Author Peter C. Newman has claimed that Conrad
Black's wife, journalist Barbara Amiel, was a
"catalyst" that partly explains why the former publishing tycoon
"blew himself out of the water" and ended up in the sights of the
U.S. Securities and Exchange Commission. In an interview with the
Straight while promoting his new autobiography, Here Be
Dragons: Telling Tales of People, Passion and Power
(McClelland & Stewart, $42.99), Newman said that Black had
always lived a life of luxury, but it wasn't out of control.
However, after he married Amiel, more stories started appearing
in the media describing the couple's lavish lifestyle.
Newman said that SEC officials have told him that "they kept
adding up her closet" after reading news reports. "She wasn't the
cause, but she was the catalyst," Newman claimed.
He said that these stories also caught the attention of at
least one institutional investor in Hollinger International, who
sued. The board ordered an investigation; a subsequent report
claimed that Black and his associates diverted hundreds of
millions in company profits. Black and his Vancouver-based
business partner, David Radler, have rejected these
allegations, which haven't been proven, and claimed they were
defamatory.
Newman wrote an entertaining chapter about Black and Amiel in
his autobiography. He also wrote a biography of Black in 1982
called The Establishment Man (McClelland & Stewart),
praising the businessman's intellect and stunning memory.
On January 13, 1983, Black wrote a letter to Newman
complaining that the author had created a "fictitious image...of
a chillingly ruthless and rather conceited person, obsessed with
materialism, pontificating endlessly, and viewing the world
through the prism of a 'reactionary proprietor'."
Buried deep within the book was a section dealing with Black's
legal battle with Hanna Mining Co. in connection with a corporate
takeover.
According to the book, a U.S. judge concluded that the
evidence supported Hanna Mining's allegations of "manipulative
violations" of the U.S. Securities and Exchange Act; Black filed
an appeal, though he also signed a consent decree with the SEC
promising not to violate federal securities laws.
SEC spokesperson Peter K.M. Chan told the
Straight on November 23 that a civil injunction was filed
as part of Black's consent decree in the Hanna Mining case.
Speaking generally about the law and not about Black
specifically, Chan said, "If that same person is found to have
violated the federal securities law again in violation of the
civil injunction, that may--I emphasize may--lead to a finding
that the person is in either civil or criminal contempt of the
court's order."
Chan said that typically, this comes after a judge has
presided over evidentiary hearings. The SEC has not proven any
allegations in its civil suit against Black and Radler, who've
each proclaimed their innocence.