Breaking News from The Globe and Mail

SEC to recommend civil charges against Hollinger Inc.

Tuesday, August 31, 2004

Chicago — The Securities and Exchange Commission's Midwest regional office plans to recommend civil charges be filed against Hollinger Inc. for alleged violations of the Securities Exchange Act, the company disclosed Monday.

In a statement, Toronto-based Hollinger, which is controlled by media baron Conrad Black, did not name the alleged violations but said it plans to formally tell the SEC why it believes the charges should not be brought.

Meanwhile, Chicago-based Hollinger International Inc., which owns the Chicago Sun-Times, Jerusalem Post and other major newspapers, said it plans to file its findings of a board investigation of alleged financial misappropriations by Black and others with the SEC on Tuesday. Hollinger International also filed the report in U.S. District Court in Chicago, but the report was not available from the court until Tuesday.

"It is an important step forward in our pursuit of restitution for funds and assets inappropriately taken from the company's coffers and in our efforts to significantly improve corporate governance at Hollinger International," said Gordon Paris, CEO and interim chairman of Hollinger International, in a written statement.

Black was forced out as CEO and chairman of Hollinger International after an internal investigation found that he and several associates improperly received millions in payments that should have gone to the company. Black retains voting control of Hollinger International through Hollinger Inc.