LAWFUEL – The Law Newswire – Conrad Black’s former right-hand man, David Radler, testified at his former employer’s fraud trial on how millions of dollars prosecutors claim were stolen began flowing to a Canadian company controlled by Black.
David Radler, who has pleaded guilty to a single count of fraud in the same case and faces 29 months in prison, detailed a $472 million sale of U.S. newspapers in 1998 that included $50 million in non-compete fees, part of which was siphoned off to the defendants.
Referring to Hollinger Inc., the company Black controlled, Radler said: “Mr. Black told me that Inc. deserved some of the non-compete monies that were being allocated.”
He said Inc. was the parent and as the parent it deserved a portion of the $50 million fee,” Radler said. “He said it was deserving. I listened. I certainly didn’t say no,” he added.
Radler said it was later determined that the Canadian company would get only $12 million.
But he said he did not disclose that information to the directors of Hollinger International Inc., the Chicago-based media company then also controlled by Hollinger Inc., which prosecutors say was cheated out of a total of $60 million from that deal and other transfers.