Conrad Black will not have to go to jail while he awaits sentencing after being convicted on three counts of mail fraud and one count of obstruction of justice, a judge in Chicago ruled Thursday.

Conrad Black leaves the federal courthouse after his hearing before U.S. District Judge Amy St. Eve at federal court in Chicago on Thursday.
(Charles Rex Arbogast/Associated Press)

"There is clear and convincing evidence that Mr. Black is not going to flee," Judge Amy St. Eve said in her decision to deny a government request that Black be jailed immediately.

But St. Eve placed restrictions on where Black can travel until sentencing on Nov. 30, limiting his movement to the district of Chicago where his trial took place, and the Palm Beach, Fla., area, where he has a home.

St. Eve is still considering whether Black will be allowed to return to Toronto, where he has a home, but that decision won't be made until an Aug. 1 bail hearing. She expressed concern that if she allowed him to return to Canada "he would decide to fight coming back."

St. Eve asked defence lawyers to address questions about whether Black might have additional financial assets that could be put up for bail, should she choose to increase it. She also wanted to see, or receive guidance on, an Ontario court order, under which Black's assets were frozen last year.

"We're going to come back on Aug. 1 and deal with her questions and hope for the best," Black's lawyer, Edward Greenspan, said after the hearing. "She wants more information. We'll give her more information."

Black had to surrender his British passport following his conviction last week. The document remained in the court's possession following Thursday's bail hearing.

Prosecutors argued that the judge should revoke Black's $21-million US bail — which was secured last year with his Palm Beach mansion — and order him jailed until his November sentencing.

Black is a flight risk, prosecutors said, because he faces a possibly long prison term. They insisted Black's conviction should carry a sentence of at least 15 to 20 years.

They also said the former media baron has shown disregard for the American justice system in the past.

'No doubt' Black would return: Greenspan

Black's defence team, which quickly vowed to appeal his conviction, countered that the businessman will definitely return to court in Chicago because he wants to clear his name.

Greenspan told St. Eve he had "no doubt" that his client would return to Chicago for sentencing if allowed to travel to Toronto and that Black has promised to do so in writing.

But lead prosecutor Eric Sussman dismissed Black's promise, saying "his word isn't worth the paper it's written on."

Greenspan said Black, who renounced his Canadian citizenship in 2001 in order to become a British citizen and accept a seat in the British House of Lords, was last in Canada under a temporary resident permit. That permit expires on Nov. 27 — three days before his sentencing hearing.

Greenspan said Black has been told he can return to Canada — provided the judge allows him to leave the U.S. — and he will have his permit extended, but will be afforded no special rights.

Black had no comment for reporters as he left the courthouse and was driven away in a waiting vehicle.

One trial watcher called the judge's decision a victory for the defence.

"This judge, I think, effectively paid Conrad Black a compliment. By finding there's very convincing evidence that he is not a flight risk, she basically said … 'I trust Conrad Black,'" said Chicago lawyer Hugh Totten.

Three co-defendants, Mark Kipnis, Jack Boultbee, and Peter Atkinson, were also convicted of three counts each of mail fraud.

Boultbee and Atkinson, both Canadians, were allowed to return to Canada pending their Nov. 30 sentencing hearing. Kipnis, who is a U.S. citizen, was also released.

With files from the Canadian Press