United States v. Conrad Black
Encyclopedia
United States v. Conrad Black is the title of businessman Conrad Black
's criminal fraud trial held in the United States of America.
For example, in 2000, in an illegal and surreptitious arrangement that came to be known as the "Lerner Exchange," Black acquired Chicago's Lerner Newspapers
and sold it to Hollinger. The subsequent report supported allegations of impropriety and led to criminal investigations and ultimately, the unraveling of Conrad Black's financial empire.
In May 2003, New York investment firm Tweedy, Browne
, which had an 18% stake in Hollinger International, demanded the company probe what it alleged to be excessive payments to Conrad Black and David Radler, and demanded "disgorgement" of the funds paid.
Black attempted to sell controlling interest in Hollinger International to British businessmen David and Frederick Barclay
. The Hollinger board of directors sued to halt Black's proposed transaction.
In November 2003, under pressure, Black resigned as chief executive of Hollinger
. By January 2004 the board of directors of Hollinger obtained Black's resignation as chairman. Hollinger International filed a $200 million (USD) lawsuit against Black, David Radler and their associated companies.
In February, 2004, Delaware judge Leo E. Strine, Jr.
barred the sale and wrote in his judgment, "Black breached his fiduciary and contractual duties persistently and seriously... I found Black evasive and unreliable. His explanations of key events and of his own motivations do not have the ring of truth."
In August 2004, a special committee of the Board of Directors of Hollinger International Inc. made a report of investigation to the U.S. Securities and Exchange Commission and the U.S. District Court. The "Breeden Report" alleged that Black and associates had without proper authorization taken cash and other assets and benefits from Hollinger and had breached their fiduciary duties to Hollinger’s public majority, non-controlling shareholders.
In November 2004, the SEC
filed civil fraud
lawsuits against Black and several others, alleging the defendants cheated and defrauded shareholders through a series of deceptive schemes and misstatements. One year later, eight criminal fraud charges were brought by the Chicago U. S. Attorney
against Black and three former Hollinger executives. The U.S. Attorney laid four new charges against Black on 15 December 2005, alleging racketeering
, obstruction of justice
, money laundering
, mail fraud, tax evasion
and wire fraud
. Under the racketeering count, the government sought forfeiture
of more than $92,000,000 (USD). The obstruction count related to Black and his chauffeur removing boxes of documents from Hollinger offices in Toronto on June 9, 2005 contrary to a court order that prohibited removal.
The criminal fraud trial of Black and three other Hollinger International executives commenced on 14 March 2007.
Co-accused, Peter Y. Atkinson, John A. Boultbee and Mark Kipnis, were each found guilty of mail and wire fraud (David Radler had already pleaded guilty to fraud).
On November 5, 2007, Judge Amy St. Eve denied Black's bid for a new trial. On December 10, 2007, Black was sentenced to 78 months in jail. Twelve weeks later, he lost a bid in the Court of Appeals to remain free on bail while appealing his convictions. Black requested to be housed in a minimum security prison camp near Miami but the Bureau of Prisons denied his request and instead ordered him to report to Coleman Federal Correctional Complex near Orlando, Florida on March 3, 2008 to begin serving his sentence. Prior to his being granted bail, Black's projected release date was in October 2013.
Investigators hired by Hollinger companies have been examining more than forty bank accounts which may be, or may have been, held in the name of Black, his wife, or affiliated entities. According to court filings, Ravelston Corp. also had a subsidiary in Barbados
called Argent News Inc. and another in Bermuda
called Sugra Bermuda Ltd. A report by a special committee of the board of Hollinger International Inc. said Black co-owned two Barbados companies, Moffat Management Inc. and Black-Amiel Management Inc., which both received millions of dollars in payments, the former allegedly owned by Black and his co-defendants, and the latter by Black, his wife and Boultbee. In November 2007, Sun-Times Media Group (ex-Hollinger) said in a regulatory filing that it had spent $107.7 million on legal fees and indemnification costs for criminal and civil actions involving Black, Boultbee, Kipniss and Atkinson. If appeals are unsuccessful, the company may seek to recover the money.
After the verdict, New Democratic Party
of Canada Member of Parliament
Charlie Angus
publicly called for Black's expulsion from the Queen's Privy Council for Canada
and for his removal from the Order of Canada
. The Toronto Star
similarly called for Governor General Michaëlle Jean
to remove Black from the Order. Canadian Prime Minister Stephen Harper
stated that Black would have to go through regular channels to attempt to regain his Canadian citizenship, that membership in the Order of Canada is the purview of the Governor General and that decisions about the Privy Council would only take place after the legal process, including appeal, had been completed.
Black's ability to re-enter Canada is uncertain unless he obtains dispensation from the Canadian government. Were he to regain residency, "Canadian citizenship can't be granted to those who are criminally inadmissible and neither the minister nor the Governor in Council (cabinet) can override that," according to an immigration department spokesperson. The loss of his Canadian citizenship also makes it impossible for Black to be transferred to a Canadian prison where he would be eligible for parole much sooner than if he were to serve time in the United States.
said, "The bulk of the evidence [in the Hollinger case] has to do with pretty naked fraud." Posner was skeptical about defense arguments that Black did not obstruct justice by removing boxes from his Toronto office, commenting, "The timing was bizarre, the removal of the documents in the middle of an investigation." Three weeks later, on June 25, 2008, the 7th Circuit Court of Appeals affirmed the convictions in a decision that called some of Black's conduct at Hollinger "ridiculous" and rejected all of the arguments raised by the defense. The appellate court found that "the evidence established a conventional fraud, that is, a theft of money or other property from Hollinger by misrepresentations and misleading omissions..." The panel affirmed the jury's findings stating that, "It is not as if Black had merely been using his power as controlling shareholder to elect a rubber-stamp board of directors or to approve a merger favorable to him at the expense of the minority shareholders ... He was acting in his capacity as the CEO of Hollinger when he ordered (Mark) Kipnis to draft the covenants not to compete and when he duped the audit committee and submitted a false 10-K."
Prosecutor Eric Sussman replied to news of the initial appeal decision saying, "I think at some point in time Mr. Black needs to take a hard look in the mirror and ask who it is that really doesn’t understand the conduct that took place in this case…You’ve got 16 people who have taken a look at the facts and the law in a very detailed and time-consuming way, and they have all reached the same conclusion, which is that he stole money from this company and he tried to obstruct the investigation."
Black added Harvard professor Alan Dershowitz
to his law team and asked the 7th Circuit Court to reconsider the appeal decision without success. In June 2008, he ruled out trying to obtain a presidential pardon from George W. Bush
, however he later applied for one in November of the same year. The final acts of clemency of Bush's presidency were announced on his last full day of office, January 19, 2009. Black's name was not included in the list of commuted sentences.
The US Supreme Court heard an appeal of Black's fraud conviction on 8 December 2009. Black's application for bail pending his appeal was turned down by the Supreme Court and subsequently by Judge St. Eve of the US District Court.
The Supreme Court only reviewed Black's fraud convictions and did not reconsider his conviction for obstruction of justice for which he has received a sentence that is concurrent with his sentence for fraud meaning that even a successful appeal may not result in a reduction of his prison sentence. Eric Sussman, Black's prosecutor in the Chicago trial, told the Toronto Star that the Supreme Court's rejection of Black's bail request means that the "Supreme Court is confident that no matter what happens he's still going to be serving six-and-a-half years for obstruction of justice" regardless of the outcome of his appeal.
On June 24, 2010, The U.S. Supreme Court released its 9-0 decision ordering the Illinois appeal court that upheld his conviction to review three fraud convictions against Montreal-born Conrad Black in light of the Supreme Court's new definition of "honest services" fraud
. The appeal court will review Black's case and determine whether his fraud convictions will stand or if there should be a new trial. The jailed former media baron's obstruction of justice conviction, for which he is serving a concurrent 6 ½ year sentence, remains in place. Black's lawyers filed an application for bail pending the appeal court's review. Prosecutors contested Black’s bail request arguing in court papers that Black’s trial jury had proof that Black committed fraud. On July 19, 2010, he was granted bail
pending a decision by the court on whether to retry his 2008 criminal fraud conviction. He was released on July 21, 2010, on a $2 million bond signed by Roger Hertog
.
Black has been released on bail and has been ordered to remain in the continental United States until at least August 16 when his bail hearing will resume, by which time Black and the prosecution have been ordered by the Seventh Circuit Court of Appeals to submit written arguments for the court's review of his case.
On October 28, 2010, the U.S. 7th Circuit Court of Appeals overturned two of the three remaining mail fraud counts. It left Black convicted of one count of mail fraud and one count of obstruction of justice. The court also ruled that he must be resentenced. On December 17, 2010, Black lost an appeal of his remaining convictions for fraud and obstruction of justice. The three-person panel did not provide reasons. On May 31, 2011, the Supreme Court of the United States
refused to grant Black leave to appeal his two remaining convictions without any comment. Resentencing on the two remaining counts by the original trial judge occurred on June 24, 2011. Black's lawyers are recommending he be sentenced to the 29 months he's already served while the prosecution is arguing for Black to complete his original 6 1/2 year sentence. The probation officer's report recommends a sentence of between 33 and 41 months. On June 24, 2011, Judge St. Eve resentenced him to a reduced term of 42 months and a fine of $150,000 returning him to prison to serve the remaining 13 months of his sentence.
#18330-424, was incarcerated at Coleman Federal Correctional Complex near Orlando, Florida or 28 months from March 3, 2008 until he was released on bail on July 21, 2010.
In August 2008, Black's wife, journalist Barbara Amiel
, defended her husband in a lengthy article first published by Maclean's then in The Sunday Times
.
On August 23, 2008, Black authored a piece in the National Post about the experience of jail. He repeated his assertion that he had been wrongly convicted and asserted "The bunk about a lavish lifestyle was disbelieved and rejected by the jury." He believes that time will show the Canadian and American justice systems were disgraced by his conviction, not him. He adds, "But someone has to resist the putrification of justice in these jurisdictions, and if someone of my means doesn't, who will?"
In 2008 Black wrote to the Canadian Press
, commenting that, "I am doing fine. This (prison) is a safe and civilized place, and I don't anticipate any difficulty."
After being promoted from his initial prison job as a dishwasher
, he taught high school level classes in American history helping a dozen prisoners earn their high school diploma
s. Black was nicknamed "Lordy" by his fellow convicts.
Conrad Black
Conrad Moffat Black, Baron Black of Crossharbour, OC, KCSG, PC is a Canadian-born member of the British House of Lords, and a historian, columnist and publisher, who was for a time the third largest newspaper magnate in the world. Lord Black controlled Hollinger International, Inc...
's criminal fraud trial held in the United States of America.
Probe against Hollinger Inc.
In May 2003, following shareholder complaints, a special committee appointed by Hollinger International directors began investigation of internal financial management, particularly compensation and fees paid directly and indirectly to Ravelston's and Black's associates.For example, in 2000, in an illegal and surreptitious arrangement that came to be known as the "Lerner Exchange," Black acquired Chicago's Lerner Newspapers
Lerner Newspapers
Lerner Newspapers was once the largest chain of weekly newspapers in the world. Founded by Leo Lerner, the chain was a force in community journalism in Chicago from 1926 to 2005....
and sold it to Hollinger. The subsequent report supported allegations of impropriety and led to criminal investigations and ultimately, the unraveling of Conrad Black's financial empire.
In May 2003, New York investment firm Tweedy, Browne
Tweedy, Browne
Tweedy, Browne Company LLC is an American investment advisory and fund management firm founded in 1920. It currently manages almost 6 billion US dollars in separate accounts and three mutual funds. All of the funds are managed in accordance to the principles of Value Investing as popularized by...
, which had an 18% stake in Hollinger International, demanded the company probe what it alleged to be excessive payments to Conrad Black and David Radler, and demanded "disgorgement" of the funds paid.
Black attempted to sell controlling interest in Hollinger International to British businessmen David and Frederick Barclay
David and Frederick Barclay
Sir David Rowat Barclay and Sir Frederick Hugh Barclay are British businessmen. The identical twin brothers have very substantial business interests primarily in media, retail and property. The Sunday Times Rich List of 2007 estimated their wealth at £1.8 billion...
. The Hollinger board of directors sued to halt Black's proposed transaction.
In November 2003, under pressure, Black resigned as chief executive of Hollinger
Sun-Times Media Group
Sun-Times Media Group is a Chicago-based newspaper publisher. It is known for its prior association with controversial Canadian businessman Conrad Black.-History:...
. By January 2004 the board of directors of Hollinger obtained Black's resignation as chairman. Hollinger International filed a $200 million (USD) lawsuit against Black, David Radler and their associated companies.
Lawsuits filed by the SEC
Black was called before the U.S. Securities and Exchange Commission in December 2003 but he refused to answer questions about business dealings, citing his Fifth Amendment right against self-incrimination.In February, 2004, Delaware judge Leo E. Strine, Jr.
Leo E. Strine, Jr.
Leo E. Strine, Jr. is a judge in the state of Delaware. He serves on Delaware's Court of Chancery with the title of Chancellor.-Career:Strine graduated magna cum laude from the University of Pennsylvania Law School in 1988 with his J.D., after having received his B.A. summa cum laude from the...
barred the sale and wrote in his judgment, "Black breached his fiduciary and contractual duties persistently and seriously... I found Black evasive and unreliable. His explanations of key events and of his own motivations do not have the ring of truth."
In August 2004, a special committee of the Board of Directors of Hollinger International Inc. made a report of investigation to the U.S. Securities and Exchange Commission and the U.S. District Court. The "Breeden Report" alleged that Black and associates had without proper authorization taken cash and other assets and benefits from Hollinger and had breached their fiduciary duties to Hollinger’s public majority, non-controlling shareholders.
In November 2004, the SEC
United States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
filed civil fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
lawsuits against Black and several others, alleging the defendants cheated and defrauded shareholders through a series of deceptive schemes and misstatements. One year later, eight criminal fraud charges were brought by the Chicago U. S. Attorney
United States Attorney
United States Attorneys represent the United States federal government in United States district court and United States court of appeals. There are 93 U.S. Attorneys stationed throughout the United States, Puerto Rico, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands...
against Black and three former Hollinger executives. The U.S. Attorney laid four new charges against Black on 15 December 2005, alleging racketeering
Racket (crime)
A racket is an illegal business, usually run as part of organized crime. Engaging in a racket is called racketeering.Several forms of racket exist. The best-known is the protection racket, in which criminals demand money from businesses in exchange for the service of "protection" against crimes...
, obstruction of justice
Obstruction of justice
The crime of obstruction of justice, in United States jurisdictions, refers to the crime of interfering with the work of police, investigators, regulatory agencies, prosecutors, or other officials...
, money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
, mail fraud, tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
and wire fraud
Wire fraud
Mail and wire fraud is a federal crime in the United States. Together, 18 U.S.C. §§ 1341, 1343, and 1346 reach any fraudulent scheme or artifice to intentionally deprive another of property or honest services with a nexus to mail or wire communication....
. Under the racketeering count, the government sought forfeiture
Search and seizure
Search and seizure is a legal procedure used in many civil law and common law legal systems whereby police or other authorities and their agents, who suspect that a crime has been committed, do a search of a person's property and confiscate any relevant evidence to the crime.Some countries have...
of more than $92,000,000 (USD). The obstruction count related to Black and his chauffeur removing boxes of documents from Hollinger offices in Toronto on June 9, 2005 contrary to a court order that prohibited removal.
The criminal fraud trial of Black and three other Hollinger International executives commenced on 14 March 2007.
Verdict and sentence
After twelve days of deliberation, on 13 July 2007, the jury found Black guilty of three counts of mail and wire fraud and one count of obstruction of justice and acquitted him of nine other charges, including wire fraud and racketeering. The fraud convictions related to money taken by the executives in exchange for their agreements to not compete with a Hollinger unit. Prosecutors said these were sham agreements.Co-accused, Peter Y. Atkinson, John A. Boultbee and Mark Kipnis, were each found guilty of mail and wire fraud (David Radler had already pleaded guilty to fraud).
On November 5, 2007, Judge Amy St. Eve denied Black's bid for a new trial. On December 10, 2007, Black was sentenced to 78 months in jail. Twelve weeks later, he lost a bid in the Court of Appeals to remain free on bail while appealing his convictions. Black requested to be housed in a minimum security prison camp near Miami but the Bureau of Prisons denied his request and instead ordered him to report to Coleman Federal Correctional Complex near Orlando, Florida on March 3, 2008 to begin serving his sentence. Prior to his being granted bail, Black's projected release date was in October 2013.
Reaction and consequences
Black told journalists he would continue his "long war" against the charges and said "any conviction is unsatisfactory". After the verdicts, Black's Canadian lawyer Edward Greenspan said, "The heart of their case was lost." However, former federal prosecutor and SEC enforcement lawyer Jacob Frenkel called it a "stunning victory" for the government and explained how a split verdict "highlights for the appellate court that the jury was very thoughtful and thorough in its deliberations."Investigators hired by Hollinger companies have been examining more than forty bank accounts which may be, or may have been, held in the name of Black, his wife, or affiliated entities. According to court filings, Ravelston Corp. also had a subsidiary in Barbados
Barbados
Barbados is an island country in the Lesser Antilles. It is in length and as much as in width, amounting to . It is situated in the western area of the North Atlantic and 100 kilometres east of the Windward Islands and the Caribbean Sea; therein, it is about east of the islands of Saint...
called Argent News Inc. and another in Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
called Sugra Bermuda Ltd. A report by a special committee of the board of Hollinger International Inc. said Black co-owned two Barbados companies, Moffat Management Inc. and Black-Amiel Management Inc., which both received millions of dollars in payments, the former allegedly owned by Black and his co-defendants, and the latter by Black, his wife and Boultbee. In November 2007, Sun-Times Media Group (ex-Hollinger) said in a regulatory filing that it had spent $107.7 million on legal fees and indemnification costs for criminal and civil actions involving Black, Boultbee, Kipniss and Atkinson. If appeals are unsuccessful, the company may seek to recover the money.
After the verdict, New Democratic Party
New Democratic Party
The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in...
of Canada Member of Parliament
Member of Parliament
A Member of Parliament is a representative of the voters to a :parliament. In many countries with bicameral parliaments, the term applies specifically to members of the lower house, as upper houses often have a different title, such as senate, and thus also have different titles for its members,...
Charlie Angus
Charlie Angus
Charles Joseph Angus MP is a Canadian writer, broadcaster, musician, and politician. Angus entered electoral politics in 2004 as the successful New Democratic Party candidate in the Ontario riding of Timmins—James Bay. He was the NDP parliamentary critic for Canadian Heritage from 2004 to 2007,...
publicly called for Black's expulsion from the Queen's Privy Council for Canada
Queen's Privy Council for Canada
The Queen's Privy Council for Canada ), sometimes called Her Majesty's Privy Council for Canada or simply the Privy Council, is the full group of personal consultants to the monarch of Canada on state and constitutional affairs, though responsible government requires the sovereign or her viceroy,...
and for his removal from the Order of Canada
Order of Canada
The Order of Canada is a Canadian national order, admission into which is, within the system of orders, decorations, and medals of Canada, the second highest honour for merit...
. The Toronto Star
Toronto Star
The Toronto Star is Canada's highest-circulation newspaper, based in Toronto, Ontario, Canada. Its print edition is distributed almost entirely within the province of Ontario...
similarly called for Governor General Michaëlle Jean
Michaëlle Jean
Michaëlle Jean is a Canadian journalist and stateswoman who served as Governor General of Canada, the 27th since Canadian Confederation, from 2005 to 2010....
to remove Black from the Order. Canadian Prime Minister Stephen Harper
Stephen Harper
Stephen Joseph Harper is the 22nd and current Prime Minister of Canada and leader of the Conservative Party. Harper became prime minister when his party formed a minority government after the 2006 federal election...
stated that Black would have to go through regular channels to attempt to regain his Canadian citizenship, that membership in the Order of Canada is the purview of the Governor General and that decisions about the Privy Council would only take place after the legal process, including appeal, had been completed.
Black's ability to re-enter Canada is uncertain unless he obtains dispensation from the Canadian government. Were he to regain residency, "Canadian citizenship can't be granted to those who are criminally inadmissible and neither the minister nor the Governor in Council (cabinet) can override that," according to an immigration department spokesperson. The loss of his Canadian citizenship also makes it impossible for Black to be transferred to a Canadian prison where he would be eligible for parole much sooner than if he were to serve time in the United States.
Appeal
Black's oral arguments were heard June 5, 2008 by a three-judge panel of the 7th U.S. Circuit Court of Appeals. Andrew Frey argued that Black and his co-defendants did not steal from Hollinger when they authorized individual non-competition payments. Frey asserted that the monies were "management fees" and that Hollinger International shareholders were not hurt by the payments. Appeals judge Richard PosnerRichard Posner
Richard Allen Posner is an American jurist, legal theorist, and economist who is currently a judge on the United States Court of Appeals for the Seventh Circuit in Chicago and a Senior Lecturer at the University of Chicago Law School...
said, "The bulk of the evidence [in the Hollinger case] has to do with pretty naked fraud." Posner was skeptical about defense arguments that Black did not obstruct justice by removing boxes from his Toronto office, commenting, "The timing was bizarre, the removal of the documents in the middle of an investigation." Three weeks later, on June 25, 2008, the 7th Circuit Court of Appeals affirmed the convictions in a decision that called some of Black's conduct at Hollinger "ridiculous" and rejected all of the arguments raised by the defense. The appellate court found that "the evidence established a conventional fraud, that is, a theft of money or other property from Hollinger by misrepresentations and misleading omissions..." The panel affirmed the jury's findings stating that, "It is not as if Black had merely been using his power as controlling shareholder to elect a rubber-stamp board of directors or to approve a merger favorable to him at the expense of the minority shareholders ... He was acting in his capacity as the CEO of Hollinger when he ordered (Mark) Kipnis to draft the covenants not to compete and when he duped the audit committee and submitted a false 10-K."
Prosecutor Eric Sussman replied to news of the initial appeal decision saying, "I think at some point in time Mr. Black needs to take a hard look in the mirror and ask who it is that really doesn’t understand the conduct that took place in this case…You’ve got 16 people who have taken a look at the facts and the law in a very detailed and time-consuming way, and they have all reached the same conclusion, which is that he stole money from this company and he tried to obstruct the investigation."
Black added Harvard professor Alan Dershowitz
Alan Dershowitz
Alan Morton Dershowitz is an American lawyer, jurist, and political commentator. He has spent most of his career at Harvard Law School where in 1967, at the age of 28, he became the youngest full professor of law in its history...
to his law team and asked the 7th Circuit Court to reconsider the appeal decision without success. In June 2008, he ruled out trying to obtain a presidential pardon from George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
, however he later applied for one in November of the same year. The final acts of clemency of Bush's presidency were announced on his last full day of office, January 19, 2009. Black's name was not included in the list of commuted sentences.
The US Supreme Court heard an appeal of Black's fraud conviction on 8 December 2009. Black's application for bail pending his appeal was turned down by the Supreme Court and subsequently by Judge St. Eve of the US District Court.
The Supreme Court only reviewed Black's fraud convictions and did not reconsider his conviction for obstruction of justice for which he has received a sentence that is concurrent with his sentence for fraud meaning that even a successful appeal may not result in a reduction of his prison sentence. Eric Sussman, Black's prosecutor in the Chicago trial, told the Toronto Star that the Supreme Court's rejection of Black's bail request means that the "Supreme Court is confident that no matter what happens he's still going to be serving six-and-a-half years for obstruction of justice" regardless of the outcome of his appeal.
On June 24, 2010, The U.S. Supreme Court released its 9-0 decision ordering the Illinois appeal court that upheld his conviction to review three fraud convictions against Montreal-born Conrad Black in light of the Supreme Court's new definition of "honest services" fraud
Honest services fraud
Honest services fraud refers to a 28-word sentence of , added by the United States Congress in 1988, which states: "For the purposes of this chapter, the term, scheme or artifice to defraud includes a scheme or artifice to deprive another of the intangible right of honest services."The statute...
. The appeal court will review Black's case and determine whether his fraud convictions will stand or if there should be a new trial. The jailed former media baron's obstruction of justice conviction, for which he is serving a concurrent 6 ½ year sentence, remains in place. Black's lawyers filed an application for bail pending the appeal court's review. Prosecutors contested Black’s bail request arguing in court papers that Black’s trial jury had proof that Black committed fraud. On July 19, 2010, he was granted bail
Bail
Traditionally, bail is some form of property deposited or pledged to a court to persuade it to release a suspect from jail, on the understanding that the suspect will return for trial or forfeit the bail...
pending a decision by the court on whether to retry his 2008 criminal fraud conviction. He was released on July 21, 2010, on a $2 million bond signed by Roger Hertog
Roger Hertog
Roger Hertog is an American businessman, financier and conservative philanthropist. Born and raised in the Bronx borough of New York City, New York, Hertog pursued a career in business....
.
Black has been released on bail and has been ordered to remain in the continental United States until at least August 16 when his bail hearing will resume, by which time Black and the prosecution have been ordered by the Seventh Circuit Court of Appeals to submit written arguments for the court's review of his case.
On October 28, 2010, the U.S. 7th Circuit Court of Appeals overturned two of the three remaining mail fraud counts. It left Black convicted of one count of mail fraud and one count of obstruction of justice. The court also ruled that he must be resentenced. On December 17, 2010, Black lost an appeal of his remaining convictions for fraud and obstruction of justice. The three-person panel did not provide reasons. On May 31, 2011, the Supreme Court of the United States
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
refused to grant Black leave to appeal his two remaining convictions without any comment. Resentencing on the two remaining counts by the original trial judge occurred on June 24, 2011. Black's lawyers are recommending he be sentenced to the 29 months he's already served while the prosecution is arguing for Black to complete his original 6 1/2 year sentence. The probation officer's report recommends a sentence of between 33 and 41 months. On June 24, 2011, Judge St. Eve resentenced him to a reduced term of 42 months and a fine of $150,000 returning him to prison to serve the remaining 13 months of his sentence.
Life in prison
Black, Federal Bureau of PrisonsFederal Bureau of Prisons
The Federal Bureau of Prisons is a federal law enforcement agency subdivision of the United States Department of Justice and is responsible for the administration of the federal prison system. The system also handles prisoners who committed acts considered felonies under the District of Columbia's...
#18330-424, was incarcerated at Coleman Federal Correctional Complex near Orlando, Florida or 28 months from March 3, 2008 until he was released on bail on July 21, 2010.
In August 2008, Black's wife, journalist Barbara Amiel
Barbara Amiel
Barbara Joan Estelle Amiel, Baroness Black of Crossharbour is a British-Canadian journalist, writer, and socialite. She is also the wife of former media baron and convicted felon Conrad Black.-Early life:...
, defended her husband in a lengthy article first published by Maclean's then in The Sunday Times
The Sunday Times
The Sunday Times is a British Sunday newspaper.The Sunday Times may also refer to:*The Sunday Times *The Sunday Times *The Sunday Times *The Sunday Times...
.
On August 23, 2008, Black authored a piece in the National Post about the experience of jail. He repeated his assertion that he had been wrongly convicted and asserted "The bunk about a lavish lifestyle was disbelieved and rejected by the jury." He believes that time will show the Canadian and American justice systems were disgraced by his conviction, not him. He adds, "But someone has to resist the putrification of justice in these jurisdictions, and if someone of my means doesn't, who will?"
In 2008 Black wrote to the Canadian Press
Canadian Press
Canadian Press Enterprises Inc. is the entity which "will take over the operations of the Canadian Press" according to a November 26, 2010 article in the Toronto Star...
, commenting that, "I am doing fine. This (prison) is a safe and civilized place, and I don't anticipate any difficulty."
After being promoted from his initial prison job as a dishwasher
Dishwasher
A dishwasher is a mechanical device for cleaning dishes and eating utensils. Dishwashers can be found in restaurants and private homes.Unlike manual dishwashing, which relies largely on physical scrubbing to remove soiling, the mechanical dishwasher cleans by spraying hot water, typically between ...
, he taught high school level classes in American history helping a dozen prisoners earn their high school diploma
High school diploma
A high school diploma is a diploma awarded for the completion of high school. In the United States and Canada, it is considered the minimum education required for government jobs and higher education. An equivalent is the GED.-Past diploma styles:...
s. Black was nicknamed "Lordy" by his fellow convicts.