Conrad Black indicted on new fraud charges
Black accused of cheating Hollinger's U.S. and Canadian shareholders.
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WASHINGTON (CNN) -- The former chairman of Hollinger International, the largely dismantled global publishing empire, has been indicted in new fraud charges returned by a federal grand jury in Chicago, the U.S. Justice Department announced Thursday.
Conrad Black and three other former executives have been charged in an 11-count indictment for an alleged scheme that cheated U.S. and Canadian shareholders from the $2.1 billion sale of several hundred Canadian community newspapers, officials announced.
The indictment alleges two new fraud schemes in addition to a separate scheme alleged in an earlier indictment, which involved the diversion of $32 million from the Hollinger newspaper holding company.
The new indictment alleges the former Hollinger chairman and CEO and his alleged co-conspirators made hidden payments to themselves that were termed "non-competition" fees, prosecutors said.
Black is also charged with abusing company perks, including a vacation with his wife in the South Pacific and luxury homes in New York, according to the indictment.
Co-defendants named in the indictment were former executive vice president of Hollinger Peter Atkinson, accountant John Boultbee, and attorney Mark Kipnis.
The investigation was led by U.S. Attorney for Northern Illinois Patrick Fitzgerald, best known as the special counsel in the CIA leak investigation in Washington.
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