Conrad Black Gets 6 1/2 Years in Prison

By MIKE ROBINSON

CHICAGO – Former newspaper mogul Conrad Black on Monday was sentenced to 6 1/2 years in prison, the lightest punishment he faced for swindling shareholders in his Hollinger International media empire out of millions of dollars to support his lavish lifestyle.

Federal prosecutors had called for the 63-year-old Canadian-born member of the British House of Lords to be sentenced to up to 24 years, but guidelines determined earlier Monday set a range between 6 1/2 and slightly more than 8 years.

Before being sentenced, Black, who is renowned for his flamboyant way with words but did not testify at his trial, professed "profound regret and sadness at the severe hardship inflicted on all the shareholders" after he left the company. But he did not apologize for any actions he took while heading Hollinger.

St. Eve ordered Black to report to prison in 12 weeks, though she did not immediately give a specific date, and said he could remain free on his $21 million bond in the meantime.

Black was convicted July 13 on three counts of mail fraud and one count of obstruction of justice following a four-month trial before St. Eve.

A major point of dispute among attorneys had been how to calculate the total loss to shareholders. Prosecutors put it at $32 million. But a pre-sentence report, prepared by the probation department, figured the loss at $6 million, which could have factored in to the decision to keep Black’s sentence at the low end of the guidelines.

Earlier Monday, defense attorney Jeffrey B. Steinback read to St. Eve portions of letters written on Black’s behalf from singer Elton John, conservative writers William Buckley and George Will and former Canadian Prime Minister Brian Mulroney.

"This man has been a historian, has been an entrepreneur, he’s been a statesman, a writer, a devoted husband, a loving father," said Steinback, who added that Black remains intent on pursuing an appeal.

Leading prosecutor Eric H. Sussman told the judge he did not question Black’s accomplishments but that "Mr. Black stands here today convicted of stealing money from the company he founded and of obstructing the course of justice."

Unlike a bank robber who steals from strangers, "Mr. Black stole money from people he did know … he stole money from people who put their trust in him," said Sussman, who added that Black continues to insist he did nothing wrong and "will continue with this conduct again if given the chance."

While awaiting his sentence, Black had been prevented by court order from returning to Canada and required to remain either in the Chicago area or at his Florida estate. St. Eve said Monday she would recommend Black be incarcerated in Florida.

Two other former Hollinger executives, both Canadians, and a Chicago lawyer who worked for the big media holding company were convicted along with Black and also were due to be sentenced Monday.

Also convicted on the fraud counts were Jack Boultbee, 64, former Hollinger chief financial officer; Peter Atkinson, 60, former Hollinger executive vice president, and Mark Kipnis, former Hollinger corporate counsel.

In its heyday when Black was chairman and CEO, Hollinger International owned the Daily Telegraph of London, the Jerusalem Post, the Chicago Sun-Times and hundreds of U.S. and Canadian community newspapers.

Black, Atkinson and Boultbee were convicted of paying bonuses to themselves without board approval out of the proceeds from the sale of Hollinger-owned newspapers. The money allegedly was disguised as "non-compete payments" – payments made by the buyers to guarantee they would not face competition from the former owners.

Black was acquitted of nine other charges, including racketeering.

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Associated Press Writers Dave Carpenter and Don Babwin contributed to this report.