Former newspaper magnate Conrad Black, once renowned for his lavish lifestyle and flamboyant public persona, has been sentenced to 6½ years in prison for stealing millions from his shareholders.
The former owner of the Daily Telegraph, and numerous papers in the United States, Canada and Israel, was convicted earlier this year on three counts of mail fraud and one count of obstruction of justice in connection with his former media empire Hollinger International.
Because Black (63) renounced his Canadian citizenship to claim a British peerage, he cannot opt to serve his sentence in Canada and is likely to be sent to a low-security prison in Florida.
Judge Amy St Eve also ordered Black to forfeit $6.1 million in profits from Hollinger and pay a $125,000 fine, although he will be allowed to keep his Florida mansion and the proceeds from the sale of his New York apartment. Under federal law, he will not be eligible for parole until after he serves 5½ years of his sentence.
"Mr Black, you have violated your duty to Hollinger International and its shareholders," the judge said. "I frankly cannot understand how somebody of your stature . . . could engage in the conduct you engaged in and put everything at risk, including your reputation."
Black and three other former executives of Hollinger International were convicted in July of illegally receiving payments as part of the company's sales of US newspapers. A videotape showing Black personally removing 13 boxes from his Toronto office in the middle of the government's fraud investigation led to his conviction for obstruction of justice.
Black owes his downfall to testimony from his former business partner, David Radler, who told the court that Black masterminded a scheme to defraud Hollinger through bogus agreements not to compete with the new owners of the newspapers it sold.
Some of these "non-compete" payments, which allowed Black, Radler and two other executives to pocket at least $32.2 million, were not disclosed to shareholders or Hollinger's audit committee.
Before sentence was passed, Black, who maintained his innocence throughout his trial, expressed "very profound regret and sadness" for the Hollinger shareholders who lost $1.6 billion in shareholder value, but stopped short of apologising.
Black's lawyer, Jeff Steinback, urged the judge to show compassion, arguing that his client's removal of documents was an act of frustration rather than an attempt to obstruct justice.
