Black 'took payments for himself'

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Lord Black siphoned off money from the sale of newspaper titles for his own benefit, the media baron's former closest aide has testified.

David Radler, chief prosecution witness in Lord Black's fraud trial, said the British peer had sought "non-compete" payments through deals since 1998.

These were not disclosed to other directors at the firm, Radler added.

Prosecutors claim the payments were improper bonuses, but Lord Black denies all charges of fraud and racketeering.

Payments outlined

In his second day of testimony in Chicago, Radler - formerly chief operations officer at newspaper publisher Hollinger International - said Lord Black and his co-defendants first sought $50m in payments from a big deal in 1998.

Mr Black told me that Hollinger Inc deserved some of the non-compete monies that were being allocated David Radler

Radler, who was convicted of fraud in 2005 and agreed to co-operate with the authorities, said Lord Black requested the money for Hollinger Inc, Hollinger International's parent company, which he ran.

"Mr Black told me that Hollinger Inc deserved some of the non-compete monies that were being allocated," he said.

"He said Inc was the parent and, as the parent, it deserved a portion of the $50m fee. He said it was deserving."

Hollinger subsequently received $12m from the deal, Radler went on to say.

Radler said he was "stunned" by what he was asked to do

Prosecutors allege that Lord Black and fellow Hollinger executives effectively stole $60m over a number of years through "non-compete" deals - agreements designed to recompense a firm for not later competing with an asset it has sold.

Radler said he had been "stunned" when he was told by colleague Peter Atkinson - one of three others also on trial - that he had to sign an agreement authorising non-compete payments as part of a $3bn deal in 2000.

Radler said he had asked for substantial compensation in return for doing this, which he later received.

'Regret'

Radler testified that Lord Black had said nothing to Hollinger International's board of directors about the money he had received from these deals.

When asked why he did not make his concerns known to the board, Radler admitted that he had not told the truth for fear of facing awkward questions.

"I should have said something but I didn't. I regret that."

Lord Black has denied any wrongdoing, saying that Hollinger International's board approved all the payments in question.

If convicted, he faces a sentence of more than 100 years and heavy fines.