KEY POINTS:
CHICAGO - Conrad Black's ex-partner, who has already pleaded guilty to fraud, took the stand today as the star witness against the fallen media baron and prosecutors began to link the two men as inseparable in business.
"I was impressed by Mr. Black's knowledge and ability and thought he'd be a good partner," David Radler recalled of his first encounter with Black just before they bought their first Canadian newspaper in 1969.
Black, seated at the defence table, stared straight ahead and did not appear to lock eyes with the man with whom he worked side-by-side for years building and then dismantling one of the world's largest media companies.
Radler, a Canadian citizen who lives in Vancouver, pleaded guilty in the case nearly two years ago in exchange for a 29-month sentence and a promise to testify for US government prosecutors against Black and three co-defendants.
On the stand he appeared rumpled and wispy-haired, frequently mumbling. He was told to speak up.
"How were major financial and business decisions made?' asked lead prosecutor Eric Sussman.
"They were jointly made," responded Radler.
"So you worked side-by-side?" Sussman continued.
"At the time we were equal partners," Radler responded.
The Canadian-born Black, 62, is charged with racketeering, fraud, money-laundering and obstruction of justice. A member of Britain's House of Lords, he faces up to 101 years in prison, millions in fines and $92 million in forfeitures if convicted.
His co-defendants face lesser charges, but the four are accused of stealing $60 million from Hollinger International Inc., now a much smaller company known as the Sun-Times Media Group.
"Did you plead guilty to a scheme to steal money from Hollinger shareholders?" Sussman asked Radler.
"Yes, I did ... I pled guilty to fraud. I pled guilty to taking money from Hollinger International under illegal circumstances," Radler replied.
Sussman got Radler to describe how they met when Radler was 27 and Black was a 25-year-old law school student. Radler told how the two bought the then money-losing Sherbrooke Record in Quebec for $50,000.
"How long until you turned a profit," Sussman asked.
"I believe three months," Radler replied.
Radler then went on to describe how the two men began buying other newspapers in the 1970s. Their empire grew to include such marquee names as the Daily Telegraph of London and the Jerusalem Post, as well as dozens of local Canadian papers.
Defence lawyers have said they intend to portray Radler, who was a key manager of Black's newspaper empire for more than 30 years, as the real culprit who is lying to save himself.
The trial is in its eighth week. Earlier testimony by newspaper executives, accountants, lawyers, and former Hollinger directors has been used to buttress the prosecution's accusation that Black and the others disguised bonuses to themselves as non-taxed, non-compete payments.
- REUTERS
