Ex-Hollinger lawyer Kipnis pleads not guilty

A former lawyer for Hollinger International, which owns the Chicago Sun-Times, pleaded not guilty Wednesday to charges he helped bilk more than $32 million from the company. But the newspaper's former publisher plans to plead guilty on Sept. 15, according to his lawyer.

Mark Kipnis, 58, entered the not-guilty plea at his arraignment -- the first court appearance in a criminal investigation of former Hollinger executives. The U.S. government indicted Kipnis and former Sun-Times Publisher David Radler last week, along with a company partly owned by Radler. Some lawyers involved speculate prosecutors' ultimate target is former Hollinger Chairman Conrad Black.

Black has not been charged to date. But Radler is cooperating with prosecutors, U.S. Attorney Patrick Fitzgerald said last week. On Sept. 15, Radler will appear before Judge Amy St. Eve and admit to specific criminal acts, sources said. Prosecutors and Radler's defense team appear still to be negotiating what he will admit to.

"We are in the process of discussions with the U.S. Attorney's office," Radler's lawyer Anton Valukas told St. Eve.

Also on Sept. 15, lawyers will reveal Radler's proposed sentence. Though Radler, 63, faces decades in prison, a lawyer close to the case said the ex-publisher could receive as little as two years for cooperating.

Last week's indictment charged Radler and Kipnis with funneling illegal payments to other companies controlled by Radler and Black. Kipnis allegedly facilitated the deals by preparing documents and arranging wire transfers.

Kipnis joined Hollinger International in 1998 as general counsel, vice president and secretary, having formerly been a partner at the law firm Holleb & Coff.

Kipnis resigned from Hollinger International in late 2003. He now has an office in Northbrook, where he practices real estate law.

On Wednesday, St. Eve set Kipnis' bond at $250,000 but released him without having to pay. St. Eve also forced Kipnis to surrender his passport.

Stephen Bronis, a defense lawyer in Miami, said prosecutors sometimes indict lawyers so target defendants cannot claim they acted on their lawyer's advice. The maneuver also allows prosecutors to overcome attorney-client privilege, he said.

But sometimes the indictments backfire, he said. A jury acquitted Tyco International lawyer Mark Belnick last year of charges he helped loot the company, for example.

"These cases are not easy for the government," Bronis said.

Prosecutors have also charged Ravelston Corp., a Canadian company owned by Black and Radler.