Media tycoon Conrad Black has denied criminal fraud charges declared yesterday in the United States against the former publisher and his former associates.
Prosecutors say the executives illegally diverted $84 million from the $2.1 billion sale of hundreds of Canadian newspapers.
"All in all what has happened here has been the grossest abuse by officers or directors and insiders," attorney Patrick Fitzgerald told a briefing.
"On those occasions when they did go to the audit committee or the board of directors, they told lies and when those became apparent, they told further lies," Mr Fitzgerald added.
In a statement released through his lawyer last night, Mr Black said it will be shown he acted within the law at all times. "He is confident that, if given a full and fair opportunity to defend himself, he will be found innocent," his lawyer said.
Arrest warrants were issued for Mr Black and two of the former executives, but officials said they would be given an opportunity to appear voluntarily in federal court in Chicago.
Mr Fitzgerald is also the special prosecutor investigating how the name of a covert CIA agent was leaked after her husband accused the White House of misrepresenting pre-Iraq war intelligence.