The SEC has filed a civil lawsuit in an Illinois court against Lord Conrad Black of Crossharbour, former chairman, and David Radler, former deputy chairman of Hollinger International, and is freezing Lord Black's shareholding in the company.
The case focuses on $85m of non-compete payments Lord Black and Radler received from the company between 1999 and 2003. The SEC found that they had failed to gain board approval for some of the payments.
Stephen Cutler, director of the SEC's enforcement division, said: "Black and Radler abused their control of a public company and treated it as their own personal piggy bank."
The SEC is freezing Lord Black's equity stake in Hollinger International, currently worth about $220m (£119m), in a trust that it will control.
Lord Black is already facing legal action from shareholders of Hollinger International, which Lord Black controls via Hollinger Inc.
Hollinger Inc said it would vigorously defend itself against the SEC lawsuit.
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