Sep 7, 2004
Er, Dishonor Among Thieves
Just when I thought neocon heavy Richard Perle might have one conceivably redeeming quality – loyalty to his fellow mafiosi – he goes and proves me wrong:
- 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. ...
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.
"The special committee has concluded that Lord Black and other members of the Ravelston Management Group misled the directors of Hollinger, including me, concerning the scope of their compensation, the payment of noncompete payments and the related-party nature of several transactions," Mr. Perle said, referring to the holding company run by Lord Black that effectively controlled Hollinger."As the report shows, critical information was either not revealed or obscured as matters were presented to the audit and executive committees and the full board of directors.
"I did not participate in or profit in any way from the management agreements, related-party transactions or noncompete payments at issue," the Perle statement added. ...
According to the report, after Mr. Perle, without the authorization of Hollinger's board, signed a document on Dec. 25, 2002, that appeared to commit Hollinger to invest $25 million in his venture capital fund, Trireme, Lord Black sent an e-mail message to the president of Hollinger Digital, in which he wrote,"As I suspected, there is a good deal of nest-feathering being conducted by Richard which I don't object to other than that there was some attempt to disguise it behind a good deal of dissembling and obfuscation.
"My instinct told me that these two were trying to smoke one past us," Lord Black wrote, referring to Mr. Perle and an associate at Trireme.
"I think they have done a good job rummaging all this together, but they should treat us as insiders with our hands cupped as the money flows down, and not as outsiders pouring in the money," he continued. ...
The report suggests in one passage that Lord Black ultimately agreed to permit Hollinger to make a $2.5 million investment in Trireme to get Mr. Perle to resign as head of Hollinger Digital, telling three top Hollinger executives by e-mail messages that he was"well aware of Richard's shortcomings" and another that he was"well aware of what a trimmer and a sharper Richard is at times."
In another e-mail message, sent to a Hollinger executive in early January 2003, he wrote:"I have been exposed to Richard's full repertoire of histrionics, cajolery and utilization of fine print. He hasn't been disingenuous exactly, but I understand how he finessed the Russians out of deployed missiles in exchange for noneventual deployment of half the number of missiles of unproven design."
In February 2002, according to the report, Lord Black sent a letter to Mr. Perle complaining that Hollinger had been receiving expenses from an American Express card for $1,000 to $6,000 a month"and there is no substantiation of any of the items which include a great many restaurants, groceries and other matters. This is not a system that conforms to the standards being imposed in every area of this company."
The report said it could not find a reply from Mr. Perle.