Canadian Fraud case: Former Chief Executive Officer Frank Dunn, former Chief Financial Officer Douglas Beatty and former Controller Michael Gollogly misstated financial results!!

Three former Nortel Networks Corp. (NRTLQ) executives face trial in a Canadian criminal court accused of a C$5 million ($4.9 million) fraud at what was once North America’s largest telephone-equipment maker before its bankruptcy and dissolution.



Former Chief Executive Officer Frank Dunn, former Chief Financial Officer Douglas Beatty and former Controller Michael Gollogly allegedly misstated financial results between 2000 and 2004, allowing them to pocket millions in bonuses. Their trial is to begin today at Ontario Superior Court in Toronto.


Prosecutors “will be proceeding on two counts of fraud against each accused” in a trial that is expected to last six to nine months, Brendan Crawley, a spokesman for the Ontario Ministry of the Attorney General, said in an e-mail.


Prosecutors will set out their “case in court on the record, and won’t be making any comment before then,” Crawley said.

The accused opted for a trial without a jury and they could face maximum sentences of 14 years. The judge in this case will be Frank Marrocco, the former prosecuting attorney in Canada’s biggest stock-market scandal, the Bre-X Minerals Ltd. (BXM) gold- discovery hoax. In that case, the only executive brought to trial was acquitted in 2007.