PDA

View Full Version : the truth will out



Qtec
09-06-2004, 10:11 AM
September 6, 2004
Perle Asserts Hollinger's Conrad Black Misled Him
By STEPHEN LABATON

ASHINGTON, Sept. 5 - Last fall, as the board of Hollinger International prepared to oust its founding executive, Conrad M. Black, the director most protective and supportive of him turned to a friend and balked.

"This is a kangaroo court," a person recalled the director, Richard N. Perle, as saying in defense of Lord Black, who had been accused by investors of improperly siphoning millions of dollars to other companies he controlled.

But last week, Mr. Perle's view of Lord Black changed. Issuing his first public statements since being heavily criticized in an internal report for rubber-stamping transactions that company investigators say led to the plundering of the company, Mr. Perle now says he was duped by his friend and business colleague. <font color="blue"> Sure. </font color>

Mr. Perle, a top Pentagon official in the Reagan administration, wielded considerable influence in foreign-policy circles as recently as 2002 as an intellectual parent to the neoconservatives . He was named to the Hollinger board in 1994, joining other like-minded men selected by Lord Black, a self-made businessman from Canada who surrounded himself with conservative thinkers. He particularly did that at Hollinger, a global media company whose holdings at the time included The Chicago Sun-Times, The Jerusalem Post, The Sunday and Daily Telegraph and The Sydney Morning Herald.

But the relationship between the two men was particularly special, friends and Hollinger officials recall. Lord Black approved plans that ultimately earned Mr. Perle more than $5 million - including a bonus formula that rewarded Mr. Perle for the successful investments he placed on behalf of a subsidiary of Hollinger but did not subtract for the losers. Mr. Perle served on a three-member executive committee of the board headed by Lord Black. The two men socialized frequently and traveled together extensively on the company jet, once going to see Prime Minister Benjamin Netanyahu of Israel.

Even so, by 2002, Lord Black was complaining in internal company messages about Mr. Perle.

Now, their relationship, which has come under scrutiny by federal regulators and investors, has decidedly changed.

In the face of federal investigations and a scathing internal report for Hollinger by Richard C. Breeden, a former chairman of the Securities and Exchange Commission, Mr. Perle has broken ranks and turned on Lord Black.

The report contends that Lord Black improperly took hundreds of millions of dollars for himself and associates - and that Mr. Perle was the enabler, approving some questionable transactions at the same time he was being heavily compensated at the direction of Lord Black. The report said that Mr. Perle told the committee he often signed documents without reading them, and it singled him out among the directors for conflicts of interest. " With the notable exception of Perle, none of Hollinger's non-Black group directors derived any financial or other improper personal benefit from their service on Hollinger's board," the report said. "It is, of course, possible for a conflicted board member to act at least somewhat responsibly. As a conflicted executive committee member, however, Perle did not. Rather, his executive committee performance falls squarely into the 'head-in-the-sand' behavior that breaches a director's duty of good faith and renders him liable for damages."

From his vacation home in southern France late Friday, issuing the outlines of his legal defense for the first time, Mr. Perle said that he was misled. <font color="blue"> Obviously. Ha! </font color>

Isnt there and old saying that you can tell a lot about someone by the freinds they keep!?

Q

highsea
09-06-2004, 11:57 AM
Lol, Conrad Black steals $400 Million from his shareholders, and the best you can do is criticize Perle for making $5 Mil as a director in the company?

I'm not sticking up for Perle, I don't like the guy, but the real crook was Black.

-CM

Qtec
09-06-2004, 12:06 PM
Agreed,but does that make P any less guilty?

Q

highsea
09-06-2004, 12:56 PM
Less guilty that Black? Yes.

Perle was apparently Black's lapdog, fine. Hollinger paid Perle 5.4 million dollars in total compensation between 1998 and 2003. That's not necessarily excessive as CEO's salaries go. (Perle was the CEO of Digital when Hollinger acquired the company)

As the guy responsible for the internal audits of Hollinger, Perle was complicit in Black's and Radler's looting of the company. Black paid Perle's salary, so Perle did not have incentive to be a faithful auditor.

For that he should be held accountable, and return the 5.4 Mil to Hollinger.

But Perle was not the one that looted Hollinger, it was Black and Radler. You can read the report by Hollinger's Board of Directors here (http://www.sec.gov/Archives/edgar/data/868512/000095012304010413/y01437exv99w2.htm).

-CM