Share |

No more top jobs for convicted fraudster

The US Securities and Exchange Commission has barred a former media baron from holding a directorship in any US company following his conviction for fraud.

The US Securities and Exchange Commission has barred a former media baron from holding a directorship in any US company following his conviction for fraud.

The decision against Canadian-born Conrad Black, the former chief executive of the now-defunct Hollinger International, was announced yesterday.

He must also pay $4.1 million (€3.1 million) compensation to Chicago Newspaper Liquidation Corp – a company formed of many of Hollinger's divested assets.

The sum was reduced from the $6.1 million he was initially ordered to pay in October 2012 after Black appealed the ruling.

Black built Hollinger through the wealth he gained when he inherited an influential stake in a major Canadian holding company, Ravelston Corporation, from his father in 1976.

At its height Hollinger published 400 newspaper titles including the Chicago Sun-Times, the Jerusalem Post and Canada's National Post.

However, in 2004 Black was charged with fraud following an investigation by the SEC in to the sale of Hollinger's assets between 1999 and 2003.

The SEC found Black and his close associates had skimmed off at least $60 million from the proceeds of the sales, and had a history of using company cash to finance their lavish lifestyles.

He was found guilty on three counts in 2007, however, two of Black's convictions were later overturned. He spent 37 months in a Florida prison for his remaining conviction.

He was released in May 2012 and returned to his native Canada – despite renouncing his citizenship when he was made a peer of the British House of Lords in 2001.

He is now facing a similar case brought against him by the Ontario Securities Commission, which could ban him from buying or trading in securities and from becoming a director of a public company in Ontario.

The hearing is due to begin today.

Click here >>
Close