As three former Nortel executives go on trial for alleged fraud, CTV News interviews David Hutton, Executive Director of FAIR, on on the subject of white collar crime in Canada.
The topics include: is Canada doing enough to combat white collar crime; and what role do whistleblowers play.
For hundreds of thousands of investors in Nortel Networks Corp. who collectively lost all or part of their investment in a firm whose value peaked at almost $440 billion, it’s unfortunate that corporate governance is not on trial.
Legal proceedings began yesterday against Frank Dunn, 57, former CEO of Nortel, and two Nortel colleagues, Douglas Beatty and Michael Gollogly, on charges of fraud in a trial expected to last several months.
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.
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.
Peter Burns, a former Nortel engineer and key advocate in the struggle to secure benefits for the company's former workers, has died. He was 54.
The Kanata resident, who was on disability from Nortel before his benefits were cut off in January, suffered from complications of spinal cord surgery. He passed away on Saturday while on a weekend trip.
One of the leaders of a group of disabled former Nortel employees has died. Peter Burns was 53 years old and the father of three daughters when he died Saturday.
Burns fought not only to protect himself and his Nortel colleagues from financial ruin, but to help others working for companies with similar employer-sponsored disability insurance.
In the Dec. 14th issue of the Echo there was an excellent letter by Jeremy Bell. However, certain other information needs explaining.
1. The 350 disabled employees and all other employees had made contributions to an employee insurance and long term disability plan. These contributions were never put into any insurance plan but were added to Nortel's general income.
Jeremy Bell – December 14, 2010
In late November, I went to a Senate Committee to provide testimony on Bill S-216: Protection of Beneficiaries of Long Term Disability Plans Act. The Bill provides for a small increase in creditor status for disabled employees if their company becomes bankrupt. I was disappointed to hear that Bill S-216 was defeated in the Senate.
It was a private member's bill introduced in the Senate by Liberal Senator Art Eggleton. Perhaps simple politics required the government to defeat it.
OTTAWA – New Democrat Member of Parliament John Rafferty (Thunder Bay – Rainy River) stated that he is deeply troubled by the defeat of bill S-216, also known as the “Nortel Bill,” by the Conservative majority in the Canadian Senate.
“S-216 was a well-thought out and much needed bill that would help the most vulnerable workers in our society retain their medical benefits when their employers enter bankruptcy,” commented Rafferty. “Only those 47 unelected and unaccountable conservative Senators know why the sick and vulnerable continue to rank behind banks and junk bond holders when a company’s assets are liquidated.”
When Prime Minister Stephen Harper publicly wished a “speedy recovery” to his long-time campaign manager at the Conservative caucus Christmas party this week, some took it as a signal a federal election is looming.
But sometimes well wishes are just well wishes, and in the case of Doug Finley – Mr. Harper’s hard-nosed field general – the Prime Minister owes him a profound debt of gratitude.
