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Thread: Criminal fraud trial of three ex-Nortel executives begins

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[quote=COOLSPRINGS,454375]Michael Lewis
 Business Reporter

One of the most spectacular flameouts in corporate history will be on the docket this week when pre-trial motions begin into criminal charges against former executives at Nortel Networks Corp.

Justice Frank Marrocco is scheduled to preside Thursday over motions, including those by the defence, in an open-court hearing at the Superior Court of Justice of Ontario. A trial before the justice is to begin in Toronto on Jan.16.

The RCMP charges allege that the defendants, including ex-Nortel chief executive Frank Dunn, engineered an elaborate accounting fraud to mask falling Nortel sales after the technology stock bubble popped in the spring of 2000.

Prosecutors say the scheme cost the Toronto company’s shareholders billions and contributed to the demise of the once-high flying Bell Canada equipment arm, with Nortel now being wound up under creditor protection.

“It’s the biggest (financial scandal) in Canada, one of the biggest in the world,” Rotman School of Management financial analysis professor Ramy Elitzur told the Star in 2008.

The criminal matter is to commence nearly four years after the RCMP charged Dunn, former chief financial officer Douglas Beatty and former controller Michael Gollogly with seven counts each.

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