Jury selection begins this wednesday in Chicago for Patrick Fitzgerald's next big trial. Lord Conrad Black is being tried for defrauding shareholders of the Hollinger Corporation of over
$60 Million. International Herald Tribune
Basically, among other things, he is accused of improperly diverting company funds for his personal use. How could the board of directors allow this to happen?
Let's ask Richard Perle former member of Hollinger's executive committee and Chairman of Hollinger Digital.
Canadian born, but now English Life-Peer Lord Conrad Black was the founder and Chairman of the Hollinger Group. At one time, Hollinger was the third largest English language newspaper organization in the world (following Murdoch and Gannett) owning the Chicago Sun-Times, London Telegraph, Jerusalem Post, among others.
After years of poor stock performance minority shareholders commissioned a review by Richard Breeden, former head of the US Securities and exchange commission. Breeden found that Black and other insiders diverted $400 million, or 95.2 percent of Hollinger's net income from 1997 to 2003, from the company. The report also singled out one director of the Executive Committee, Richard Perle.
Bilderbergers Perle and Black have a relationship going back to the early '90's. Black made Perle chairman of Hollinger's Internet group, which was largely unsuccessful, but paid Perle $3M a year in salary. Perle and Black have since fallen out.
The report had harsh words for members of the board's audit committee, especially Richard Perle, a former Pentagon official who has also headed the Defense Policy Board, an advisory group to the US military.
"It is difficult to imagine a more flagrant abdication of duty than a director rubber-stamping transactions that directly benefit a controlling shareholder without any thought, comprehension or analysis," the report said.
"In fact, many of the consents that Perle signed as an Executive Committee member approved related-party transactions that unfairly benefited Black and Radler, and cost Hollinger millions Richard Perle Blasted For Role in Hollinger scandal
Prince of Darkness
Further:
It stopped short of accusing them of breaching their fiduciary duties to shareholders, which would have made them legally liable for their actions. However, it did claim that Richard Perle, the former chairman of the Pentagon’s Defence Policy Board and a leading neo-Con in the Bush camp, was personally liable for "his abject failure to fulfil his fiduciary duties". Perle evidently regarded his post as head of an executive committee at Hollinger International as a sinecure. According to the report, he had a "head in the sand" approach to his job.
He repeatedly failed to "read, evaluate, discuss or attempt to understand" documents that he signed that facilitated Black’s alleged wrongdoing. "Perle’s own description of his performance on the executive committee was stunning. In fact, he admitted that he generally did not read [consents and resolutions he signed] or understand the transactions to which they applied," the investigating committee stated.
The report accused Perle, as former chairman and chief executive of Hollinger Digital Trireme Partners, of enriching himself at the expense of the company. He received $1.8 million in bonuses as well as his $3 million salary, despite the fact that company lost $67.8 million. The committee demanded that Perle repay the money that he received from the firm.
Conrad Black and Hollinger International: a financial oligarchy out of control
Prince of Darkness
Perle is not under indictment, but he may be called to testify. The judge in the case is GWB appointee and Starr Commission veteran Amy St. Eve. Fitzgerald is not expected to have an active role.