Verdicts will help civil cases vs. Black

GUILTY | Fallen media mogul now faces lawsuits from SEC and Sun-Times Media Group

Now come the lawsuits.

With Conrad Black convicted of defrauding Sun-Times Media Group, civil lawsuits that have been on hold can proceed against the company's former CEO and other former executives.

Sun-Times Media Group has a $500 million case against Black, his wife, Barbara Amiel Black, his Canadian holding company Hollinger Inc. and others. The guilty verdicts should help the case, according to John Bell, an attorney with Johnson & Bell who handles civil cases.

"A criminal conviction is based upon a criminal standard, which requires proof beyond a reasonable doubt, which is a higher burden of proof than in a civil case," said Bell. "In a civil case, the plaintiff only has to prove by a preponderance of the evidence that the allegations are more likely true than not true. To get a conviction which is at a higher burden of proof it certainly will strengthen the civil case as to those counts."

Black also faces a lawsuit from the U.S. Securities and Exchange Commission, which seeks to bar him from serving as a corporate officer or director, as well as payback of fraud proceeds.

Hollinger Inc., meanwhile, has a countersuit against the company that owns the Chicago Sun-Times.

Black, 62, of Toronto, was convicted by a federal jury in Chicago on Friday of three counts of fraud and one count of obstruction of justice as part of a scam to defraud shareholders. Also convicted were former company executives John Boultbee, 64, Peter Atkinson, 60, and Mark Kipnis, 59.

Gordon A. Paris, chairman of the board of directors special committee for Sun-Times Media Group, called the criminal convictions "another step toward justice and restitution for the company and its shareholders."

"While there are no assurances in any legal proceeding, we continue to be very confident that the company will prevail in its civil suit," Paris said. The company believes that the convictions, along with the sworn testimony and admissions in the criminal case, provide substantial additional evidence in support of its claims.

Black could face 15 to 20 years in prison, as well as forfeiture of millions of dollars, while the other defendants face seven to 10 years each, according to the prosecution. Criminal defense attorneys who are not involved in the case say each defendant faces at least a year.

Black, who plans to appeal, had promised publicly and frequently before the verdict that he would be vindicated. His defense lawyer claimed that Black didn't steal from the company, the company was stolen from him.

Sun-Times Media Group Inc. board member Herbert Denton said the guilty verdict removes the threat that Black will attempt to regain control of the newspaper publisher.

Coming next for Black and his co-defendants are decisions on bond and forfeiture. Prosecutors have moved to revoke Black's $21 million bond, saying it could take six to seven years to extradite Black if he were to go to Canada.

A hearing on bond for Black is set for Thursday before U.S. District Judge Amy St. Eve. The other defendants are free to return home to await sentencing.

Sentencing and forfeiture issues are set for all defendants Nov. 30.

Contributing: Abdon Pallasch, Francine Knowles and Bloomberg News