Hollinger International, the pubisher of the Chicago Sun-Times was already under investigation by the SEC. Now Hollinger and company execs "Lord" Conrad Black and David Radler are facing a separate criminal probe launched by the federal government.

From the AP:

Gov't Confirms Criminal Probe of Hollinger

Tuesday March 22, 7:10 PM EST

CHICAGO (AP) — Federal prosecutors confirmed for the first time Tuesday they are conducting a criminal investigation of newspaper tycoon Conrad Black, his former top deputy David Radler and Hollinger Inc.

The government acknowledged the investigation in court papers in which it asked to intervene in a Securities and Exchange Commission lawsuit filed in November against Black, Radler and Hollinger Inc. The SEC accuses the men of engaging 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 concealing the actions from shareholders.

To read the rest, click here.

The SEC had previously filed fraud charges against Black, Radler and Hollinger. Their November 2004 notice can be found here.

In other news, controversial defense department advisor and neo-conservative guru, Richard Perle is facing his own troubles relating to the Hollinger scandal. Perle, a Hollinger director, has recieved a Wells notice from the SEC, indicating that the agency has determined there is sufficient evidence to bring civil charges against him.

The Globe & Mail has the full story.

Hollinger execs and, apparently board members including Richard Perle are accused of looting more than $400 million from the company over seven years.

-- MDT

Labels: Conrad Black