Former media mogul Conrad Black sentenced to 6½ years for fraud

Conrad Black walked to the curb as he exited the Dirksen Federal Building in Chicago Monday amid a crush of reporters and photographers, attempting to keep up appearances after being sentenced to 6#189; years in prison.As the former head of media chain Hollinger International, he once oversaw hundreds of newspapers, including the Chicago Sun-Times, The Daily Telegraph of London and Jerusalem Post.After Monday's sentencing, Black, convicted of swindling Hollinger shareholders out of $6 million, was released on a $21 million bail and must report to prison by March 3. He did not comment as he left the courthouse.Black was also ordered to return $6 million and pay a $125,000 fine. U.S. District Judge Amy J. St. Eve originally granted a request he serve his term at a low security facility at Eglin Air Force Base in Florida and rejected a U.S. bid to seize his Palm Beach, Fla., home or the sale proceeds of his New York apartment. When the judge learned Eglin had closed last year, she substituted a low security prison near Coleman, Fla.The 6#189;-year sentence was less than the 24 years being requested by prosecutors. Under federal law he must serve 85 percent of the sentence.St. Eve rejected a claim by prosecutors that Black should be held responsible for $32 million in shareholder losses. She held him responsible for $6 million -- which lowered the potential sentencing range.The judge also noted F. David Radler, who helped run the media empire with Black and who cooperated with prosecutors as the star witness at Black's four-month trial, got 29 months in prison. Radler will serve in Canada, where his time could be greatly reduced.U.S. Attorney Patrick Fitzgerald defended the prosecution's case, noting a federal prison is far different than a Palm Beach mansion. "That is a serious change in life conditions," Fitzgerald said. "Mr. Black is going to prison as a fraud, convicted of fraud."The 63-year-old Canadian-born member of the British House of Lords was convicted July 13 on three counts of mail fraud and one count of obstruction of justice. Prosecutors said Black bilked his media firm of millions of dollars to support a lavish lifestyle. Before being sentenced, Black expressed "profound regret and sadness at the severe hardship inflicted on all the shareholders" after he left the company. He did not admit guilt or apologize for hurting his company, now known as the Sun Times Group. Its stock has fallen from $18 a share when he left in 2005 to less than $2 a share Monday. During the sentencing, Defense attorney Jeffrey B. Steinback read portions of letters written on Black's behalf from singer Elton John, conservative writers William Buckley and George Will and former Canadian Prime Minister Brian Mulroney. "This man has been a historian, has been an entrepreneur, he's been a statesman, a writer, a devoted husband, a loving father," said Steinback, who added Black remains intent on pursuing an appeal.Leading prosecutor Eric H. Sussman told the judge unlike a bank robber who steals from strangers, "Mr. Black stole money from people he did know #8230; he stole money from people who put their trust in him." Sussman added Black continues to insist he did nothing wrong and "will continue with this conduct again if given the chance." While awaiting his sentence, Black had been prevented by court order from returning to Canada and required to remain either in the Chicago area or at his Florida home. Two other former Hollinger executives, both Canadians, and a Chicago lawyer who worked for the media holding company were convicted along with Black and also were sentenced Monday. Convicted on fraud counts were John Boultbee, 64, former Hollinger chief financial officer; Peter Atkinson, 60, former Hollinger executive vice president, and Mark Kipnis, former Hollinger corporate counsel. Atkinson was sentenced to two years in prison and three years probation. Boultbee was sentenced to 2#188; years in prison, three years probation and $152,500 restitution.Black, Atkinson and Boultbee were convicted of paying bonuses to themselves without board approval out of the proceeds from the sale of Hollinger-owned newspapers.Black was acquitted of nine other charges, including racketeering. 512335Newspaper baron Conrad Black gazes up as he exits the Federal Building in Chicago after being sentenced to 78 months in prison.Mark Black | Staff Photographer