Conrad Black is facing allegations of insider trading with the help of a Toronto asset management firm in 1998, the Globe and Mail reported Tuesday.
In court documents filed Monday by the U.S. Attorney's office in Chicago, prosecutors allege the former CEO of Hollinger International was involved in a scheme with the Toronto-based firm Brascan Corp. — now known as Brookfield Asset Management.
Former newspaper tycoon Conrad Black, seen here outside a Chicago court in September, says his lawyers plan a robust defence and he is confident he will be cleared.
(M. Spencer Green/Associated Press)
The scheme intended to boost the share price of Hollinger International through inside trading.
The profits were then allegedly split among Black, a group of associates and Brascan. At the time, Black was a director at Brascan.
Prosecutors allege money from Hollinger International was used for a $5 million gift Black made to Toronto's Hospital for Sick Children in 1998.
Black and three other former Hollinger executives already face several charges connected to allegations they took more than $80 million US from the company.
All four have pleaded not guilty and nothing has been proven in court.
David Radler, Black's longtime business partner, has pleaded guilty to one charge and has been helping the prosecution in its case against Black and the others.
The trial is slated to begin March 7, but Black's co-defendants have asked for a two-month postponement.
Black's lawyer has said his client won't join in the request for the delay, but will not oppose the request.
