Conrad Black

The Right Honourable Conrad Moffat Black, Baron Black of Crossharbour, OC, PC
Personal details
Born	(1944-08-25) August 25, 1944 Montreal, Quebec, Canada
Nationality	British (born Canadian, later renounced)
Height	6' 1
Spouse(s)	Joanna Hishon (1978-1992) Barbara Amiel, Baroness Black of Crossharbour (1992—Present)
Children	2 sons, 1 daughter
Parent(s)	George Montegu Black II, Jean Elizabeth Riley
Education	B.A. Carleton University, LL.L. Université Laval, M.A. McGill University
Occupation	former newspaper publisher, author, columnist, investor

Conrad Moffat Black, Baron Black of Crossharbour, PC, OC, KCSG (born 25 August 1944, Montreal, Quebec) is a historian, columnist and publisher who was for a time the third biggest newspaper magnate in the world. He is currently incarcerated at the Coleman Federal Correctional Complex in Florida,

Before investigation by regulators and investors, Black controlled Hollinger International, Inc. Through affiliates, the company published major newspapers including The Daily Telegraph (UK), Chicago Sun Times (USA), Jerusalem Post (Israel), National Post (Canada), and hundreds of community newspapers in North America.

Personal relationships and family

Conrad Black was born in Montreal to a wealthy family originally from Winnipeg. His father, George Montegu Black, Jr., C.A., was the president of Canadian Breweries Limited, an international brewing conglomerate that had earlier absorbed Winnipeg Breweries (founded by George Black Sr.). Conrad's Black mother was the former Jean Elizabeth Riley, a daughter of Conrad Stephenson Riley, whose father founded the Great-West Life Assurance Company, and a great-granddaughter of an early co-owner of the Daily Telegraph.

Conrad Black's first marriage was to Joanna Hishon of Montreal, who worked as a secretary in his brother Montegu's brokerage office. The couple had two sons and a daughter. The couple separated in 1991. Their divorce was finalized in 1992; the same year Black married Watford-born journalist Barbara Amiel. Black flattered Amiel, describing her variously as "beautiful, brilliant, ideologically a robust spirit" and "chic, humorous and preternaturally sexy". Courtroom evidence revealed that the couple exchanged over 11,000 emails.

Early life and career

Black was first educated at Upper Canada College (UCC), during which time, at age 8, he purchased shares in General Motors. Six years later, according to Tom Bower's biography Dancing on the Edge, he was expelled from UCC for selling stolen exam papers. He then attended Trinity College School where he lasted less than a year, being expelled for insubordinate behaviour. Black eventually graduated from a small, now defunct, private school in Toronto called Thornton Hall, continuing on to post-secondary education at Carleton University (History, 1965). For a time, he attended Toronto's Osgoode Hall Law School of York University; however, his studies ended when he failed exams after first year. He completed a law degree at Université Laval (Law, 1970), and in 1973 completed a Master of Arts degree in history at McGill University. Black's thesis, later published as a biography, was on Quebec premier Maurice Duplessis.

Biographer George Toombs said of Black's motivations: "he was born into a very large family of athletic, handsome people. He wasn't particularly athletic or handsome like they were, so he developed a different skill - wordplay, which he practised a lot with his father." Black became involved in a number of businesses, mainly publishing newspapers, but briefly in mining. In 1966 Black bought his first newspaper, the Eastern Townships Advertiser in Quebec. Following the foundation, as an investment vehicle, of the Ravelston Corporation by the Black family in 1969, Black, together with friends David Radler and Peter G. White, purchased and operated the Sherbrooke Record, the small English language daily in Sherbrooke, Quebec. In 1971, the three formed Sterling Newspapers Limited, a holding company that would acquire several other small Canadian regional newspapers.

Corporate ownership through holding companies

George Black died in June 1976, leaving Conrad and his older brother, Montegu, a 22.4% stake in Ravelston Corp., which by then owned 61% voting control of Argus Corporation, an influential holding company in Canada. Argus controlled large stakes in 7 major Canadian corporations, Labrador Mining, Noranda Mines, Hollinger-Argus, Standard Broadcasting, Dominion Stores, Domtar and Massey-Ferguson.

Through his father's holdings in Ravelston, Conrad Black gained early association with two of Canada's most prominent businessmen: John Angus "Bud" McDougald and E. P. Taylor, president and founder of Argus, respectively. Following McDougald's death in 1978, Conrad Black paid $30-million to take control of Ravelston and thereby, control of Toronto-based Argus. This controversial arrangement resulted in accusations that Black had taken advantage of the aging widows of Ravelston Directors McDougald and Eric Phillips. Other observers admired Black for marshaling enough investor support to win control without committing a large block of personal assets.

Some of the Argus assets were already troubled, others did not fit Black's long term vision. Black resigned as Chairman of Massey Ferguson company in 1979, after which Argus donated its shares to the employee's pension funds (both salaried and union.) Hollinger Mines was then turned into a holding company that initially focused on resource businesses.

In 1981 Norcen Energy, one of his companies, acquired a minority position in Ohio-based Hanna Mining Co. A filing with the U.S. Securities and Exchange Commission stated that Norcen took "an investment position" in Hanna. However, the filing failed to disclose that Norcen's board planned to seek majority control. Black subsequently was charged by the SEC with filing misleading public statements, charges that were later withdrawn by "consent decree" after Black and Norcen agreed not to break securities laws in the future.

Dominion pension dispute

In 1984, Dominion Stores Ltd. withdrew over $56 million from the Dominion workers' pension plan surplus without consulting plan members. The firm said it considered the surplus the rightful property of the employer (Dominion Stores Ltd.). The Dominion Union complained, a public outcry ensued, and the case went to court. The Supreme Court of Ontario eventually ruled against the company, and ordered the company to return the money to the pension fund, claiming that though the most recent language in the plan suggested the employer had ownership of the surplus, the original intention was to keep the surplus in the plan to increase members' benefits. The company appealed the case all the way to the Supreme Court of Canada, which upheld the lower court's decision.

Industrial holdings shifted to publishing

Over time, Black focused formerly diverse activities of his companies on newspaper publishing. Argus Corporation, once Canada’s most important conglomerate, divested itself of interests in manufacturing, mining, retailing, banking and broadcasting. This enabled Canadian writer John Ralston Saul to argue in 2008, "Lord Black was never a real "capitalist" because he never created wealth, only dismantled wealth. His career has been largely about stripping corporations. Destroying them."

Growth and divestment of press holdings

In 1985, Andrew Knight, then editor of The Economist, asked Black to invest in the ailing Telegraph Group. By this investment, Black made his first entry into British press ownership. Five years later, he bought the Jerusalem Post, and subsequently fired the majority of its staff. By 1990, his companies ran over 400 newspaper titles in North America, the preponderance of them small community papers.

Hollinger bought a minority stake in the Southam newspaper chain in 1993 and acquired the Chicago Sun Times in 1994. Hollinger International shares were listed on New York Stock Exchange in 1996, at which time the company boosted its stake in Southam to a control position. Becoming a public company trading in the U.S. has been called "a fateful move, exposing Black's empire to America's more rigorous regulatory regime and its more aggressive institutional shareholders."

Under Black, Hollinger launched the National Post in Toronto in 1998. From 1999 to 2000 Hollinger International sold several newspapers in five deals worth a total of US$679-million, a total that included millions of dollars in "non-compete agreements" for Hollinger insiders. Later in the year, Hollinger International announced the sale of thirteen major Canadian newspapers, 126 community newspapers, internet properties and half of the National Post to CanWest Global Communications Corp. Hollinger International sold the rest of the National Post to CanWest in the summer of 2001.

In May 2003, following shareholder complaints, a special committee appointed by Hollinger International directors began investigation of internal financial management, particularly compensation and fees paid directly and indirectly to Ravelston's and Black's associates. For example, in 2000, in an illegal and surreptitious arrangement that came to be known as the "Lerner Exchange," Black acquired Chicago's Lerner Newspapers and sold it to Hollinger. The subsequent report supported allegations of impropriety and led to criminal investigations and ultimately, the unraveling of Conrad Black's financial empire.

Black was called before the U.S. Securities and Exchange Commission in December, 2003 but he refused to answer questions about business dealings, citing his Fifth Amendment right against self-incrimination.

Black attempted to sell controlling interest in Hollinger International to British businessmen David and Frederick Barclay. The Hollinger board of directors sued to halt Black's proposed transaction. In February, 2004, Delaware judge Leo E. Strine, Jr. barred the sale and wrote in his judgment, "Black breached his fiduciary and contractual duties persistently and seriously... I found Black evasive and unreliable. His explanations of key events and of his own motivations do not have the ring of truth."

Lifestyle

Born to a rich family, Black acquired the family home and 7 acres (28,000 m²) of land in Toronto's exclusive Bridle Path neighbourhood after his father's death in 1976. Black and first wife Joanna Hishon maintained homes in Palm Beach, Toronto and London. After he married Barbara Amiel, he acquired a luxury Park Avenue apartment in New York. When sold in 2005, the U.S. Department of Justice seized net proceeds of $8.5 million, pending resolution of court actions. His London townhouse in the Kensington district sold in 2005 for about US$25 million. Black's Palm Beach mansion was listed for sale in 2004 at $36 million.

According to biographer Tom Bower, "They flaunted their wealth." Black's critics, including former Daily Telegraph editor Charles Moore, suggested it was Black's second wife, Amiel, who pushed him towards a life of opulence, citing extravagant expenditures such as items billed to Hollinger expenses that included $2,463 (£1,272) on handbags, $2,785 in opera tickets, and $140 for Amiel's "jogging attire."

Black was ranked 238th wealthiest in Britain by the Sunday Times Rich List 2003, with an estimated wealth of £136m. He was dropped from the 2004 list.

Peerage controversy and citizenship

Main article: Black v. Chrétien

Upon the advice of her British Prime Minister, Tony Blair, Queen Elizabeth II was to honour Black by raising him to the peerage. However, Canadian Prime Minister, Jean Chrétien, gave the conflicting advice that a Canadian citizen should not receive a titular honour, citing the 1919 Nickle Resolution.

Criminal fraud trial

Main article: United States v. Conrad Black

Conrad Moffat Black
Status	Incarcerated, appeal denied June 25, 2008 by 3-judge panel of 7th US Circuit Court of Appeals
Criminal charge	mail fraud, obstruction of justice
Penalty	Sentenced to 6 1/2 years imprisonment

Black was convicted in Illinois U.S. District Court on 13 July 2007 and sentenced to serve 78 months in federal prison, pay Hollinger $6.1 million and a fine of $125,000. Black was found guilty of diverting funds for personal benefit from money due Hollinger International when the company sold certain publishing assets. He also obstructed justice by taking possession of documents to which he was not entitled. The U.S. Supreme Court has agreed to hear an appeal and is expected to render a decision in June 2010. Black's application for bail has been rejected by both the Supreme Court and the US District Court judge who sentenced him.

Verdict and sentence

After twelve days of deliberation, on 13 July 2007, the jury found Black guilty of three counts of mail and wire fraud and one count of obstruction of justice and acquitted him of nine other charges, including wire fraud and racketeering. October, 2013.

Reaction and consequences

Black told journalists he would continue his "long war" against the charges and said "any conviction is unsatisfactory". Investigators hired by Hollinger companies have been examining more than forty bank accounts which may be, or may have been, held in the name of Black, his wife, or affiliated entities.

Appeal

Black's oral arguments were heard June 5, 2008 by a three-judge panel of the 7th U.S. Circuit Court of Appeals. Andrew Frey argued that Black and his co-defendants did not steal from Hollinger when they authorized individual non-competition payments.

Imprisonment

In August 2008, Black's wife, journalist Barbara Amiel, defended her husband in a lengthy article first published by Maclean's then in The Sunday Times.

In 2008 Black wrote to the Canadian Press, commenting that, "I am doing fine. This (prison) is a safe and civilized place, and I don't anticipate any difficulty."

Books and other publications

Black has written an autobiography and three substantial biographies of controversial twentieth-century figures. In each he casts his hero as a man of incorrigible intellectual strength buttressed and not weakened by partisan attack and personal malady. His revisionist works rescue Duplessis and Nixon from their status as moral pariahs, and portrays Roosevelt as an centrist who saved capitalism. Black writes in a highly erudite, if idiosyncratic, manner. His purple style and pointed criticism have been the subject of much derision in reviews, though his factual rigour is beyond repute.

• Duplessis: Black re-worked his 1973 Master's thesis on Maurice Duplessis into a rehabilatory biographical re-examination of the controversial long-serving Quebec premier, published in 1977.

• A Life in Progress: An autobiography, published in 1993.

• Franklin Delano Roosevelt, Champion of Freedom: While Black was CEO of Hollinger International, the company spent millions of dollars purchasing collections of private papers of US President Franklin D. Roosevelt.. Black subsequently completed a 1,280-page biography, in 2003.

• What Might Have Been: A 2004 essay of speculative history depicting the latter half of the 20th century as it may have unfolded had Japan not bombed Pearl Harbor in 1941, edited by Andrew Roberts.

• Richard M. Nixon: A Life in Full: Continuing in the vein of Duplessis, Black's 1,152-page 2007 biography of Richard Nixon sought to rehabilitate the former U.S. President's legacy. This approach was criticized by some reviewers, who felt that it attempted to exculpate Nixon of some negative aspects of his time in office.

• Black continues to contribute regular features to the National Post, the newspaper he founded in 1998 and sold in 2001. In an article there, Black indicated that his next book will describe how his business empire was destroyed while court-protected managers enriched themselves and eradicated shareholder value. He says, "The judiciary and regulators in both countries are complicit in these events. They will have much to answer for. This is the real story, and I will publish it soon."

• In the November 2008 issue of Spear's magazine, Black wrote a diary piece from jail, detailing 'the putrification of the US justice system' and how 'the bloom is off my long-notorious affection for America'.

• On March 5, 2009, Black contributed a piece to the online version of the conservative magazine National Review (NRO). Called 'Roosevelt and the Revisionists' and based on his earlier biography of Roosevelt, it argued that FDR's New Deal was intended to save capitalism, and so deserved conservative support. In her March 9 critique of this piece on NRO, author Amity Shlaes observed, "I will be co-hosting, with Dean Thomas Cooley of NYU/Stern, a Second Look conference on March 30 to permit scholars to present the multiple studies that suggest the New Deal and Great Depression are worth taking a look at from every angle. The great shame here is that Conrad would have added much to this event, and yet he cannot attend."

Biographies and portrayal in popular culture

• The documentary film Citizen Black, which premiered at the 2004 Montreal and Cambridge film festivals, traces Black's life and filmmaker Debbie Melnyk's attempts in 2003 to interview Black, and her eventual interview. US prosecutors subpoenad unused footage of a 2003 shareholders meeting for use in Black's trial.
• Canadian actor Albert Schultz portrayed Black in the 2006 CTV movie Shades of Black.
• Tom Bower's biography Conrad and Lady Black: Dancing on the Edge (ISBN 0007232349) was published in 2006 by Harper Collins. It was republished in August 2007 with an additional chapter reporting on the trial and its outcomes.
• There is talk of two dramas based on his life: one from Tom Bower and Andrew Lloyd Webber and another from Alistair Beaton.
• The last authorized portrait busts of Conrad Black and Barbara Amiel were created between 2001-2002 by Canadian sculptor Dr. Elizabeth Bradford Holbrook and arranged by noted Canadian artist Christian Corbet.
• A book "Robber Baron: Lord Black of Crossharbour" was published in 2007 by ECW press and written by George Tombs. ISBN 978-1-55022-806-9

External links

• SEC - Breeden Report Complete 512-page copy of the Report of Investigation by the Special Committee of the Board of Directors of Hollinger International Inc.
• "Conrad Black's apologia for Richard Nixon": a review in the TLS by Anthony Holden, August 8 2007
• Conrad Black profile from RightWeb
• Lord Black of Crossharbour: The Life and Times of Conrad Black CBC, documentary originally aired 24 March, 2005
• Conrad Black at IdeaCity on CITY-TV
• A Conrad Black timeline, thestar.com, May 11 2007
• Links to Appeal Court Oral Arguments (mp3) and Opinion (pdf)
• Conrad Black's full-length jail diary
• From my cell I scent the reeking soul of US justice