Hollinger Committee Files Report on Black, Directors

[Judi Lynn]

Hollinger Committee Files Report on Black, Directors (Update1)
Aug. 30 (Bloomberg) -- Hollinger International Inc., publisher of the Chicago Sun-Times, said a committee of its board investigating allegations of wrongdoing against former Chief Executive Conrad Black filed a report with a court in Chicago.

The full report will be submitted to the U.S. Securities and Exchange Commission and available to investors tomorrow, the Chicago-based company said in an e-mailed statement.

The board committee spent 14 months probing shareholders' claims that Black and top executives looted the company of more than $380 million through sham payments, excessive management fees and self-dealing. The board ousted Black in January and sued him in federal court in Chicago, where the report was filed.

Shareholders such as Tweedy Browne Co. have said the committee also should examine the conduct of the company's board, filled with political figures such as former U.S. Secretary of State Henry Kissinger, former Illinois Governor James Thompson and U.S. defense adviser Richard Perle. Tweedy Browne, the company's largest institutional investor, has said the board should have kept a closer eye on Black.
(snip/...)

http://quote.bloomberg.com/apps/news?pid=10000102&sid=ackQiqvzgO.M&refer=uk

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SEC to recommend civil charges against Hollinger Inc.
August 30, 2004

BY ASSOCIATED PRESS
The Securities and Exchange Commission's Midwest regional office plans to recommend civil charges be filed against Hollinger Inc. for alleged violations of the Securities Exchange Act, the company disclosed Monday.

In a statement, Toronto-based Hollinger, which is controlled by media baron Conrad Black, did not name the alleged violations but said it plans to formally tell the SEC why it believes the charges should not be brought.

Meanwhile, Chicago-based Hollinger International Inc., which owns the Chicago Sun-Times, Jerusalem Post and other major newspapers, said it plans to file its findings of a board investigation of alleged financial misappropriations by Black and others with the SEC on Tuesday. Hollinger International also filed the report in U.S. District Court in Chicago.

"It is an important step forward in our pursuit of restitution for funds and assets inappropriately taken from the company's coffers and in our efforts to significantly improve corporate governance at Hollinger International," said Gordon Paris, CEO and interim chairman of Hollinger International, in a written statement.
(snip/...)

http://www.suntimes.com/output/news/holl30.html

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Richard Perle:

How in hell's name can Richard Perle fulfill his promise to sue Seymour M. Hersh for libeling him in The New Yorker with the Hollinger International scandal widening and sucking up his time? The Times of London reports today that the internal investigation of Hollinger "is said to be now looking" at Hollinger board member Richard Perle's alleged failure to disclose to shareholders $3 million worth of bonuses for running a Hollinger investment project. One of the beneficiaries of the Hollinger investments was Trireme Partners ($2.5 million), the venture capital firm managed by Perle and probed by Hersh in his New Yorker feature. Another was Onset ($3 million), where Perle sits on the board of directors. Cambridge Display Technology, a company in which Perle reportedly holds a stake, received $14 million from Hollinger.

http://home.earthlink.net/~platter/neo-conservatism/perle.html

[IndianaGreen]

1. Hopefully Hollinger will sell off its newspapers, including the rightwing

Jerusalem Post.

[struggle4progress]

2. Probe: Ex-Hollinger CEO Looted Profits

Posted on Tue, Aug. 31, 2004
SETH SUTEL

Associated Press

<snip>
The committee also criticized Richard Perle, a member of Hollinger International's board, saying that he "repeatedly breached his fiduciary duties" a member of the board's executive committee. Perle was assistant secretary of defense under President Reagan and a former chairman of the Defense Dept.'s Defense Policy Board in the current Bush administration.
They found that Perle repeatedly signed papers without evaluating or even reading them, including several that cleared the way for payments to insiders in a way that allowed Black and Radler to avoid disclosing them to the board or to its audit committee.
They also found that Perle, together with Black, caused Hollinger International to make an investment in Trireme, an investment fund in which they both held a financial interest, without seeking the required approval from the board's audit committee.
<snip>

Black also billed the company for $28,480 for three dinners for former secretary of state Henry Kissinger, who is a board member, and his wife; as well as $24,950 for "summer drinks."
<snip>

http://www.ohio.com/mld/ohio/business/9547272.htm


Snapshots of key players at Hollinger

<snip>
_CONRAD BLACK. Born in Canada, later renounced citizenship to accept the title Lord Black of Crossharbour in the United Kingdom. Ousted as CEO and chairman of Hollinger International Inc. after an internal review found that he and several other executives improperly received millions in fees and payments. Remains controlling shareholder of Hollinger International through Hollinger Inc., a Toronto-based holding company that in turn is controlled through Ravelston Corp., a private Canadian company 65 percent owned by Black.

_DAVID RADLER. Former chief operating officer of Hollinger International as well as its former deputy chairman of the board. One of Black's closest confidantes, and owner of 14 percent of Ravelston. Former publisher of the Chicago Sun-Times, one of Hollinger's newspapers.

_RICHARD PERLE. Member of Hollinger International's board, and former member of its audit committee, compensation committee and executive committee. A former Assistant Secretary of Defense under President Reagan and a resident fellow at the American Enterprise Institute. Recently co-wrote the book "An End to Evil: How to Win the War on Terror."

_JAMES THOMPSON. Board member of Hollinger International and chairman of its audit committee. Former governor of Illinois. Chairman of Winston and Strawn, a prominent law firm, and a member of the Sept. 11 commission.
<snip>

http://www.wqad.com/Global/story.asp?S=2242608

[LauraK]

3. CNN just picked this up too.

http://edition.cnn.com/2004/BUSINESS/08/31/us.conradblack.ap/index.html