Ex-Hollinger general counsel Kipnis escapes jail
Former Hollinger International general counsel Mark Kipnis - the sole US lawyer convicted in the financial fraud that took down newspaper magnate Conrad Black - emerged emerged from his federal sentencing in Chicago without prison time or a fine. US District Judge Amy St Eve sentenced Kipnis, who was on duty when three other executives siphoned tens of millions of dollars from the company, to five years probation and six months of home detention. While noting that he had engaged in a "serious offense," she determined that he had suffered significant losses already and gained little from the scheme.
December 17, 2007 at 07:41 AM
2 minute read
Former Hollinger International general counsel Mark Kipnis – the sole US lawyer convicted in the financial fraud that took down newspaper magnate Conrad Black – emerged emerged from his federal sentencing in Chicago without prison time or a fine, writes the National Law Journal.
US District Judge Amy St Eve sentenced Kipnis, who was on duty when three other executives siphoned tens of millions of dollars from the company, to five years probation and six months of home detention. While noting that he had engaged in a "serious offense," she determined that he had suffered significant losses already and gained little from the scheme.
"Any prison sentence would undermine respect for the law," St Eve said in sentencing Kipnis, noting that he was the "perfect candidate" for community service. She ordered him to devote 275 hours to such work.
Kipnis could have faced up to 37 months in prison after he was found culpable for $5.5m (£2.71m) of Hollinger losses in the fraud. However, St Eve said Kipnis was not "calling the shots" and had cooperated with a Hollinger committee investigating the fraud.
She also took into account a statement by former Hollinger president David Radler, a key witness for the prosecution, saying that $150,000 Kipnis had received was a bonus, not a pay-off for the scheme.
Kipnis, Black and former Hollinger executives John Boultbee and Peter Atkinson were convicted after a four-month long jury trial in which prosecutors from the US Attorney's Office in Chicago argued that the executives used non-compete agreements tied to companies that Hollinger sold to steal money from shareholders. The federal prosecutors said Kipnis signed off on the non-compete agreements and enabled the other executives to illegally line their pockets.
Black was convicted of three counts of mail fraud and one count of obstruction of justice while the others were convicted of three counts of mail fraud. Black received a six-year term. Atkinson was dealt a 24-month prison term and Boultbee received 27 months.
Kipnis told the judge that employees and shareholders at the company "deserved more from me and I didn't give it to them".
The National Law Journal is a US sister title of Legal Week.
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