Court Hears Black’s Co-Defendant’s Cases

Conrad Black, Mark Kipnis and three other corporate officers of former Hollinger Inc. face a possible 20-year prison terms if convicted of any of the fraud counts they face. Black, 62, who led Hollinger for eight years, both as chairman and chief executive is charged with racketeering and fraud.

Gordon Paris, who took over the charge of Hollinger International Inc. from Black in November 2003, took the first stand at the trial. He categorically stated that Black "was very knowledgeable" about the finances of the company he's accused of siphoning off $84 million.

The revelation by Gorden is likely to weaken the defense claim that Black left majority of the financial details to top aide F. David Radler. Earlier, Black defense attorney Edward M. Genson had asserted that Black had largely left Hollinger business in western Canada and the United States to Radler while concentrating on eastern Canada and London.

Meanwhile lawyers of two other codefendants claimed that their clients didn't do anything illegal or were oblivious of ant unlawful activity at the company.

Mark Kipnis lawyer, Ronald Safer told the jury that his client relied on Hollinger's outside attorneys and auditors to draft public disclosures of the company's finances. Safer also claimed that Kipnis got none of the non-competition money. The latter got bonuses as he worked hard on the asset sales.

Hollinger International was once the world's third-largest publisher of English-language newspapers, including the Chicago Sun-Times, the U.K.'s Daily Telegraph, the Jerusalem Post and Canada's National Post.

Black and other codefendants are accused of selling off hundreds of community newspapers and pilfering fees from the buyers in return for agreements to not vie with the new owners in markets where the papers circulated.

A report in August 2004 by former U.S. Securities and Exchange Commission Chairman Richard Breeden had claimed "an overwhelming record of abuse, overreaching, and violations of fiduciary duties by Black and Radler."