RADLER GETS 29 MONTHS
REGRETS PAIN HE CAUSED
Chief Business Correspondent CHICAGO • David Radler, longtime business associate of Conrad Black, has agreed to a 29month prison term and a fine of US$250,000 in return for a guilty plea to one count of mail fraud and his co-operation in a continuing criminal investigation, according to a settlement filed in U.S. federal court in Chicago yesterday.
In a 32-page plea agreement, Radler, 63, also agreed to provide information and future testimony to the Securities and Exchange Commission in Washington as part of the regulator’s civil probe into alleged fraudulent activities of Hollinger International Inc.
Six other criminal counts of fraud in a criminal indictment filed last month by the U.S. Attorney for the Northern District of Illinois against the former chief operating officer of Hollinger International were dropped.
During the arraignment, Radler spoke softly to Judge Amy St. Eve, saying “Yes, I do” when asked if he understood the implications of his voluntary guilty plea.
After the 25-minute hearing ended, a spokesman for the former publisher of the Chicago SunTimes released a statement on behalf of Mr. Radler: “ I regret the obvious pain this whole affair has caused for my family, friends and business colleagues, and I am relieved that I can now begin the process of making amends and moving on with my life.”
As Radler was taken to be fingerprinted and photographed, his U.S. lawyer, Anton Valukas, described the guilty plea as Radler’s “first step in making amends for what has taken place.”
To that end, sources say Radler is expected to settle remaining legal claims against him, including civil charges brought by the SEC involving non-compete payments and allegations of “ self- dealing” in a number of transactions that were concealed from the company’s board of directors and its shareholders.
As well, Radler is named with others, including Lord Black, in a $US425-million civil lawsuit filed by Hollinger International that claims they looted the company for their personal benefit.
Radler held sporadic discussions last summer to resolve his portion of the Hollinger International lawsuit, but talks ended before he began co-operating with federal prosecutors in Chicago in July.