Grand Old Police Blotter: Lord of The Cells Edition

Bad news for Lord" Conrad Black, ex-Canuck and neo-con press baron:

A longtime business partner of the former press baron Conrad M. Black was indicted on fraud charges yesterday and - in what may be bad news for Lord Black - has agreed to plead guilty and cooperate in the investigation.

The former partner, F. David Radler, is the former publisher of The Chicago Sun-Times, and co-founded Hollinger International Inc. with Lord Black....

....Legal specialists said Mr. Radler's deal was ominous for Lord Black.

"Cooperation by Mr. Radler can only spell trouble for Mr. Black," said Robert A. Mintz, a former federal prosecutor who is now a criminal defense lawyer. "In this particular case, the road to cooperation leads in only one direction."

...

The charges relate to payments totaling more than $32 million made to executives and parent companies of Hollinger International, which were ultimately controlled by Lord Black. Mr. Radler was the second-biggest shareholder of the companies. Prosecutors say that when Hollinger sold dozens of newspapers several years ago, the defendants disguised payments to them as part of agreements not to compete with the papers. But prosecutors said the payments were bonuses that should have been taxed.

...

Since then, a blizzard of civil actions has engulfed the company and its big-name roster of current and former directors - including former Gov. James Thompson of Illinois; former Secretary of State Henry A. Kissinger; a senior Reagan administration official, Richard N. Perle; and Marie-Josée Kravis, the wife of the financier Henry R. Kravis.

...

In past interviews and court filings, Mr. Black, 60, said he looked forward to vindicating himself in court. He argued that any money he took out of the company was authorized by the company's board. He also said he was blindsided by "corporate governance terrorists" who hijacked his company for their own gain.

"Are there dangerous men in federal prison, Frum?"

"Up to a point, Lord Black."