U.S. Confirms Criminal Probe of Hollinger
From Associated Press
Federal prosecutors are conducting a fraud investigation into Hollinger Inc., newspaper tycoon Conrad Black and his former top deputy, David Radler.
The government acknowledged the criminal investigation for the first time Tuesday in court papers in which it asked to intervene in a Securities and Exchange Commission lawsuit filed in November against the company, Black and Radler.
The SEC alleges that the men engaged in a “fraudulent and deceptive scheme” to take cash and other assets from Chicago-based Hollinger International, the parent company of the Chicago Sun-Times, and conceal the actions from shareholders. Hollinger, a Toronto-based holding company, has voting control over Hollinger International.
