U.S. prosecutors playing 'hardball' with Black

Conrad Black is finding the American justice system a costly proposition, but opinion is split on whether prosecutors are simply mounting a tough challenge -- or an unfair one.

His legal team is to give a Chicago judge an updated financial portrait today of the former press baron after U.S. prosecutors two weeks ago accused Lord Black of deliberately understating his assets during bail negotiations last year.

Judge Amy St. Eve will rule on Wednesday whether it will cost Lord Black millions more than the US$20-million he has already pledged to the U.S. government to stay out of jail while awaiting trial. But even if she rules in his favour, the Canadian-born businessman's bail requirements appear tougher than those of several U.S. corporate titans tried recently on charges of white-collar crime.

"This is hardball," said Ross Albert, an Atlanta-based attorney with Morris, Manning and Martin LLP and a former U.S. prosecutor. "It demonstrates the degree of confidence the U.S. government has in its case."

Privately, Lord Black's legal camp fumed about the fuss over his bail, dismissing it as sabre-rattling. After all, bail is supposed to ensure an accused shows up for trial, not cripple his ability to defend himself.

But in the eyes of the U.S. justice system, Lord Black of Crossharbour is no ordinary defendant.

Born in Montreal, he traded in his Canadian citizenship in 1999 in favour of a British passport and a seat in the House of Lords. He has friends and family on both sides of the Atlantic, owns property in Toronto and Florida and operates his business affairs in Canada...

"He is a foreign national with money outside the U.S. and that suggests a greater potential for flight. It's pretty standard in situations like these," said Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware.

This, even though Lord Black has never missed a court appearance in Chicago, has waived his right to fight extradition and has publicly swaggered about how anxiously he awaits his day in U.S. court.

Edward Greenspan, a prominent Canadian criminal lawyer representing Lord Black, says there is no evidence that his client will not show up for trial.

"He gave up a whole host of constitutional rights to challenge extradition," he said. "Once somebody does that, I can't imagine how you can express your sincerity anymore about your willingness and desire to attend and have the matter dealt with so that his reputation can be restored."

Clearly, U.S. prosecutors aren't taking any chances.

"There may be issues as to how enforceable those kinds of cases are in extradition proceedings," explained Samuel Buell, a law professor at Washington University in St. Louis. "After all, it would be a Canadian court, not a U.S. court, to decide whether to enforce that waiver."

Prof. Buell says the U.S. government is also looking at the risk of flight down the road, as circumstances change over the course of a trial.

"For example, a lot of information gets turned over in discovery before a trial begins that could make it clear to a defendant that the government's case may be much stronger than expected," he said. As well, if a trial isn't going well for a defendant, the hefty bail is meant "to be the sober second thought against an accused fleeing."

•	U.S. prosecutors playing 'hardball' with Black Bail conditions harsher than those for Enron's Lay and Skilling National Post (Canada), Monday, July 10, 2006 Byline: Theresa Tedesco with files from Barbara Shecter, National Post