Monday, September 22nd18.1°C
23284

Not guilty verdicts in Nortel fraud trial

The former top brass at Nortel were found not guilty Monday of falsifying financial records as part of what the Crown alleged was a widespread, multimillion-dollar fraud at the fallen Canadian technology giant.

Ontario Superior Court Justice Frank Marrocco ruled the Crown did not meet the burden of proof and dismissed charges against ex-CEO Frank Dunn, ex-CFO Douglas Beatty and ex-controller Michael Gollogly.

The three had pleaded not guilty of manipulating the balance sheets at Nortel Networks Corp., between 2002 to 2003.

"I am not satisfied beyond a reasonable doubt that Frank A. Dunn, Douglas C. Beatty and Michael J. Gollogly deliberately misrepresented the financial results of Nortel Networks Corporation," Justice Marrocco said in his ruling.

"Therefore, I find each of them not guilty of counts one and two in this indictment."

The verdict comes nearly a year after one of the largest criminal trials in Canada's corporate history began.

The men each faced two counts of fraud -- one count of defrauding the public and one count of defrauding Nortel Networks Corp. They were accused of participating in a book-cooking scheme designed to trigger $12.8 million in bonuses and stocks for themselves at the once powerful Canadian technology giant.

All three were fired in 2004.

While Dunn did not address the media outside court, he released a statement saying he was "grateful to have received vindication."

"For a very long time, integrity has been the foundation of Nortel Networks' corporate governance and business practices. The documentary evidence and testimony re-affirmed this core value that I witnessed over my 28 years with the company," he said.

"I am looking forward to turning the page on this chapter of my life."

Outside court, Beatty smiled and replied, "Yes, I am," when asked if he was happy to be moving on with his life.

His lawyer, Greg Lafontaine said the ruling vindicated his client.

"We're ecstatic with the results," he said. "It's a great judgment... There was no fraud at Nortel."

At its height, Nortel employed more than 90,000 workers worldwide and was worth nearly $300 billion. During the technology boom in 1999-2000, Nortel was one of Canada's most valuable companies, with its shares peaking at $124.50.

In the years that followed the accounting scandal, the company's shares nosedived to penny-stock status amid falling sales, large debts, and a gamut of legal issues.

In 2009, Nortel filed for bankruptcy in North America and Europe, shedding thousands of jobs.

The Canadian Press


Read more Business News

22908


Recent Trending




Today's Market
S&P TSX15146.07-119.279
S&P CDNX932.23-22.83
DJIA17194.39-85.35
Nasdaq4518.767-61.022
S&P 5001994.06-16.34
CDN Dollar0.9067-0.0057
Gold1217.60+1.00
Oil91.64-0.77
Lumber326.80-2.20
Natural Gas3.908+0.005

 
Okanagan Companies
Pacific Safety0.175+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.31-0.06
Cantex0.05-0.01
Anavex Life Sciences0.214-0.009
Metalex Ventures0.055-0.005
Russel Metals35.59-0.16
Copper Mountain Mining2.37-0.29
Colorado Resources0.175+0.01
ReliaBrand Inc0.0167-0.0082
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.27-0.02

 



23475

FEATURED Property
180350220 - 180 Sheerwater Court, Kelowna, BC
10088870 bedrooms
$799,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...

_





23499


Member of BC Press Council


22632