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David Radler enters the courthouse on May 14, 2007.

'No jury' would convict on Radler testimony: Black

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CTV News: Radler didn't look back after leaving court
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Date: Thu. May. 17 2007 8:23 PM ET

CHICAGO — Conrad Black delivered his verdict on two weeks of testimony by the prosecution's star witness, declaring boldly to reporters at his fraud trial Thursday that no "jury in the world'' would convict him on the courtroom say-so of David Radler, his long time business partner who had just finished giving evidence against him.

Radler was Black's business partner for more than 30 years and agreed to plead guilty to fraud and testify against the former press baron in exchange for a lenient jail sentence and fine.

He has spent days being called a liar by defence lawyers and accused of implicating Black and three other former Hollinger International executives only to secure his "sweetheart deal'' with prosecutors.

"I don't think he has any credibility,'' Black said outside the Chicago courtroom after Radler stepped off the witness stand Thursday afternoon.

"I don't think any jury in the world would convict anybody on the basis of what he said. I repeat my long-standing view that this was never a criminal case -- except possibly against him.''

Radler spent his last few hours on the stand under attack from defence lawyers, who took more shots at his credibility after an aggressive attack that led to various testy and combative exchanges.

A visibly relieved Radler waved to reporters as he stepped from the stand. He didn't look at Black as he left.

Prosecutors said they had no comment on Black's assertions or Radler's performance, and will make their views clear during their closing arguments in the high-stakes fraud trial.

It is not clear whether Black will take the stand, and his lawyers have said they will not make that decision until prosecutors finish arguing their case.

Jonathan Rosenberg, a lawyer for Hollinger International's special committee set up to investigate Black and Radler's financial dealings, followed Radler on the stand.

His appearance was part of the U.S. government's attempts to persuade jurors that Black and three other executives had no approvals for the tens of millions of dollars they pocketed after the sale of company newspapers.

The so-called "non compete payments'' -- stemming from the sale of Canadian papers to Winnipeg-based CanWest Global Communications and U.S. papers to several U.S. buyers -- are at the heart of the government's case.

Prosecutors say Black and two other former Hollinger executives -- Peter Atkinson and Jack Boultbee -- took millions of dollars in payments in exchange for a promise not to compete with the buyers of several Hollinger newspapers in Canada and the U.S.

Mark Kipnis, a Hollinger International lawyer based in Chicago, is accused of helping to facilitate the transactions.

Rosenberg, a New York lawyer who helped investigate shareholder concerns in 2003, said Atkinson and Boultbee both told the special committee that CanWest wasn't interested in the Hollinger executives getting the non-compete payments as a condition of closing. And both men knew the non-competes were not taxable under Canadian law.

Atkinson, Rosenberg said, "described it several times as a bonus.''

"It was his impression that it didn't matter to CanWest that he receive any money.''

Non-competes for Radler and Black in connection to CanWest are not in dispute, but the payments made to Atkinson and Boultbee are.

Rosenberg also interviewed Kipnis, who referred to the non-competes as "silly'' and said they were really management fees, he said.

Prosecutors also asked Rosenberg about a comment Atkinson made during a 2002 Hollinger annual meeting, when -- according to Rosenberg -- Atkinson said "that in his view, certain of the information (given to shareholders at the meeting) was incorrectly presented.''

That information related to comments Black made to shareholders about the CanWest non-competes.

Judge Amy St. Eve had ruled earlier in the day that prosecutors would not be allowed to ask Rosenberg whether it was Black who made the comments or if Atkinson considered it a lie in the presence of jurors.

Rosenberg will continue his testimony when court resumes Monday, and will be followed by Paul Healy, who was in charge of investor relations at Hollinger.

Prosecutors are expected to ask him about the shareholder concerns, as well as about Black's New York apartment. They say Black swindled Hollinger International out of the unit when he bought it from the company in 2000.

Before Radler left the stand Thursday, defence lawyer Ron Safer got in a few parting shots.

Safer, a lawyer for Kipnis, said Radler initially faced a jail sentence of 57 to 71 months under general guidelines in the United States if he pleaded guilty.

That sentence was reduced to a maximum of 29 months after Radler fingered Black as the organizer of a plan to divert millions of dollars from Hollinger shareholders.

"You understood that if you were found to be an organizer or leader of criminal activity the guidance range (for the sentence) would increase,'' Safer charged.

"You and the government reached an agreement that your sentence should be 29 months ... but the only way you get the 29 months is if the prosecution makes a motion to the judge.

He appeared both nervous and annoyed, alternately shooting apprehensive glances at the jury and sighing and shaking his head.

"I have to say yes,'' he eventually conceded in a low voice.

He insisted he was telling the truth, but admitted that if there had been no others charged in the case he "presumably would have a trial.''

"You wouldn't do anything to put (your plea) agreement in danger,'' Safer told Radler, saying he was simply repeating facts "the government gave you.''

"If you do that, you'll get out (of jail) in six months,'' he said.

The jurors, who have regularly dozed off or entertained themselves by twirling their hair during the trial, listened attentively to the exchange, having turned in their chairs to look straight at Radler.

Radler later told prosecutor Eric Sussman that there was no ulterior motive for his testimony or plea.

"I pled guilty because I am guilty,'' he said. "I am guilty, that's it.''

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