Canada: Nortel Execs Stole Bonuses

Jan. 17, 2012 – The Canadian government is trying a former Nortel Networks CEO and two other executives for fraud. Frank Dunn along with former CFO Douglas Beatty and Comptroller Michael Gollogly cooked the books with the primary goal of triggering executive bonuses, according to the Crown.

“Management misled the company’s board of directors,” CBC News quotes lead prosecutor Robert Hubbard, “later adding money not earned during the reporting period in order to impress the directors with the illusion of improving results and have them agree to trigger the bonuses.”

As luck would have it, other divisions in the company were doing the same to management. “At the end of the day, everybody’s sandbagging everybody,” Hubbard is quoted as saying. Nortel was the largest company in Canada at one point, but has since been broken up and sold.

Dunn and his two cronies are accused of defrauding the company of $5 million.

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