Black faces SEC fraud charges

NEW YORK – The U.S. Securities and Exchange Commission has filed a lawsuit against Conrad Black, the ousted chief executive officer of Hollinger International Inc., and his top deputy, David Radler, accusing the men of using the newspaper publisher as their “personal piggy bank” over a period of four years, the SEC announced Monday.

The SEC accused Black and Radler of engaging in a “fraudulent and deceptive scheme” to take cash and other assets from Hollinger International from 1999 to 2003 and then concealing their actions from the company’s shareholders.

The suit adds to the legal troubles for Black, who also is being sued by his own company for the recovery of money it says he improperly diverted to himself and his associates. That lawsuit makes broader accusations against Black and claims that he caused more than $500 million in damages to the company.

The SEC suit focuses on a narrower time period and seeks civil penalties against Black and an order barring him and Radler from serving as officers or directors of public companies.

Black was removed as chairman and CEO of Hollinger International after an internal investigation found that he and his associates had schemed to siphon away millions of dollars in company funds. However, he remains the company’s controlling shareholder.

“Black and Radler abused their control of a public company and treated it as their personal piggy bank,” the SEC’s director of enforcement, Stephen Cutler, said in a statement.

Hollinger publishes the Chicago Sun-Times and The Jerusalem Post.