Dec 17, 2007 10:40 am US/Central
Radler Gets 29 Months For Hollinger Scheme
CHICAGO (AP) ―
-
-
F. David Radler (File)
CBS
F. David Radler, former publisher of the Chicago Sun-Times and No. 2 man in the once-powerful Hollinger International newspaper empire was sentenced Monday to 29 months in prison for his role in stealing millions of dollars from Hollinger shareholders.
"I'm sorry for what I've done," said Radler, 65, who had pleaded guilty to fraud and testified against his longtime business partner and head of Hollinger, Conrad Black, in return for a lenient sentence.
Radler, who already has paid millions in restitution, also was fined $250,000.
Black was sentenced last week to 6 1/2 years in prison for swindling Hollinger shareholders out of $6 million. Although prosecutors had sought a much harsher sentence for Black, U.S. District Judge Amy J. St. Eve said Black's sentence should be closer to that of Radler, calling them "equally culpable."
St. Eve on Monday told Radler he had breached his duty, noting he "took a lot of money from Hollinger International at great expense to the company and the shareholders." But the judge also acknowledged his cooperation with prosecutors.
"You certainly have tried to right your wrongs," she told Radler, who must begin serving his sentence Feb. 25. St. Eve said she would recommend a Pennsylvania prison.
Radler's attorney, Anton Valukas, said the sentencing brings relief for his client.
"This is the first day of the rest of his life," Valukas said after the hearing.
Black and Radler built Hollinger from scratch, starting with a tiny, money-losing, English language paper in French-speaking Canada, the Sherbrooke Record. In time, the company became an international colossus.
Black, Radler and three co-defendants were charged with siphoning money out of the company through payments made by buyers of Hollinger International community papers in return for promises not to compete with the new owners. Prosecutors said such payments should go to shareholders.
Radler pleaded guilty and made his deal with prosecutors while Black and his other co-defendants, Canadian executives Peter Atkinson and Jack Boultbee and Chicago attorney Mark Kipnis, demanded a jury trial.
They originally were charged with swindling shareholders out of an estimated $60 million.
In the end, Black was acquitted of nine of the counts against him, including racketeering, and convicted of siphoning off $6 million through bonuses disguised as such "non-compete" payments. Black also was convicted of obstruction of justice for removing documents from his offices.
His co-defendants also were sentenced last week.
Atkinson was sentenced to two years and fined $3,000. Boultbee was sentenced to 27 months, ordered to pay $152,500 restitution and fined $500. Kipnis was placed on probation for five years with six months of house arrest. He was also ordered to perform 275 hours of community service. The three men were also ordered to share in the forfeiture.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Click to enlarge
Stumble It!
