Disgraced newspaper baron Conrad Black should have his bail revoked because he lied to the government about his assets and recently failed to make a mortgage payment on his Palm Beach mansion, federal prosecutors said yesterday in Chicago.

Black, who is scheduled to go on trial in March 2007 on charges that he looted newspaper giant Hollinger of millions of dollars, now faces more legal woes over the $20 million bail agreement he signed last December.

"In essence, the government agreed to allow defendant to post assets for which there was probable cause to believe defendant was never legally entitled to own," Assistant U.S. Attorney Edward Siskel wrote in yesterday's court filing.

Black's defense team asked for more time to review the government's motion, and U.S. District Judge Amy St. Eve scheduled a hearing for June 26.

Black was freed on bail in December 2005. Under the bail agreement, Black pledged to forfeit $20 million if he failed to show up in court. The promise was secured by his Palm Beach mansion, which is said to be worth more than $35 million, and $8.5 million in proceeds from the October 2005 sale of his Park Avenue apartment, which was seized by authorities.

But yesterday the government alleged that Black lied about how much equity he held in the Palm Beach house, as well as how much he had in cash.

In Black's affidavit he said he had less than $300,000 in "liquid assets available to post as security." But in the filing yesterday, the government said Black recently wrote a check for more than $460,000 to the Palm Beach tax collector and recently made a $500,000 donation to the Canadian Opera Company.

Meanwhile, at the time of Black's bond hearing last fall, he said he held an investment in Horizon, a Canadian newspaper chain, worth about $3 million.

Yesterday the government said Black is seeking to sell his stake for close to $16 million, and is asking a judge to force Black to pledge the investment as security for bail.

At the same time, Black also failed to make a mortgage payment on the mansion and "therefore was given notice that he was in default," according to the filing.

The case began in November 2003 when Black was forced to resign after Hollinger's board of directors found $32 million in allegedly illicit payments.

David Radler, former publisher of Hollinger's Chicago Sun-Times, pleaded guilty and is cooperating with the Justice Department.