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One-time media baron Conrad Black leaves federal court, June 27, 2007, in Chicago. (AP / Charles Rex Arbogast)

Black trial jury to resume deliberations Friday

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Date: Thu. Jul. 5 2007 7:17 PM ET

CHICAGO — Jurors at the Conrad Black trial adjourned their sixth day of deliberations without returning a verdict after lawyers returned to court Thursday to discuss possible forfeiture instructions.

Jurors said they planned to sit from 9 a.m. to 2 p.m. CT Friday to continue the deliberations that will ultimately determine whether Black and three other former Hollinger International executives allegedly defrauded shareholders by conspiring to steal millions of dollars. They left 45 minutes before their proposed departure time of 4:45 p.m., but gave no explanation for the change.

Black's lawyers, meanwhile, went before Judge Amy St. Eve for the first time in days to discuss what instructions the jury should get if it returns a guilty verdict and is asked to decide how much money the former press baron will have to repay.

The defendants can decide whether they want the judge to set the final amount -- as is most often the case -- or the leave it in the hands of the jury.

Black lawyer Marc Martin told St. Eve Thursday that "was something we haven't decided,'' but suggested his camp may prefer a bench decision.

He also argued Black's Palm Beach mansion in Florida should not be eligible for forfeiture because it was purchased in 1994, before his alleged crimes began.

"Palm Beach itself is not a proceed of any criminal offence,'' Martin said. "I don't want the court to think that we're agreeing Palm Beach should be in the mix.''

Black put up the estate in order to post his bail in 2006.

Lawyers for all the defendants will agree on their forfeiture instructions and preferences soon, since St. Eve said she wanted the issue to be decided before the jury comes back with a verdict.

It is not known how long the panel of nine women and three will take to make its decision, with estimates ranging from one to several weeks.

Jurors have had few communications with the court since they retired last Wednesday, and several have been so minor that St. Eve opted to deal with them through conference calls with lawyers. Court procedure usually requires all the lawyers and defendants to reconvene for jury notes and questions, but in Black's case the smallest communication has precipitated a media stampede to the courtroom.

St. Eve said Thursday there had been two notes since last week -- one of which said jurors had technical problems with some audio evidence and one setting Thursday's schedule.

That first note suggests jurors may be reviewing tapes from two Hollinger shareholder meetings -- in 2002 and 2003 -- when Black came under attack from shareholders. They could also be watching video testimony from two lawyers with Toronto firm Torys LLP who testified about disputed payments.

During the trial, they watched hours of testimony from Beth DeMerchant and Darren Sukonick, who advised Hollinger International in a blockbuster deal with CanWest Global Communications.

The jury has not been told about the possibility that they may have to deliberate past the verdict, and typically would not hear about their possible role in deciding forfeiture until after they return a verdict that finds the defendants guilty of mail and wire fraud and/or a racketeering violation.

Prosecutors allege that Black and the others orchestrated a scheme to pocket about US$60 million in non-compete payments negotiated with buyers when Hollinger sold newspaper assets, money that should have gone to company shareholders. They also allege Black fraudulently misused about $20 million in company funds on perks such as lavish parties and trips and a Manhattan apartment.

If they are convicted, prosecutors are seeking a forfeiture of as much as US$92 million because they say the money is the proceeds of crime.

Black's lawyers filed instructions earlier this week telling jurors that if they are asked to make that decision, the government has the burden of proving the forfeiture allegations beyond a reasonable doubt.

Lawyers for co-defendants Jack Boultbee, Peter Atkinson and Mark Kipnis adopted Black's instructions, but objected to the government's plan to seek joint forfeiture from all four defendants and said in a court filing that doing so would result in Black's co-defendants paying amounts that are "grossly disproportional to the gravity of the offence.''

U.S. prosecutors say in their instructions that property subject to forfeiture includes tangible and intangible personal property, including money, profits, and proceeds.

David Radler, Black's former partner turned star prosecution witness, agreed to return US$28.7 million to Hollinger International shareholders as part of settlement with U.S. securities regulators just days before opening arguments in the Chicago trial began in March.

He also paid a US$250,000 fine as part of his plea agreement with prosecutors.

Black and his three co-defendants have not been convicted of any crimes and deny all wrongdoing.

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