Nortel trial focuses on ‘optics’ of bonus payments
Mon, 01/30/2012 - 14:59 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.
The final executive to lead now-defunct Nortel Networks Corp. has few regrets when he looks back at his tumultuous four years at the helm of the once-mighty Canadian telecom giant. “I do not look back with anything, except that we gave it everything we had and unfortunately, sometimes in business things don’t turn out,” said Mike Zafirovski, Nortel’s 60-year-old former CEO during an interview this week.
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'
MONTREAL — For a year, Arthur Porter has explored every avenue possible to avoid extradition from Panama to face corruption-related charges in Canada.
The former Montreal hospital executive and spy watchdog has invoked his status as special ambassador for his native Sierra Leone to claim diplomatic immunity, challenged the legality of Canada’s extradition treaty with Panama and complained to the United Nations and the Organization of American States about his treatment.
Now he says he is not being allowed to defend himself against the fraud allegations.
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.
MONTREAL — What a police investigator described Tuesday as “the biggest corruption fraud in the history of Canada” was allegedly being carried out under his nose, but Normand Bergeron did not suspect a thing.
The former president of the provincial agency overseeing public-private partnerships in Quebec, Mr. Bergeron, like so many in Quebec, had been wowed by the larger-than-life persona of the man behind the McGill University superhospital project, Dr. Arthur Porter.
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