No victims, no smoking gun, Conrad Black trial told

By Andrew Stern

CHICAGO (Reuters) - Conrad Black's lawyer told jurors on Tuesday that prosecutors failed to produce victims or a smoking gun in 14 weeks of trial to prove the former media baron stole millions of dollars.

Edward Greenspan, launching his closing argument in Black's criminal fraud case, said the prosecution's main appeal seemed to be instead that Black was guilty because he had accumulated great wealth.

"In America, you do not convict people for being rich," Greenspan said. "The government is trying to distract you ... you cannot hold it against him because he has a party with Michael Bloomberg, Henry Kissinger and Donald Trump as guests."

After a day in which Black was called a liar and a common thief by prosecutors summing up their case, the 62-year-old Canadian-born member of Britain's House of Lords appeared to relish his story being told to the jury.

He turned to his daughter and two sons sitting in the front row of the courtroom and flashed a quick, reassuring smile as Greenspan told the jury:

"What does this show you ladies and gentlemen? That there are two sides to every story. Now, we get to tell you our story."

"Yesterday, the prosecutors asked you to make it matter to shareholders. We've been sitting here for 14 weeks -- where are the shareholders? Where are the victims?" Greenspan asked, referring to investors in Hollinger International Inc., the company that ran Black's publishing empire and from which he and three codefendants are accused of stealing $60 million.

Instead, he said, "The government's main witness is a serial liar," a reference to David Radler, Black's long-time former business partner turned government informer who pleaded guilty to a single count of fraud. Radler, the government's star witness, is headed for a light jail sentence.

"Radler didn't show a planned scheme and he certainly didn't back it up with documents," Greenspan said. "David Radler is all they've got. The government didn't have a smoking gun because there isn't one."

"They had no case ... so they were left with David Radler, a man so ready to lie to save himself," Greenspan said.

SHAREHOLDER HEAPS PRAISE

Black and the other former Hollinger executives are accused of appropriating for themselves $60 million in so-called non-competition payments that prosecutors contend rightfully belonged to the company and its shareholders.

The payments compensated Black and the others for agreeing not to compete against the buyers of hundreds of media properties they were selling to pay accumulated debt. Prosecutors contend the payments were essentially turned into non-taxed bonuses for the defendants.

Black is charged with mail fraud, wire fraud, obstruction of justice, racketeering and filing false tax returns. If convicted, he could face decades in prison and forfeiture of millions of dollars.

His three do-defendants face lesser charges and lighter penalties if found guilty.