The federal judge overseeing the upcoming trial of toppled press baron Conrad Black on Wednesday demanded a fuller accounting of his convoluted finances, but did not indicate if she would revoke his $20 million bond.
Prosecutors have argued that Black may have hidden assets that would make him a flight risk on a $20 million bond keeping him out of jail pending his scheduled March 2007 trial on fraud, racketeering and other charges.
“My point here is not to micromanage Mr. Black’s finances. My point is to find out if there have been misrepresentations to this court,” U.S. District Judge Amy St. Eve told Black’s U.S. lawyer.
Black, a Canadian-born member of Britain’s House of Lords, is accused along with other former executives of looting Chicago-based newspaper publisher Hollinger International Inc. , and with exploiting company perks.
The judge questioned how Black, who has no apparent income, was able to meet more than $200,000 in current monthly expenses, including a $114,000 payment on a mortgage for a Toronto house, $9,000 for gardening, and $8,000 in property taxes, which were detailed in a court-sealed accounting of Black’s finances delivered to the court this week.
Those expenses may or may not include expenses on Black’s Palm Beach, Florida, mansion, which is listed as for sale for $35 million, now that a lien on the property by Canadian tax authorities is being lifted, Black’s lawyer, Edward Genson, said.
Though a mortgage on the Florida mansion is in foreclosure, part of the home’s value secures Black’s bond.
St. Eve demanded a list of Black’s assets and income, signed by him, an explanation of why the value of his stake in Canadian newspaper publisher Horizon Publications somehow multiplied in value since an estimate offered at his bond hearing in November, and the amount of loans to Black from his wife, Barbara Amiel.
Genson said Black had sold off assets, won a settlement over payments to two law firms, and borrowed money from his wife.
“He does not have any liquidity, other than what you see here (in the accounting statement). There is no other money,” Genson said.
He added that Black’s financial picture was clouded because of the strained relationship with former partner David Radler, who headed Horizon and other properties and who has pleaded guilty to fraud and agreed to testify against Black and the other defendants in exchange for a lesser sentence.
Federal prosecutor Eric Sussman countered that Black had realized nearly $19 million from the sale of newspaper holdings held with Radler. “With enemies like that ...,” Sussman said.
