The U.S. Securities and Exchange Commission has laid a civil fraud lawsuit against former Hollinger International CEO Conrad Black, accusing him and a former associate of improperly diverting tens of millions of dollars from the company.

Besides Black, the SEC named Hollinger's former deputy chairman and chief operating officer David Radler and Hollinger Inc., the public holding company controlled by Black.

The SEC wants Black and Radler barred from acting as officers or directors of a public company and called for them to pay back millions and face further financial penalties.

Conrad Black (file photo)

The commission's complaint alleges that from 1999 through 2003, Black, Radler and Hollinger Inc. engaged in a "fraudulent and deceptive scheme" to divert money and assets from Hollinger International, and that they hid their "self-dealing" from Hollinger International's public shareholders.

The SEC complaint said Black, Radler and Hollinger Inc. "diverted to themselves, other corporate insiders, and Hollinger Inc." about $85 million US of the proceeds from Hollinger International's sale of newspaper publications "through purported 'non-competition' payments."

Black used Hollinger Intl as 'personal piggy bank': SEC

"Black and Radler abused their control of a public company and treated it as their personal piggy bank," SEC enforcement director Stephen Cutler said in an SEC statement.

"Instead of carrying out their responsibilities to protect the interest of public shareholders, the defendants cheated and defrauded these shareholders through a series of deceptive schemes and misstatements," he said.

The allegations have not been proven in court.

The regulatory body also wants Black's Hollinger International shares put in a trust to remove him from control of the company.

The lawsuit was filed in U.S. District Court in Chicago, where Hollinger International is headquartered.

Black resigned as Hollinger International's CEO late last year after the accusations of improper payments were first raised. Hollinger International's board later ousted him as chairman.

Hollinger International is now run by independent directors and has sued Black, Hollinger Inc. and several other associated companies and individuals for more than $500 million US.

Black strenuously denies misappropriating money and has countersued. Radler has also denied wrongdoing.

Earlier this month, Black resigned as chairman and chief executive of Toronto-based Hollinger Inc. so he could launch a buyout of minority shareholders of the publicly traded holding company.