A former top executive pleaded guilty Tuesday to mail fraud and agreed to a 29-month prison sentence for his testimony against others in an alleged scheme to divert more than US$32 million from Conrad Black’s newspaper holding company, Hollinger International Inc.

David Radler, the firm’s former chief operating officer, agreed Tuesday to a 29-month jail term and a US$250,000 fine in a deal with the U.S. Attorney for pleading guilty to one count of mail fraud in federal court.

Six other counts against the Canadian-born former publisher of the Chicago Sun-Times will be dropped.

Radler will be sentenced after other cases related to the alleged fraud are wrapped up. He has agreed to co-operate with authorities and testify if required.

The U.S. Attorney’s Office has alleged that Radler supervised negotiations of newspaper sales through which he and other Hollinger managers pocketed millions of dollars in fees that should have gone to the company.

Conrad Black, Hollinger International’s chairman and CEO, has not been charged with any wrongdoing although he faces a criminal investigation by U.S. and Canadian authorities.

Radler, holding company Ravelston Corp. and former Hollinger in-house lawyer Mark Kipnis were each charged with five counts of mail fraud and two of wire fraud in August. Kipnis, 58, pleaded not guilty and is free on a US$250,000 US bond.

Radler is now free on a US$500,000 bond. His next appearance is scheduled for November 7.