As the trial begins today involving the Nortel Three – Frank Dunn, Michael Gollogly and Doug Beatty – it’s important not to forget the bigger picture: the demise of Nortel as Canada’s flagship high-tech company, the thousands of people that it used to employ, and the billions of dollars [...] Continue Reading…
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With the trial involving fraud allegations against the Nortel Three – Frank Dunn, Doug Beatty and Michael Gollogly – slated to start Monday (although there is a defense motion that may delay it), it was interesting to read a story by the Ottawa Citizen’s James Bagnell about the financial [...] Continue Reading…
With a trial slated to start on Monday in Toronto, the Crown lawyers going after the Nortel Three – Frank Dunn, Doug Beatty and Michael Gollogly – have dropped four of the seven charges against each of them.
The Crown said the charges were eliminated because they were similar to [...] Continue Reading…
If you’re interested in getting a better handle about case against Frank Dunn, Michael Gollogy and Doug Beatty, here’s the court document filed with the Ontario Superior Court of Justice.
The National Post’s Drew Hasselback provides a good summary of the charges, which were laid after Dunn, Gollogy and Beatty [...] Continue Reading…
Four years after they were charged, a trio of ex-Nortel executives – Frank Dunn, Michael Gollogy and Doug Beatty – will finally see their day in court.
According to the Toronto Star, Justice Frank Marrocco is scheduled to preside Thursday over motions, including those by the defence, in an open-court [...] Continue Reading…
And So the Case Begins…
Did the Nortel Three cook the books or not? It’s question a lot of people been waiting a long time to know.
It may take months before the allegations against Frank Dunn, Doug Beatty and Michael Gollogy are proved either way but the chief prosecutor, Robert Hubbard, opened his arguments by making it clear that the Nortel Three manipulated Nortel’s books to turn a loss into a profit during the second quarter of 2003.
Hubbard also claimed excess accruals were shifted from Nortel’s income statement in avoid a profit in late-2002, which would have triggered bonuses to employees but not senior executives.
At the core of the allegations against the Nortel Three is they cooked the books to trigger a $5-million bonus plan. Dunn, Beatty and Gollogy were fired “for cause” in 2004.
Dunn was replaced by Bill Owens, a former U.S. Navy Admiral, with little telecom experience. He handed the ball to Mike “Mike Z.” Zafirovski who led the company into bankruptcy protection and, eventually, a massive asset liquidation.
For more on the trial, here are some links:
- Nortel executives shifted accounting funds to achieve results (Globe & Mail)
- Crown Likens Nortel Fraud to widespread Sudoku (Montreal Gazette)
- In search of one material lie (Ottawa Citizen)