Sharon Lavine

The three accused, former senior executives of Nortel Networks Corporation, were charged with two counts of fraud over $5,000.

The Crown alleged that they deliberately misrepresented Nortel's financial results by manipulating accrued liability balances to meet earnings targets and trigger bonus payments.

The court conducted a detailed review of Nortel's accounting practices, the use of accrued liabilities, and the restatements of its financial results.

The court found that the Crown failed to prove beyond a reasonable doubt that the accused deliberately misrepresented the financial results or that the financial statements were materially misstated.

The accused were found not guilty on both counts.

The accused brought a pre‑trial motion seeking particulars requiring the Crown to specify the alleged misrepresentations, fraudulent conduct, and false accounting entries underlying charges relating to financial reporting of a public corporation.

The motion relied on s. 587 of the Criminal Code, arguing that the indictment lacked sufficient detail for the preparation of a defence.

The court reviewed the extensive investigations, disclosure, and related regulatory proceedings already known to the accused and concluded that they were aware of the case they had to meet.

The court held that the areas of dispute were sufficiently delineated and that further particulars were unnecessary for trial fairness or evidentiary rulings.

The application for particulars was dismissed.