Conrad Black is expected to sue the United States government Wednesday over the seizure of nearly $9-million (U.S.) of his money last month.
On Oct. 7, FBI agents seized the proceeds from the sale of a New York apartment Lord Black put up for sale. Officials with the U.S. Department of Justice alleged the money was part of a “fraud scheme” by the media baron. Lord Black has denied any wrongdoing and has already filed an action with the FBI to get his money back. This morning, Lord Black's lawyer is expected to file a lawsuit against the government over the seizure.
The move comes as the Ontario Court of Appeal ruled Tuesday that Lord Black, former chairman of Hollinger Inc., can't assert U.S. constitutional guarantees to prevent Canadian investigators from questioning him about deals involving companies he controlled.
The appeal court ruling Tuesday dismissed Lord Black's claim that his U.S. constitutional protection from self-incrimination would be violated because his answers to Canadian investigators might be used in a separate U.S. probe.
Lord Black has resisted requests to be interviewed by the accounting firm Ernst & Young LLP, which was appointed by an Ontario judge to investigate loans involving Lord Black's companies.
The U.S. Attorney's office in Chicago is probing payments Lord Black received in exchange for a promise not to compete against companies that purchased some of his newspapers.
Lord Black, 61, and his associates are “only entitled to a constitutional exemption if their evidence would be used against them in a criminal prosecution here,” Judge Karen Weiler wrote on behalf of the appeals panel. In Canada, while people must answer questions in a probe, their statements generally can't be used against them in court.
© The Globe and Mail
Only GlobeinvestorGOLD combines the strength of powerful investing tools with the insight of The Globe and Mail.
Discover a wealth of investment information and and exclusive features.
