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Conrad Black

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My Destruction by Murdoch

Posted: 09/27/11 01:00 PM ET

In 2007, I was convicted of fraud and sentenced to six-and-a-half years of imprisonment. At the time I was ranked as the third largest newspaper magnate in the world: Through my company, Hollinger International, I published many of the most famous newspapers in the world, including the Daily Telegraph, the Chicago Sun-Times, the National Post, the Jerusalem Post, and hundreds of community newspapers throughout North America. I'd been a member of the British Parliament since 2001, and was known formally as Lord Black of Crossharbour. All but my title were subsequently stripped away from me: My company was destroyed by court-sponsored administrators who vaporized $2 billion of shareholders' equity while pocketing $300 million for themselves. I sold my homes in London, New York, and Palm Beach, as I did not wish to own a home in a country where I would not be welcome (and would be ambivalent about visiting anyway), and to ensure that I had plenty of cash for avaricious American lawyers. Only the home in which I grew up, in Toronto, Canada, was spared.

My prosecutors began with a demand for life imprisonment and fines and restitution of $140 million. Their 17-count indictment accusing me of racketeering, money laundering and almost everything except complicity in the murder of Abraham Lincoln, however, disintegrated. Four counts were not proceeded with, nine were rejected by jurors, and four were unanimously vacated by the U.S. Supreme Court in 2010. The U.S. Seventh Circuit Court of Appeals overturned two of the three remaining mail fraud counts in October of that year. On July 19, 2010, after I had served 29 months of a 78 month sentence in a federal prison, I was granted bail. And on June 24, 2011, I was resentenced on one remaining count of mail fraud and one count of obstruction of justice and a fine of $125,000. I was sent back to prison for a little less than eight months. I write from there.

No sane, fair-minded person could possibly now believe that I was guilty of any crime, and no similarly endowed person, writing from the vantage point I do, could have endured this persecution for over eight years without it diluting his affection for the United States. Before this cataract of horrors began, I had known that there were some dodgy aspects to the U.S. legal system, and feared that the plea bargain system was essentially a bazaar for the exchange of inculpatory perjury for reduced sentences or immunities, a traffic that would lead to the disbarment of prosecutors in most serious jurisdictions.

Of course, the fact that the United States has persecuted me half to death does not mean that it has ceased to be a great country, and the fact that my affection for it has been largely vaporized does not mean that I do not still admire it in many ways and fondly remember, like an old romance, my days of greater credulity. And I feel that given how its justice system operates and the correlation of forces between the United States and me, that I have fought my corner as well as I could to a better outcome than the prosecutors' 90-something percent success rate usually allows. And as I look forward to the end of this travesty, of my sentence, and to my departure from this country on May 5, 2012, with no scheduled or forecast date of return, I'd be happy if this story, recounted in my book excerpted below, A Matter of Principle, and confined to the facts, will help bring these very profound problems to a serious review.

The United States has six to 12 times as many incarcerated people per capita as other comparable, prosperous and sophisticated democracies: Australia, Canada, France, Germany, Japan, and the United Kingdom. The Fifth, Sixth, and Eighth Amendment guaranties of due process, the grand jury as assurance against capricious prosecution, no seizure of property without fair compensation, access to counsel, an impartial jury, prompt justice, and reasonable bail, (I enjoyed none of these rights), have all been jettisoned while the Supreme Court has been drinking its own bathwater.

Prosecutors routinely seize and freeze defendants' assets on the basis of false affidavits to prevent engagement of (avaricious) counsel of choice; there are many catch-all charges apart from the Honest Services statute that the Supreme Court rewrote in our case, that are impossible to defend, and prosecutors attack with unfeasible numbers of counts and have the last word before unsophisticated juries that have to rely on their memories of lengthy and complex proceedings and have been pulled from jury pools that have been softened up by an unanswerable prosecution lynching in the media. The public defenders are Judas Goats of the prosecutors rewarded for the number of victims they load on to the conveyor belt to the prison industry, not for the services they perform.

This book is my effort to present the facts of my case, which are quite typical, graphically but fairly, and what is written is, in all material respects, indisputable. Back as the people's invitee in a government guest house, my morale is peppy as I contemplate another, but spontaneous career change. My present regime, while Spartan, as prisons should be, and requiring much self-generated divertissement, is perfectly civilized and survivable. What has happened to me could happen to anyone, and only those with substantial resources inaccessible to the prosecutors' ability to immobilize it in ex parte actions, could see it through and not be ground to powder, ruined financially and reputationally, stigmatized, ostracized, their family and social lives ruptured.

None of that has happened to me, and if I am of the slightest assistance or encouragement to the large numbers of similarly unoffending people ground down in this system so far from what Jefferson and Madison and the other early champions of civil rights in America envisioned, it is my honor. It is a terrible, and largely unrecognized problem, gnawing at the moral soul of this country.


****

Below is my excerpt from A Matter of Principle (McClelland & Stewart 2011), exclusive to The Huffington Post.

I already regarded Rupert Murdoch as the greatest media proprietor of all time. He had come from a faraway place, had conquered the London tabloid field, buying the derelict Sun from the Mirror and swiftly outpacing the Mirror. He had cracked the Fleet Street unions that had reduced the industry to a financial shambles for decades. I was the only Fleet Street chairman publicly to acknowledge the debt we owed to Murdoch for this.
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We had a joint printing venture in Manchester and several other direct arrangements with him. I had always found his word to be fairly reliable, and he was a straightforward negotiator. He developed astonishing enthusiasms at times. Once, he telephoned me to urge me to buy the satellite transmission air space allocated to Canada by treaty with the United States in order to fill it with his American-directed signals. I replied that there would be an international dispute over which country would have the honour of prosecuting us: the Canadians for piracy or the Americans for trespass.

Personally, Murdoch is an enigma. My best guess is that culturally he is an Archie Bunker who enjoys locker room scatological humour and detests effete liberalism. I have long thought that his hugely successful animated cartoon television program, The Simpsons, is the expression of his societal views: the people are idiots and their leaders are crooks.

His airtight ruthlessness does have amusing intermissions. From time to time, he conducts a campaign to humanize himself in the media: dressed in black, with dyed orange hair, pushing a baby carriage in Greenwich Village; explaining to the Financial Times that he was on guard against errors and arrogant misjudgment in his company; claiming to be a churchgoer and mentioning his possible conversion to Catholicism.

Murdoch has no friendships, only interests; no nationality emotionally -- the company he has built is his nation. Except Ronald Reagan, and perhaps Tony Blair, he has deserted almost every politician he ever supported, including Paul Keating, Margaret Thatcher, John Major, Jimmy Carter, and Hillary Clinton, to several of whom he owed much.

In the summer of 1993, my wife Barbara and I chartered a boat with some friends in the Aegean. While loitering around the Greek islands, I read of Murdoch's plan to restore The Times' strategic position by lowering its cover price. He would start with a regional discount only. But, knowing Rupert as I did, knowing his compulsive belligerence as a competitor -- and his daring -- I was sure that if there were any encouragement in the response, he would cut prices very aggressively. Across the gleaming waters of the Aegean, with its splendid yachts and frolicking porpoises, I saw a disquieting vision of the economics of the British national newspaper industry being torn apart by my formidable competitor...

Later, when Lord Black announced his resignation as Chairman of Hollinger -- under pressure by investigators -- he'd find himself being torn apart by his former competitor:

The press release [announcing my resignation] was on the wires the following Monday morning [after my decision]. In the next 24 hours, the full force of the media hostility to anyone suspected of abusing an executive position -- and to me personally -- came pouring forth in Britain and Canada and a few sections of the United States. Murdoch's newspapers had been stoking up all through the run-up and went straight into joyous orbit. The London Sun began a widely emulated trend by announcing in a headline that I was likely to be sent to prison. Murdoch's New York Post did the same. Most of the newspapers that reprinted and even embellished the extraordinary vitriol of the British press had no idea that part of the anger with me was an ideological divide. Instead, like children wallowing in a mudbath, North American press and television picked up without any pretense of investigation every last vicious canard written in the U.K. newspapers about Hollinger, Barbara and me.

Murdoch had his own motives of course. His New York Post became the outlet for every fictional tale of my enemies and then some enthusiastically invented by the Post itself. One day it would report that I had terrorized a table at the New York restaurant La Goulou after overhearing their table chat. Another time it recounted a negative incident involving Barbara that took place, according to the Post, at a London party when she was, in fact, in New York. The inventions were tabloid gutter, which, after all, has never ceased to be Murdoch's chief stock in trade, in print, and on television. In the post-Enron frenzy, the climate was so hostile to well-paid executives it was hard to rule out anything. I had recently seen Martha Stewart, a casual acquaintance, at a social engagement, and was impressed with her tough Polish Catholic imperviousness to the criminal charges that would lead to her brief imprisonment. I had experienced some of the fury of the corporate governance movement, but rapidly pro-American as I was, I assumed that justice could be had for those who were, in fact, innocent. Whatever might happen, I was going to bear up with as much dignity as I could muster.

I had been a disdainful resister to corporate governance poseurs such as Tweedy Browne and now, denuded of defences and presumed by an eager international press to be an embezzler, came the public relations lynching.... As I was almost instantly without a reputation I was practically unable to sue anyone. Even in the countries that, unlike the United States, maintained the civil tort of defamation damages would be impossible to prove. The initial New York Times front-page story implied that I had been revealed as an embezzler.... It was one thing to convict executives if Enron and WorldCom, companies in which there had been colossal bankruptcies, a large accounting fraud, billions lost in the stock market, tens of thousands unemployed, and destruction of evidence. Executives at Adelphi appeared to have been involved in the misappropriation of billions of dollars, disguised from the auditors. Could the corporate governance movement reach such a level of ferocity that an innocent man could be prosecuted in the absence of evidence and effectively convicted and sentenced by a hostile press? I thought not, but I was in free-fall now, so swift had been the collapse of the life I had known. Watching my name crawl across the bottom of the television screen linked to accusations of fraud and "looting" on American news stations was unearthly.

Attacks came from totally unexpected quarters.... The reviews of my [just-released biography of Franklin Delano Roosevelt] continued to pour in almost universally positive, including Ray Seitz's generous review in The Times. It was a strange leitmotif to the business and public relations debacle. I will never know how much better the book would have sold if I had been able to market it effectively, nor how much more depressing the time would have been without it. But the publication at least made it more difficult to claim that I was just another sticky-fingered, grubby businessman.

In Britian, apart from book reviewers, the media assassination squads ruled the coverage. The Murdoch newspapers played the prison card for all it was worth. The Guardian and the Independent joined them.... One edition of the Financial Times, generally a fairly responsible newspaper, bannered the front-page headline that I had taken a 94-million pound dividend (about $200 million at the exchange rates of the time) from the Telegraph, a complete invention. (We did at least extract a "clarification" on this story.) The Daily Telegraph was factual but gradually gave way to showing it was no gentler than the competition....

The unseemly joy that so many seemed to take in the thought of me incarcerated in America was slightly unnerving. I reread de Gaulle's description of the fall of France, and excerpts of The Bonfire of the Vanities, to try to gain both a historian's and a novelist's insight into how to cope with a sudden, overwhelming rout and collapse, when, in de Gaulle's words, a slope becomes a fall....

On November 21, 2003, the Kravises, de la Rentas, and Jayne Wrightsman held a book launch party for me at the New York Four Seasons restaurant. I had given them plenty of opportunity to dodge it, but they insisted. The former Treasurer secretary, Robert Rubin, was holding a reception in the neighbouring room that naturally pulled a great many more people--and many of the same ones.

The presence of Candice Bergen, Joan Collins, Barbara Walters, the Kissingers, former and current mayors Ed Koch and Michael Bloomberg, World Bank president Jim Wolfensohn, Bill Buckley, long-serving district attorney Robert Morgenthau, Mrs. Nelson Rockefeller, the Ahmet Erteguns, the George Livanoses, Barry Diller and Diane von Furstenberg, Bob Silvers of the New York Review of Books, the Podhoretzes and others from Commentary magazine, and a considerable swatch of New York finance and society convinced even the New York Post that "the New York power structure rallied in support of Conrad Black." A more widely held view was that of Tina Brown, an undoubted expert on the subject of career reversals from her own and her husband's experiences, that it was more like a wake for the life we had. Both descriptions were partly true, but I nevertheless had enjoyed myself. Barbara described herself as "in rigor mortis" throughout the evening.

The dinner afterwards at Jayne Wrightsman's was a touching and exquisite occasion. Henry Kissinger, the Weidenfelds, and the Sid Basses were especially generous in their comments, about both the book and its author. But this agreeable interlude could not long distract me from the fact that I was now in a truly horrible crisis.

 
 
 
In 2007, I was convicted of fraud and sentenced to six-and-a-half years of imprisonment. At the time I was ranked as the third largest newspaper magnate in the world: Through my company, Hollinger Int...
In 2007, I was convicted of fraud and sentenced to six-and-a-half years of imprisonment. At the time I was ranked as the third largest newspaper magnate in the world: Through my company, Hollinger Int...
 
 
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11:14 PM on 10/03/2011
I have not read such a harrowing story of brutal injustice and survival against the odds since... Jefferey Archer? I weep when I think about the undeserving clots who are currently enjoying the spa baths and caviar which are rightfully yours, Mr Black.

Is there some way I can send you some money? My children will willingly go hungry for a couple of days if I explain to them that Uncle Conrad is running out of fois gras.
06:28 AM on 09/29/2011
"I had known that there were some dodgy aspects to the U.S. legal system, and feared that the plea bargain system was essentially a bazaar for the exchange of inculpatory perjury for reduced sentences or immunities, a traffic that would lead to the disbarment of prosecutors in most serious jurisdictions."

Best explanation of our criminal justice system I've read in a while. Thank You
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navretvet
and the horse you rode in on
05:30 AM on 09/29/2011
Knowing what he knows now wouldn't matter if it weren't for the fact that he's the victim. With all the resources available to a media mogul I don't, and won't, believe he didn't realize this was happening to other citizens in the country, he just didn't care. I'm sure if he ever regains his status he'll promptly forget about justice of the system and seek to rejoin the "just us" elite.
craig asia
Not part of upper-most 2%...yet!
04:32 AM on 09/29/2011
Unfortunately my compassion is limited to those that hold lessor means.
The fact that you had to sell 2 or 3 of your mansions to afford American lawyers, although sad to you, is really not a major concern to the millions of us who suffer daily to make ends meet. After all, it's men like you that have contributed to our diminished lives, and your late life realizations would be better focused on your own faults, than on bashing American society.

That said, it's nice to see that your incarceration allows you internet access and also that you are a HuffPo subscriber. Not all prisons in the world offer these modern comforts.
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oneeasyrider
E=mc2: From light you exist
01:44 AM on 09/29/2011
Like Ms. fairwayhill has mentioned previously, I also find this case to be too complicated (because I'm unfamiliar with all details) to respond directly about the plight of Mr. Black, however, there certainly is a larger more ominous issue here regarding American justice and the politics of mass incarceration. Vengeance leveled toward perceived perpetrators has been elevated to an oppressive pseudo-legitimacy by legislators who politically find any and every possible penalty to be acceptable by the voting public – leading to more and more penalties -- that simply don’t fit the crime.

Like the dotcom bubble and the housing bubble it seems we are now experiencing an incarceration bubble, with 2.4 million people incarcerated in one form or another. Seems anything is justified for prosecutors from excessive charges, to double and triple jeopardy (persecution by 2 and 3 government agencies – criminal, civil, DMV, professional licensing agencies – and don’t forget about all of the huge fines along the way) all effectively destroying lives in one form or another with no real legitimate road to redemption.

There simply isn’t enough room in this blog to address the issue properly, but "fair and impartial" treatment is no longer a reality -- due to the unchecked politics of mass incarceration.
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JBS
Part time misanthrope & full time curmudgeon
11:10 PM on 09/28/2011
Waaaaaaaah!

Would you like some cheese to go with that whine?
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HUFFPOST SUPER USER
opprobrious
More speech. Less Flagging.
08:37 PM on 09/28/2011
Note: Refer to Mr. Black as "an elderly Frasier Crane as Shakespearean tragedy" and your comment will pend indefinitely.
This user has chosen to opt out of the Badges program
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01:57 AM on 09/29/2011
I been having similar problems on this particular piece.
08:12 PM on 09/28/2011
Conrad, I wish you wouldn't use so many big words when diminutive ones would suffice :-)
07:53 PM on 09/28/2011
It's always so amusing when former prominent rightwingnut overlords discover to their personal dismay the dangers of an unfettered press with an agenda. Hello? You are shocked (SHOCKED) to learn what happens when the media targets a person? Where were you in the 1990s? Oh, wait, all that power of the biased press was just FINE when it was directed at the Clintons, right? The things they were accused of on the front pages, and exonerated of on page A32, that just merits a shrug (although you can argue it led directly to 9/11 and countless dead in war in Iraq.) Well, welcome to the reality the rest of us have lived in for quite a while now.I'd like to think your bad experiences have let you to more compassion for others and more cynicism about what's reported about them - but I doubt it.
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fairwayhill
1948 Palestine belongs to the Palestinians
07:08 PM on 09/28/2011
.. just one more comment, ... here the major issue is the plea bargain system that has corrupted the law and all the legal system. The existence of widespread plea bargains has made legislators make penal laws not based on justice, balance and proportionality of the punishment, but based on "Games theories", Prisoner's Dilemma's, etc.... thereby legislating extremely stiff punishment so the prosecutors can easily win almost all cases they prosecute through a simple plea bargaining, without even going to trial. Say, would you rather go three years to prison or risk a 25 count trial carrying a maximum total of 150 year prison term? A rational person, even if innocent will sign a guilty plea and take the 3 years. The consequence here is that a lot of innocent people are in prison just because they had to avoid the risk of spending the rest of their lives in prison. What kind of justice is that? That is no justice, and that must change.
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HUFFPOST SUPER USER
Bush-Rolled
America is being put in the clearance bin.
06:55 PM on 09/28/2011
Black lost me at: "He had cracked the Fleet Street unions that had reduced the industry to a financial shambles for decades. I was the only Fleet Street chairman publicly to acknowledge the debt we owed to Murdoch for this."
06:34 PM on 09/28/2011
I don't know enough about the Black matter to comment intelligently, but I do believe we have problems with our justice (or is it injustice?) system. My reason to comment is to say that the comments on this matter are some of the most interesting and insightful one I've ever read on HP.
06:20 PM on 09/28/2011
A billionaire and only 6.5 years? Jeez you or I would have been in for life with no chance for parole.
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fairwayhill
1948 Palestine belongs to the Palestinians
05:37 PM on 09/28/2011
This case, or cases, are too complicated for me to make a definite opinion on a first reading. Right now I don't really know what to make of it. But what seems clear is that the amount of destruction the prosecution and many judges involved is outrageously disproportionate to the actual charges he was found guilty for. Of course, the prosecutors don't care one bit, because it's all paid for by the tax payers, and the group of companies destroyed in the process, are not theirs anyway. So they wash their hands. And the sentencing for the "obstruction of justice" conviction is also completely disproportionate. The fact is that as stated by the prosecution "out of 13 boxes, a single document was relevant to the investigation." Just ONE document that was PREVIOUSLY turned over to the investigators anyway. Just for that he gets 6.5 years prison term. I'm no fan of conservative right winger Conrad Black, and in fact he is politically my enemy. But just because it is the enemy one must not loose sight of justice and one's own principles. What they have done to Conrad Black is a miscarriage of justice and a plain and simple injustice. And that's wrong.
hroark314
The handle says it all, doesn't it?
06:17 PM on 09/28/2011
I think what happened to Hollinger International was certainly a miscarriage of justice. Incompetent court appointed directors (all lawyers) bankrupted the company while collecting lavish compensation for very little work. Rather than run the company well, they preferred to focus on suing Black and his associates - much to the chagrin of the minority shareholders (who actually held a majority economic stake, but a minority of the voting rights).

However, Black's self dealing with the non-compete was really shady. I'm not a lawyer, so I don't know that it was technically illegal. However, enriching oneself by millions of dollars to the detriment of your shareholders - and then lying to the Board about it - is at the very least immoral, even if it isn't illegal (though that sounds illegal to me).

To clarify - I am a right winger who likes Black's politics and I oppose the existence of the honest services standard under which he was prosecuted. However, I can't ignore that he committed a major sin by enriching himself at the expense of his shareholders and then lying about it.
06:22 PM on 09/28/2011
I'm not so sure fairway. You may be in the rough. Take a look at some of the posts below, especially ahermit.
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fairwayhill
1948 Palestine belongs to the Palestinians
06:43 PM on 09/28/2011
>ahermit

Yea. The boxes. When you are prosecuted and indicted, you need documents to legally defend yourself. Sure there was a court order, but there was no actual obstruction of justice, as the prosecution itself declared that all those documents were useless, except just one that Conrad Black had already given them before the fact. How do you justify 6.5 years in prison? I agree that it is a misdemeanor punishable with a fine, but here we are talking about a conviction of a major crime for which he has been given a sentence of 6.5 year. That's not only ridiculous. It is an injustice, and next tine around that injustice can happen to anyone of us. It must be fixed and reversed.
hroark314
The handle says it all, doesn't it?
04:37 PM on 09/28/2011
I'm not used to defending prosecutions of corporate guys for nebulously defined white-collar crimes, and I deplore the 'honest services' standard under which he was prosecuted. However, I think Conrad Black probably committed a crime - not because he bought a bunch of FDR documents ($8 million worth), or because he was lavishly paid for a relatively sub-par performance. I think he comitted a crime when he lied to his Board of Directors telling them that, as part of a deal to sell several local newspapers, the buyer insisted on him, Conrad Black, personally signing a non-compete agreement for which the buyer would pay him $30 million (I think that's the right number). Black told the Directors the buyer had insisted on the terms. In fact, there's an e-mail chain that demonstrates Black requested it. Black told the Directors that the non-compete would not affect the price the buyer was paying. In fact, Black proposed knocking down the price by an equivalent amount in exchange for the buyer paying him to sign the non-compete agreement.

I fully acknowledge that greedy lawyers used the Conrad Black prosecution as an excuse to gut Hollinger International and enrich themselves. I bet many of the minority shareholders who first brought attention to Black's questionable self-dealings regret having done so, since the US legal system made victims of them as well. That said, I still think Black's conduct was at the very least immoral, if not illegal.