(CN) – The 7th Circuit granted bail to former press baron Conrad Black, pending an appeal of his conviction for cheating shareholders of Hollinger International. He has served two years of a 6.5-year prison term.
Black was convicted in 2007 of swindling Hollinger shareholders by pocketing $6.1 million in bogus transactions disguised as “management fees.” He allegedly manipulated the company’s financial reports to cover the scheme.
Last month, the Supreme Court dramatically weakened the “honest services” law, determining that it “covers only bribery and kickback schemes.”
The law was central to Black’s conviction, which will be reviewed by the 7th Circuit in light of the high court’s ruling. A three-judge panel of the 7th Circuit previously upheld Black’s conviction.
Black’s bail hearing is set for Wednesday morning.
Hollinger International owned the Chicago Sun-Times and several smaller local newspapers. Its Canadian holding company, Hollinger Inc., filed for bankrupty shortly after Black’s conviction. Hollinger International reformed in 2006 as the Sun-Times Media Group.