Hollinger Inc. — the holding company once headed by the recently-jailed Conrad Black — has agreed to pay $21.28 million US to settle a civil complaint filed by the U.S. Securities and Exchange Commission back in 2004.

The SEC filed its case against Black, former Hollinger chief operating officer David Radler, and Hollinger Inc. more than three years ago. 

The U.S. market regulator alleged that Hollinger broke U.S. securities laws from 1999 to 2003 by fraudulently receiving $16.55 million in non-compete payments relating to the sale of some newspapers by Hollinger International (now known as the Sun-Times Media Group).

The SEC also alleged that Hollinger Inc. falsified its books and failed to implement internal accounting controls. 

The $21.28 million US settlement amounts to that $16.55 million US plus $4.73 million in interest.

Hollinger's settlement did not include a confirmation or denial of the facts contained in the SEC's 2004 complaint.

'One further step'

"This settlement represents one further step forward in Hollinger's efforts to resolve its outstanding regulatory and compliance issues, and allows Hollinger to continue to focus on its primary objective of maximizing the value of its assets for the benefit of all stakeholders," said Hollinger CEO Wesley Voorheis in a statement.

As part of the settlement, Hollinger has also agreed to the revocation of the U.S. registration of its common stock and Series II preference shares.

Black began serving a 78-month jail term in Florida earlier this month after being convicted of fraud and obstruction of justice in the long-running case. He is appealing his convictions.

Radler began serving a 29-month fraud sentence in December. He has already agreed to pay $28.75 million US to settle with the SEC.