SEC to file civil fraud charges against former Hollinger CEO, president

[JURIST] The US Securities and Exchange Commission is likely to file civil fraud charges this week against former Hollinger International chairman Conrad Black and former Hollinger president David Radler, according to a Monday Wall Street Journal report [subscription required]. In the lawsuit to be filed in federal court, the SEC is expected to allege that Black and Radler violated securities law by failing to disclose to investors payments and other transactions that benefited the executives to the detriment of the company. In August, a Hollinger committee to investigate financial improprieties among company executives released a report saying that Black and other controlling shareholders used more than $400 million of corporate funds for personal perks. JURIST's Paper Chase has background on possible charges. The Guardian has more.

12:04 PM ET - As expected, the SEC filed fraud charges Monday against Black and Radler, seeking to enjoin the defendants from further violating securities laws and a court order that the defendants disgorge their ill-gotten gains and pay civil penalties. The SEC has this press release.

 

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