The Daily Caveat previously wrote about the shenanhigans at media giant Hollinger (here and here). This morning, The White Collar Crime Prof Blog has the latest on the indictments that have been handed down in the case.

Government Indicts Media Executive, Attorney, and Corp.

Friday, August 19, 2005

The former publisher of the Chicago Sun-Times, along with a lawyer for Hollinger International have been indicted. Additionally, the company that controlled Hollinger International - The Ravelston Corp. Ltd. was also indicted. See DOJ press release here. The press release states that the indictment was for "federal fraud charges for allegedly fraudulently diverting from the U.S.-based Hollinger newspaper holding company more than $32 million through a complex series of self dealing transactions."

The 27 page indictment presents seven counts of mail and wire fraud. Interestingly, 18 U.C.S. sec. 1346, the intangible right to honest services is used in the indictment. The charges against in-house counsel are premised on an alleged "fiduciary duty of undivided loyalty to International, which among other things, required [the attorney] to provide honest services to International, to disclose all material facts regarding all related party transactions to International's Audit Committee, and to refrain from assisting others in any breach of fiduciary duty against International."

Check out the full tag-team post from Ellen Podgor and Peter Henning (with lots of helpful links) right here.

-- MDT

Labels: Peter Henning