Black 'lied to cover $60m theft'

Conrad Black once led one of the world's top newspaper groups

Media tycoon Conrad Black and key business associates lied in an effort to cover up the "systematic" theft of $60m, prosecutors have alleged.

In closing arguments in the British peer's fraud trial, lawyers accused Lord Black and others of creating a fake paper trail to hide their actions.

The former boss of newspaper publisher Hollinger is accused of pocketing money owed to investors, which he denies.

The jury is expected to retire to consider its verdict in the next week.

'Cover story'

Closing arguments from both sides are expected to last six days, which would take the trial into a 15th week.

Summing up, prosecutors told the court that Lord Black and his co-defendants - former Hollinger employees Jack Boultbee, Peter Atkinson and Mark Kipnis - deceived Hollinger's board of directors about the true nature of the money they took out of the business.

They had a duty to shareholders but their duty was to each other Julie Ruder

Defence lawyers have argued that the company authorised "non-competition" payments to Lord Black and colleagues as part of the sale of newspaper titles.

But prosecutors claim the deals - designed to reimburse Hollinger for not competing with titles it sold - were not approved and that Lord Black enriched himself at the firm's expense.

"We are not here because somebody made mistakes," Julie Ruder told the court.

"We are here because...they systematically stole $60m."

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

The accused attempted to cover their tracks, she added, by claiming that buyers of Hollinger titles had insisted on the agreements when, in reality, many had not.

"It is time to expose this cover story for the lie that it is," she added. "They had a duty to shareholders but their duty was to each other. Their loyalty was to each other."

Lord Black and his co-defendants deny any wrongdoing but the tycoon faces decades in jail if convicted on charges of fraud, obstruction of justice and racketeering.

The trial has been dominated by the evidence of former Hollinger executive David Radler, who accused Lord Black of siphoning off money for himself over a number of years.

Mr Radler, Lord Black's most trusted aide for 30 years, pleaded guilty to participating in the fraud in return for a reduced sentence and co-operating with the authorities.