Fraud--Conrad Black

Almost three months to the day that two of his business associates were indicted on mail and wire fraud charges, Lord Conrad Black has himself been indicted on mail and wire fraud charges.^[1] Three other individuals—Hollinger Inc. CFO John Boultbee, Hollinger general counsel Peter Atkinson, and Hollinger corporate counsel Mark Kipnis—were also indicted, along with Ravelston, Lord Black’s former company.^[2] Mr. Boultbee and Lord Black were charged with 8 counts of mail and wire fraud, Mr. Atkinson with 6 charges of mail and wire fraud, Mr. Kipnis with 9 charges of mail and wire fraud, and Ravelston with the same 7 counts of mail and wire fraud it faces when charges were brought against it in August.^[3]

The Schemes
According to Bloomberg News, there were two schemes involved in the charges. The first involved the diversion of $51.8 million from Hollinger International’s sale of assets to CanWest Global Communications Corp. in 2000.^[4] The second scheme involves the abuse of company perks such as the corporate jet, two luxury apartments in New York, and a lavish birthday party for Lord Black’s wife.^[5]

Mail Fraud
We have previously discussed mail fraud here.

Wire Fraud
Under 18 U.S.C. § 1343, it is a crime for a person to devise an artifice or scheme to defraud, and then use the telecommunications technology of the United States to carry out that fraud.

The punishment for a violation of section 1343 is a fine, imprisonment for up to 20 years or both.
As Lord Black is currently located in the United Kingdom, US Attorney Patrick Fitzgerald is giving Lord Black the opportunity to turn himself in.^[6] If Lord Black chooses not to, his extradition will be requested, the details of which we discuss here.

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[1] Conrad Black, Ex-Hollinger Chief, Indicted for Fraud, Bloomberg, Nov. 17, 2005, available here.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.