in Horizon Publications, and has a lot of expertise in managing small community newspapers; he also has quite a bit of money left. Ms. Crockett then said that Mr. Radler has to come back as the head of a private company, as he is banned from heading up a public company. He is very focused on cost-cutting by habit. Regarding the effect on the quality of the newspapers, Mr. McClearn noted that newspapers at this level are run on the cheap anyway. Ms. Todd then asked Ms. Crockett how much Mr. Radler cares about journalism; she replied that Mr. Radler will be guided by the market with respect to this factor. Mr. McClearn chimed in by adding that running small newspapers on the cheap is David Radler’s métier, and Ms. Crockett then added that Mr. Radler’s daughter, who owns a few newspapers herself, doesn’t.

In her closing editorial, Ms. Todd noted that the show began with the beginning of the Conrad Black trial and reviewed what’s been aired since then. She ended by noting that The Verdict will be taking a hiatus until September 4th.


[This episode of The Verdict will be broadbanded as of 10:30 pm tonight. I don't know how long it'll stay up; it might be broadbanded until the resumption of the show on September 4th.]

Update: The Custody Hearing - Not Quite Free

According to a report by Romina Maurino, as webbed by 680 News, the prosecution filed a lengthy request for Conrad Black to be put in custody, as they consider him to be a "flight risk," and note that he's technically in violation of his bond conditions because he's technically in default on the mortgage of his Palm Beach home. (Not mentioned is whether or not the lender of the U.S. government would have first claim if any foreclosure proceedings were undertaken; given the general clime of U.S. law, particularly tax law, it might very well be the government.) The prosecution's filing also mentions the possibility of truculence on the part of the Canadian government with respect to an extradition hearing. A report by Barbara Schachter, as webbed by the Financial Post, adds that the prosecutors have, to support their claim with respect to the Canadian court system being refractory, an opinion from Barbara Kothe, a lawyer with the Justice Department's International Assistance Group, who claimed that the hearing would have to be a cross-border dealie conducted by a Canadian court: "'In our view, a waiver or content to extradition entered into before a foreign court would not satisfy the requirements of the Extradition Act, which requires a fresh consent or waiver before an extradition judge after extradition proceedings have been commenced,' Ms. Kothe wrote in a letter dated July 18." Paul Waldie's own report, webbed by the Globe and Mail, emphasizes this further reason supplied by Eric Sussman: "'While the government does not believe that Black poses a danger to the community, Black's conduct from the outset of these proceedings has demonstrated a lack of respect for the conditions of his release and the entire judicial process,' Mr. Sussman said in the filing."

According to a report aired by CTV NewsNet at 4:01 PM, Judge St. Eve asked if Conrad has any more money to meet an increased bond. Paula Todd took it as a significant sign that Judge St. Eve wants to tighten up the bail terms. She also reported that Conrad's defense has argued that there are no unfrozen assets available, and that prosecutors have secured an investigative team to find any hidden assets, all over the world. This investigation will also determine whether or not he has tucked away any money in his wife's and/or kids' names. Rosemary Thompson confirmed what Ms. Todd said earlier. She also interviewed Stephen Komie, who said that the inquiry into asset ownership is "standard procedure." Ms. Thompson also reported that the supposed 'mercy' shown by the prosectors has evaporated; they're now asking for 24 or 25 to 30 years. Csr. Comie supplied the 'as expected' context.

The defense has further argued, according to Ms. Thompson at about 4:30 PM ET, that Conrad Black is too known in Canada to hide out anywhere. She also noted that the hearing could take quite a while. Ms. Todd also reported that Judge St. Eve knows, through prior experience, that it can take years to extradite someone from Canada. She is also asking if an extradition would be enforcible. Ms. Thompson further reported that Csr. Sussman has argued that Conrad had violated a Canadian court order, holding it to be evidence of the flimsiness of Conrad's word. [CTV News has webbed a report on the hearing.]

A later report, also webbed by 680 News, has more detail on the additional-assets issue. Eddie Greenspan has argued that it is unlikely that an Ontario court would release assets so as to post an increase in the bond. "St. Eve said she wasn't ordering Black to disturb his settlement, adding: 'My question is: are there other assets that can be posted, even if it requires going back and asking the Canadian court's permission? I was hoping you would have some kind of good-faith proposal to post other assets.'"

In an update on CTV NewsNet aired at about 4:51 PM ET, Ms. Todd has passed on an inside report on the decision from Joy Malbon: Conrad doesn't have to go to jail, but he must stay in the Northern District of Illinois, or in Florida. He will be allowed to keep his passport. Ms. Todd commented that it was a "balanced" decision, as is typical for Judge St. Eve. In addition, as reported by Ms. Thompson from Ms. Malbon, Conrad has to make regular reports to a pre-trial officer before moving away from the Illinios northern district. The judge also said that she has insufficient assurance that Conrad will not launch an extradition fight should he move to Canada.

A further update, aired by CTV NewsNet at 5 PM, the bail hearing is over. Conrad Black is free on bail; can go to Florida but not must otherwise move from the Northern District of Illinois; has to report to a pre-trial officer [or bail officer]; and, must show up for a hearing on August 1st on his assets, which will decide whether or not he can go back to Canada. Ms. Todd reported that this gives Conrad about two weeks to get an accurate and transparent report on his finances.

Another report from Canadian Press, also webbed by 680 News, carries the same particulars. So does Mr. Waldie's latest; it also adds that "Judge Amy St. [Eve] said she wants more information on his assets and whether Lord Black can surrender his passport to Canadian Border Service Agency officials if he is eventually allowed to return to Canada."

Dan Matheson also reported on CTV NewsNet, as of 5:11 PM ET, that Conrad Black has amassed a bill of approximately $62 million in legal fees. Ms. Thompson had a quote from a post-hearing conference from Edward Genson, who called Judge St. Eve "a very reasonable woman." Conrad Black left the courtroom at 5:25 PM ET. He said nothing while exiting. Csr. Genson had little to say also, except for fencing and jollities, and Csr. Greenspan had little to say also.

Theresa Tedesco has written a report on the entire bail hearing, as webbed by the Financial Post. Another report has been webbed by CBC News, which notes that Conrad Black's passport is still in the court's possession.

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Mark Steyn has kept up his Maclean's Conrad Black trial blog, and has posted an entry on the bail hearing entitled "Limiting Options," in which he outlines why he is not satisfied with the judgement reached.

Douglas Bell, in the Toronto Life Conrad Black trial blog, continues his people watching at the courtroom.

Matthew McClearn, in the Canadian Business Black trial blog, has (as of Thurdsay afternoon) no comment after the one posted last Saturday, entitled "Requiem for the Fallen."

Finally, veteran CBC News pundit Larry Zolf has written an open letter, as webbed by the Ottawa Citizen, to Prime Minister Harper asking him to make Conrad a Canadian citizen. Mr. Zolf also identifies his political affilaition therein...

Wednesday, July 18, 2007

Reactions Of My Own

I've written a short piece for the webzine Enter Stage Right, advocating that Conrad Black be offered Canadian citizenship by Cabinet order. A recent CBC News report indicates that there isn't a good chance of it coming to pass, though.

Another, more jaundiced, piece has been webbed by LewRockwell.com, which expresses my distaste for the general use of the "ostrich instruction." The indirect effects should be interesting to watch, though...

Monday, July 16, 2007

Final Media Roundup: News and Reactions

The Conrad Black trial, as well as the trial of the other three defendants, is now over except for Conrad Black's bail hearing and the sentencing. The latter is scheduled for November 30th, and the bail hearing for Conrad Black is set for next Thursday. All four defendants were found guilty of counts 1, 6 and 7 in the indictment, and Conrad Black was also found guilty of the obstruction-of justice charge. The first three counts pertained to the non-compete payments associated with the sale of newspapers from American Publishing to Horizon Publishing.

These reports have been selected from the slew of the ones just issued, with a bias towards the regulars on the trial beat. Since the trial is over, with those two exceptions mentioned above, the entries in this blog will be slowing to a trickle. To those who have read it, I thank you all for stopping by. To the commenters, especially "nala" and those anonymous ones which I couldn't quite place, it was enjoyable reading, and mostly responding, to them.

Here is a selected list of the media reports on the outcome of the trial:

1. The indefatigable Paul Waldie, along with relative newcomer Tara Perkins, have written a report that covers the verdict; the defendants' reaction to it; the potential sentence of 35 years and a $1 million fine for Conrad Black; statements from both Eddie Greenspan and Edward Genson, which contained a public notice that Conrad will file an appeal; a declining of the opportunity to talk afterward by Conrad himself; the obervation that this case represents a "huge victory" for Eric Sussman and the others; and, a note that Conrad has waived his right to a jury assessment in the forfeiture matter. This report also contains several links to related articles, and the Globe's Conrad Black section has more.

2. The National Post has several stories on the trial, accessible from its home page today and from the Financial Post's Conrad Black trial portal page, which should be a more durable entry point. The main report, by Mary Vallis, also carries the verdict, potential sentence for Conrad, statements from both of his chief co-counsels, and the custody hearing. It also carries part of the statement made by Patrick J. Fitzgerald. There are also comments from a few observers, as well as some background.

3. Another regular, the reliable Romina Maurino, has written an extensive report entitled "Black to appeal fraud and obstruction convictions, lawyer says." Her report goes into some detail about Conrad's reaction to the verdict, and also mentions that the total amount covered by the charges for which convictions were gotten is US$3.5 million. The rest of the her report recaps the case, has more details on the first part of the bail hearing, and goes through the verdict count by count, defendant by defendant.

4. The report webbed by CTV News covers all the events of the day, and quotes Patrick J. Fitzgerald's intent to pursue 188 to 235 months' worth of sentence for Conrad Black. On the right hand side is a double-digit number of links to broadbanded video clips covering the trial. Several trial watchers, including Paula Todd, are quoted in it.

5. CBC News has a report out also. In addition to including the main parts of the story, it also mentions that the July 19th date for the custody hearing was set at the request of Csr. Greenspan. After summarizing the case, it quotes an expert who brings up the complicated nature of it.

6. The Toronto Star's special Conrad Black section has several stories and columns relating to the verdict.

7. The report by Ameet Sachdev of the Chicago Tribune notes that Conrad intends to return to Toronto to wait for the sentencing hearing, but has agreed to surrender his British passport until his custody hearing is over.

8. The report co-written by another regular, "Day One 'er" Mary Wisniewski, starts off with: "In a brutal downfall, former media tycoon Conrad Black will be going from a mansion to a prison cell as a jury on Friday convicted him of three counts of mail fraud and one count of obstruction of justice as part of a scam to rip off shareholders." It notes that none of the defendants cried when the verdict was read; neither did Barbara nor Alana.

9. The heavily-updated Bloomberg report, by Andrew Harris and Joe Schneider, has a thorough recap of both the prosecution's and defense's cases after reporting on the verdict itself.

10. Andrew Stern, the "Day One'er" from Reuters, covers the entire day's events in his report.

11. Mike Robinson is back on the trial beat for the Associated Press, as webbed by Forbes.com. His extensive report includes reactions from two experts, both veteran trial-watchers.

12. Andrew Clark of the Guardian describes Conrad looking "pale and drawn" as the verdict was read out. He also includes this description of Barbara and Alana at the same time: "Shielded by a US marshal, Black's wife, Barbara Amiel, leant over her grimacing husband with words of comfort while Black's daughter, Alana, glared straight ahead with her arms folded across her chest." An expert is quited in it, and it ends with a description of Conrad Black as he arrived at the Chicago courthouse at about 10 AM CT, or 11 AM ET.

13. A special episode of The Verdict was devoted to the Conrad Black trial. One of the first guests was Tom Bower, who appeared after a jury expert and a former prosecutor did. Peter C. Newman was another guest. It will be broadbanded at about 10:30 PM, and will be available until about 10:30 PM on July 14th.

14. Maclean's has prepared a roundup of media reactions from around the globe.

15. The Times Online has webbed James Bone's report, which mentions that Lord Black no longer has the right to sit as a Tory in the House of Lords.

16. Ms. Romino has written a capsule biography of Conrad Black which starts with the verdict and ends with a couple of commenters on his character.

17. Another profile has been written by Stephen Foley of the Independent, which presents Conrad's tragic flaw as the need to be cleverer than anyone.

18. Jacquie McNish, in the Globe, fingers Conrad Black as too proud for his own good - the type of pride that goes with blaming others when things go wrong.

19. The Guardian has webbed two opinion pieces in the "Comment Is Free" section: one contains in its end a plea for a law that would strip peers who become "serious convicts" of their titles; the second, by Kim Fletcher, says that Conrad isn't as bad as Robert Maxwell was.

20. Janet Whitman, of the New York Post, has written a report entitled "Black Bagged: Guilty on 4 Counts; Faces 35 Years In Jail."

21. Both Peter Worthington and Joe Warmington are columnists who have intermittently covered the trial. Mr. Worthington's reaction to the verdict consists of his impressions of the major participants and events in the trial. At its end, he invites the reader to decide for him- or herself whether justice has been done. Mr. Warmington begins by describing the reaction in the courtroom as the verdict was read out, including Conrad Black's, and then quotes from the statement by Patrick J. Fitzgerald. He end by describing the bail hearing, and discussing the likely sentence.

22. Susan Berger, as webbed by CBC News, has a report on the verdict reading as well.


If you would like to explore further, a Google news link, entitled "Conrad Black trial links for today," will call up quite a few.

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Mark Steyn, in his Maclean's Conrad Black trial blog, ends the post-sentencing-day-announcement post with this sentence: "Truly, the ways of US justice are a wonder to behold."

Douglas Bell, in the Toronto Life Conrad Black trial blog, has written an eyewitness account of the verdict being read, with a little perspective at the end of it.

The third media blogger regularly featured in this space, Matthew McClearn, has written for the Canadian Business Black trial blog a summing-up entitled "Nemesis" which recounts the initial part of Conrad Black's custody/bail hearing after the verdict was delivered.

The entry in the "Black Board" that's devoted to the verdict excerpts material found in another Post blog, "Posted," and itemizes the verdict for each defendant and each of the charges.

Finally, Steve Skurka has written a reflective summing-up entry in "The Crime Sheet" which in part details how he came to terms with his erroneous prediction of the outcome.