Conrad Black colleague denies racketeering claims

A former Hollinger International executive named with ex-Daily Telegraph boss Conrad Black in a $1.25bn (€1bn) lawsuit that accuses them and others of improperly diverting funds has denied claims of racketeering.

Former executive vice president David Radler issued a statement saying the transactions had been approved by newspaper company Hollinger’s board of directors. He said he plans to “vigorously defend” his actions.

An amended federal lawsuit was filed on Friday in Chicago by a special committee of Hollinger International’s board of directors.

It accuses Radler, former Hollinger chief executive Black and others of pocketing millions of dollars in non-competition fees and other payments when they allegedly sold newspapers for less than their market value. Those actions broke the Racketeer Influenced and Corrupt Organisations Act, or RICO, Hollinger said.

Black has called the allegations “tabloid journalism masquerading as law”.

Radler said in his statement that the amended lawsuit had some “curious omissions”.

Hollinger International declined to comment on the statement.

The amended complaint seeks to triple damages of more than $380m (€321m) because of the alleged racketeering, the company said. Its claim also includes almost $104m (€118m) in interest.

Hollinger International owns The Telegraph , the Chicago Sun-Times and the Jerusalem Post.

Radler, who was also publisher of the Chicago Sun-Times, and Black, stepped down in November.