The Ontario Securities Commission is bringing a variety of allegations against Hollinger Inc., Conrad Black, his deputy David Radler, and Hollinger directors John Boultbee and Peter Atkinson.

The OSC’s notice of hearing focuses on the allegation that Hollinger was used as a vehicle to divert US$16.55 million from Hollinger International in the form of undisclosed non-competition payments that were made as part of assorted asset sales. None of the allegations have been proven.

The regulator alleges that the firm failed to disclose the non-competition payments; that it made statements in continuous disclosure filings that were false or misleading; that its proxy circulars failed to disclose insiders’ interests in these transactions; that it failed to disclose executive compensation; failed to file financials; and; failed to implement policies to avoid conflicts of interest.

As for Black, Radler and the others, it alleges that they allowed these disputed transactions and disclosure failures to take place. The OSC claims that they breached their fiduciary duties to Hollinger and Hollinger International as a result.

The first appearance in this matter is scheduled for May 18 at the OSC to set a date for the hearing.