Posted by chicagomedia.org on May 19, 2009 at 11:35:41:
High court to hear appeal of ex-Sun-Times owner
May 19, 2009
BY NATASHA KORECKI AND DAVE ROEDER | Sun-Times Staff Reporters
The U.S. Supreme Court indicated Monday it would take up the appeal of onetime media magnate Conrad Black.
But that's just part of the story.
It's the underlying issue in the case that has the potential to undo some of the biggest cases in Illinois while changing the tenor of future prosecutions.
By reviewing the Black case, the Supreme Court will weigh the so-called "honest services" statute, a law long embraced by Chicago prosecutors and long blasted by defense attorneys as too broad.
"If they were to overturn honest services, [former Gov. George] Ryan is one whose conviction would be suspect," said one of Black's lawyers, Marc Martin. Martin said the statute is so ill-defined it essentially: "allows the prosecution to make up the offense after the fact."
Ryan, Mayor Daley's patronage chief Robert Sorich as well as Black, are sitting in prison now, in part based on honest services convictions.
The law says one can be found to have deprived a company or taxpayers of his or her honest services even if there was no financial loss -- or personal gain.
Defense lawyer Michael Monico said the panel may have chosen the Black case to define the law as it pertains to private individuals. Black, who used to head the Sun-Times' parent company, was convicted in 2007 of stealing millions of dollars from the company.
"It has the potential of changing the way the government prosecutes cases against private individuals and possibly public officials," Monico said.
Sorich went to prison on charges that he rigged city hiring. He was convicted of depriving taxpayers of his "honest services," even though he wasn't accused of taking a bribe.
In February, the court denied taking up Sorich's case. But Justice Antonin Scalia wrote a scathing dissent, saying the statute was a mess, possibly prompting the panel to now take up the issue.
Eric Sussman, a former Black prosecutor, said even if the honest services counts are thrown out, the imprisoned Black still faces 6½ years for obstruction of justice. "He might win the battle and lose the war when all's said and done," Sussman said.
Meanwhile, the bankruptcy filing of Sun-Times Media Group Inc. probably means the company will not have to pay Black's attorney fees as he pursues his appeal, a source said. Any request for payment would go before a bankruptcy judge, who is unlikely to put Black ahead of creditors such as the IRS.
Black's appeal and potential exoneration are not expected to complicate efforts to sell the company. He used to control the company through ownership of shares that gave him super-voting rights. Those shares have since been converted to regular shares.