Conrad Black's right-hand man tells of 'plan to plunder millions from media empire'

The prosecution's star witness David Radler testified that Lord Black ordered that millions of pounds should be paid to a smaller Toronto-based company he owned rather than the parent company where the money would have gone to shareholders.

The testimony was the first to tie the 62-year-old peer directly to the transfer of money that the prosecutors say belonged to the shareholders of Hollinger International media empire.

Radler who served as secondin- command of Hollinger International - at one time the world's third biggest English language media empire - was asked if Black had instructed him that 25 per cent of all socalled 'non-compete' payments received in the sale of company assets would be paid to the smaller company in Toronto, Hollinger Inc.

"He confirmed that was the plan," Radler told the court in Chicago. "He said Yes and that was it."

The 64-year-old Canadian was Black's former business partner for more than 30 years. That partnership came to an end in 2005 when Radler struck a deal with prosecutors to give evidence against his longtime friend in return for a more lenient 29-month sentence to be served in a Canadian jail.

One by one, Radler outlined three sales of Hollinger International-owned newspaper groups and the payment of £8 million to Hollinger Inc.

Canadian-born Black, 62, is accused of cheating Hollinger International out of £42 million, mainly by selling hundreds of small community newspapers across the US and Canada and receiving separate payments from the buyers.

The money was in return for promises not to move back into the areas where the papers circulated and compete with the new owners.

Prosecutors say all of the noncompete money should have gone to Hollinger International shareholders.

Some did, but millions were paid to Black and codefendants John Boultbee and Peter Atkinson, Radler himself and two Black-controlled corporations based in Toronto.

On the first day of his evidence Radler's focused on his relationship with Black.

The two men met in 1969. "I was impressed with Mr Black's knowledge and his ability and I thought that he would be a great business partner to have," said Radler.

He later told the court that Black did not inform the board of Hollinger International anything about directing money into Hollinger Inc.

Asked why he did not say anything to the board, Radler replied: "I should have said something but I didn't. I regret that."

Black denies 17 charges of racketeering, money-laundering, wire and mail fraud, tax evasion, and obstructing justice. Boultbee, Atkinson and Mark Kipnis deny tax, wire and mail fraud.

The trial continues