Chief witness set for Black trial

A verdict is expected next month

The fraud trial of media baron Lord Black is set to reach a key stage with the appearance of former aide and now chief prosecution witness on the stand.

David Radler will be questioned by Lord Black's lawyers this week as the trial enters its eighth week.

Once head of operations at Hollinger International, Radler admitted fraud in 2005 in return for a lesser sentence and co-operating with the authorities.

Lord Black denies charges of fraud, racketeering and obstructing justice.

'Proving intent'

The former owner of the Daily Telegraph newspaper and his co-defendants - Hollinger International executives John Boultbee, Peter Atkinson and Mark Kipnis - are accused of enriching themselves at the expense of shareholders of the publisher.

Radler is going to have to be extremely specific about the conversations he had with the defendants Hugh Totten, Chicago attorney

Prosecutors allege they pocketed more than $60m (£31m) in payments from the sale of various newspaper assets, in a move tantamount to theft.

Lord Black, formerly Hollinger's chief executive, and his co-defendants have denied any wrongdoing.

The British peer has argued that the firm's board of directors was aware of the payments - made to recompense Hollinger for not competing in the future against newspapers they were selling - and approved them.

THE CHARGES Criminal charges 15 charges of fraud one of obstruction of justice one of racketeering Federal prosecutors allege Lord Black Fraudulently received non-compete fees from the sale of Hollinger International assets Deprived the company of his honest services Repeatedly benefited himself at the expense of the company and its public shareholders through the abuse of company perks Other executives on trial John Boultbee - former chief financial officer Peter Atkinson - former general counsel Mark Kipnis - former corporate counsel and secretary

Radler, who worked alongside Lord Black for more than 20 years as his second in command, has agreed to pay $29m to settle charges against him.

Legal experts said Radler's testimony would be crucial to establishing whether the accused deliberately set out to defraud the business.

"Radler is going to have to be extremely specific about the conversations he had with the defendants and how they planned to get away with this," said Hugh Totten, a Chicago attorney who is following the trial.

Defence lawyers are expected to portray Radler as a key instigator of events at Hollinger International, which owned titles such as the Jerusalem Post and Chicago Sun-Times.

Questioning of key witnesses has so far focused on whether the buyers of Hollinger papers requested "non-compete" payments and whether they were either disclosed to the company's board or included in its financial statements.

David Radler received a 29-month sentence for mail fraud

James Thompson, formerly head of Hollinger International's audit committee, told the court on Thursday that he had never approved the payments.

But defence lawyers have queried the legal advice given to Hollinger's board over the issue, which stated the payments did not have to be revealed.

Lord Black is also accused on exploiting company resources such as corporate jets and hospitality budgets for his own personal use.

If convicted on all counts, Lord Black faces a jail sentence of more than 100 years and heavy fines.