Chicago — Conrad Black has been convicted on four criminal charges, including obstruction and three counts of mail fraud. He was found not guilty on nine other charges. He now faces the prospect of as much as 35 years in jail.
Lord Black sat stone-faced, looking at the jury, as the judge asked each one if this was their verdict.
The most dire decision by the jury: on count 13, the jury judged Conrad Black guilty of obstruction of justice in connection with the removal of 13 boxes of documents from his office at 10 Toronto Street in Toronto. The charge carries a maximum penalty of 20 years in jail and a $250,000 (U.S.) fine.
Lord Black, 62, was also convicted on three counts of mail fraud.
Conrad Black has been found guilty on four counts, including obstruction and three counts of mail fraud; the obstruction charge carries a maximum penalty of 20 years in jail and a $250,000 fine. (Reuters)
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Together, the convictions carry a maximum jail term, if served consecutively, of 35 years and a maximum fine of $1-million.
Lord Black's key financial adviser, John Boultbee, was found guilty on three counts of mail fraud, as were Lord Black's long-time friend, Peter Atkinson, and the man who was credited with arranging the non-competition agreements central to the trial, Mark Kipnis.
Lord Black huddled with his family after the verdict was read. Other defendants hugged their lawyers, looking grim. Some were close to tears. Judge Amy St. Eve left to talk to jurors ahead of a hearing on bail conditions that followed shortly thereafter.
Lord Black's Toronto-based lawyer, Edward Greenspan, declined to comment during a short break before the bail hearing. When asked how Lord Black is doing he said "He's doing okay."
When the bail hearing resumed, lead prosecutor Eric Sussman moved to revoke Lord Black's bond, saying Lord Black likely faces between 15 and 20 years in jail which makes him a flight risk.
Edward Genson, Lord Black's Chicago-based lawyer, told the court that Lord Black is already preparing for an appeal. Mr. Genson argued that Lord Black's bail should not be revoked.
Lord Black waived his right to extradition as part of his original bail. But Mr. Sussman argued that could be irrelevant if Lord Black simply goes to Canada and does not return.
Mr. Genson said one option would be for Lord Black to remain in Chicago, pending the appeal. "It's an uncomfortable option, it's an expensive option, but it's better than going to jail," he said. The judge said she would consider that option.
Mr. Greenspan argued that Lord Black has no intention of fleeing, "His past, his present and his future are wrapped up in this case," he told the judge. "It would amaze me if he would entertain the thought of fleeing." He also told the court that Lord Black's assets are already tied up under a private agreement struck last fall with the new managers of Hollinger Inc.
Judge St. Eve ruled that Mr. Boultbee and Peter Atkinson can remain free on bail and travel between the U.S. and Canada. Mr. Boultbee's bail will remain at $1.5-million. Mr. Atkinson's bail remains at $2-million, secured by a house he owns in California.
A decision on bail for Lord Black however will wait until next Thursday, after Judge St. Eve ruled that she would give Lord Black's lawyers time to prepare arguments. In the meantime, Lord Black will remain in Chicago and he handed over his passport to the judge pending the bail hearing.
Judge St. Eve ordered Lord Black and the others to appear for sentencing on Nov. 30.
When asked outside the courtroom whether his client was going to appeal, Ron Safer, a lawyer for Mr.Kipnis, nodded.
A lawyer for Mr. Boultbee told reporters in an elevator that this is a "major defeat" for the government, citing, as an example, that Lord Black was not convicted on the charge of racketeering under the Racketeer influenced and Corrupt Organizations Act (RICO).
Leaving the court room, when asked if he had anything to say, Lord Black only said "no." He went to a room with his daughter and lawyer in the court house.
The verdicts came today after a three month trial and nearly three years of investigation by prosecutors in Chicago.
Lord Black had vigorously denied the allegations against him, but in the end jurors believed the word of 29 prosecution witnesses.
For Mr. Sussman, the guilty verdict is a huge victory for the prosecution and marks one of the biggest white collar crime convictions in Chicago. Mr. Sussman and his team of Julie Ruder, Jeffrey Cramer and Ed Siskel, had come under intense scrutiny throughout the trial for their tactics.
