Black associate grilled on 'lies'

David Radler, the chief prosecution witness in Lord Black's fraud trial in Chicago, admitted previously lying about so-called "non-compete" payments.

Earlier in the week, he testified that Lord Black, his former boss, had initiated the scheme to enrich himself.

Media mogul Lord Black denies all charges of fraud and racketeering.

Lynchpin

In his opening argument, defence lawyer Edward Greenspan tried to discredit Mr Radler's testimony, seen as the lynchpin to the prosecution's case, and portray him as one of the main culprits in the scandal that rocked Hollinger.

"I am not lying"
David Radler, in court

Questioned whether he lied to a special committee set up by the company in 2003 to investigate allegations of fraud among its executives, Mr Radler admitted he did.

He also admitted lying to the same prosecutor responsible for putting him on the stand - in exchange for a reduced jail term of 29 months - to save himself and "others".

"So, you might be lying now," Greenspan pressed. "Lying to save yourself?"

"False. I am not lying," Mr Radler responded.

'Improper bonuses'

Lord Black and his accomplices - fellow Hollinger executives - are accused of effectively stealing $60m over a number of years through "non-compete" deals.

These are agreements designed to recompense a company for not competing with an asset it has sold.

The payments came at a time when Hollinger, which at its height owned Britain's Daily Telegraph, the Chicago Sun-Times and the Jerusalem Post, was selling hundreds of newspapers in the US and Canada.

Prosecutors allege these payments were actually improper bonuses.

Mr Radler has already told the Chicago court how he knew a scheme his boss hatched to pay themselves millions of pounds was wrong and how he "regrets" not alerting the firm's board of directors.

Lord Black has contended that Hollinger International's board approved all the payments in question.

If convicted, he faces a jail sentence of more than 100 years and millions of pounds in fines.