Judge declines to revoke Black's bond

Judge Amy St Eve of US District Court yesterday rejected arguments from prosecutors who said Conrad Black no longer had the assets to cover his $21 million bond and that an extradition agreement he made in a US court might not be enforceable in Canada, should Black, a 62-year-old member of Britain's House of Lords, return to his native country.

US prosecutors had earlier urged the judge to revoke Black's bond and take the former media baron into custody immediately as a "four-time convicted felon" who could flee to his native Canada and who no longer has the assets to cover the bond.

The statements came in a motion filed prior to a hearing on whether Black should remain free until he is sentenced on November 30th following his conviction on fraud and obstruction charges.

"Black's conduct from the outset of these proceedings has demonstrated a lack of respect for the conditions of his release and the entire judicial process," the motion signed by federal attorney Patrick Fitzgerald said.

"Simply put, Black faces the potential of spending the rest of his life in a US prison," for a range of 24 to 30 years, it added.

It also said Canadian officials had confirmed that if Black, now a British citizen, returned to Canada, an agreement made in a US court waiving extradition would not be enforceable under Canadian law.

The motion also said Black faces forfeiture of $6.1 million from the sale of his Park Avenue apartment and that he is in default on the mortgage for his Palm Beach, Florida, mansion. Both assets were used to secure the bond.

The Canadian-born Black surrendered his British passport (he renounced his Canadian citizenship in 2001 in order to become a British lord) to the judge last Friday, shortly after a jury delivered its verdict.

He was found guilty on three fraud counts and one count of obstructing justice in swindling $2.9 million from former media giant Hollinger International. Three fellow former executives were also convicted.

The defendants had faced a total of 16 counts alleging they defrauded their former company of some $60 million in fees that should have benefited shareholders, abused company perks and filed false tax returns.

After the verdict, prosecutor Eric Sussman immediately asked that Black be jailed, calling him a flight risk who has misrepresented his wealth. Black's lawyers disagreed, arguing that even if he wanted to escape, Black was too widely known and was eager to work on an appeal.

Prosecutors argued earlier that Black not only failed to keep up payments on his $32 million Palm Beach estate but has hidden assets by transferring them to his wife, columnist Barbara Amiel Black.