Nortel trial focuses on ‘optics’ of bonus payments
Mon, 01/30/2012 - 15:59 EDT - Financial Post
Drawing on a conversation between Frank Dunn and a senior-ranking finance employee in the spring of 2003, Crown prosecutors attempted Monday to place the former Nortel chief at the centre of an alleged fraud
TORONTO — Three former Nortel executives accused of orchestrating a widespread multimillion-dollar fraud will learn their fate Monday, nearly a year after one of the largest criminal trials in Canada’s corporate history began.
Ontario Superior Court Justice Frank Marrocco is set to rule on whether ex-CEO Frank Dunn, ex-CFO Douglas Beatty and ex-controller Michael Gollogly manipulated financial statements at Nortel Networks Corp., between 2002 to 2003.
How did it get to this stage? How after more than four years of bankruptcy proceedings – and months before the trial that will decide how the so-called global estate of Nortel Networks should be divided up between the competing claims gets underway – did Justice Morawetz of the Ontario Court of Justice make an amazing comment?
The alleged fraud committed against Nortel Networks Corp by three former executives now standing trial would have required broad internal consent as well as cooperation from the firm's external auditors, defence lawyers argued Thursday, calling the premise 'preposterous'
OTTAWA — Three Ottawa-area teenage girls befriended other teens on the Internet and then forced them to work as “escorts,” a court was told Monday.
The three accused teens recruited or attempted to recruit teenage girls from Ottawa through Facebook or other social media, Crown prosecutor Julien Lalonde told youth court on the opening day of what is expected to be a month-long trial.
A newly unsealed police affidavit alleges that unidentified administrators of McGill University Health Centre committed fraud in the awarding of a $1.3-billion contract to SNC-Lavalin Group to build a superhospital in Montreal.
The document confirms for the first time that police suspect one or more MUHC managers were involved in the corruption scandal that has ensnared Canada’s largest engineering firm.
SNC-Lavalin’s former chief executive, Pierre Duhaime, was arrested last November for fraud and using forged documents in connection with the hospital project.
The four-and-a-half-year winding down of Nortel Networks Corp. is the gift that just keeps on giving – to lawyers, accountants, and small armies of insolvency practitioners on at least three continents. To date, US$915-million has been spent on professional fees and disbursements — US$268-million of that to hired guns in Canada — to clean up the corporate mess ever since the once-mighty Canadian telecommunications equipment maker filed for bankruptcy protection from creditors in January, 2009.
Mired in a widening probe to clear a bulge of accounting provisions from Nortel's balance sheet in 2003, the company's auditors missed tens of millions of dollars more in irregular items being targeted for the bottom line, a fraud trial heard here Wednesday
The Crown’s first witness in the trial of former Nortel executives on Tuesday testified that he solicited accounting entries early in January 2003 that had the effect of transforming an unexpected quarterly profit into a loss
AURORA, Ont. — Auto parts company Magna International Inc. paid founder Frank Stronach a total compensation package worth nearly $47.3-million in 2012, up from nearly $41-million in 2011.
Stronach, who resigned from the Magna board last year, was paid $44.3-million in a cash profit sharing bonus, a $2.3-million consulting fee, $107,000 for company vehicles and $609,000 for personal use of corporate aircraft, according to regulatory documents filed ahead of the company’s annual meeting.
MONTREAL — Troubled engineering giant SNC-Lavalin has hired a former Siemens executive to guide the company on ethics and matters of corporate governance.
Andreas Pohlmann will begin his duties as chief compliance officer on March 1, SNC-Lavalin said Friday.
Former SNC CEO Pierre Duhaime and another former top executive, Riadh Ben Aissa, are facing fraud charges stemming from a contract involving the building of the multibillion-dollar McGill University Health Centre in Montreal.