WORLD EXCLUSIVE: Canadian Justice System on Trial: Fraud Verdicts of Nortel, and Weizhen Tang, the Chinese Warren Buffett
Toronto. January 16, 2013 –On Oct 30, 2012, an Ontario, Canada, Judge, “Crown” prosecutor lawyers, and jury presided over a guilty verdict for Weizhen Tang, a self-proclaimed, “Chinese Warren Buffett.” Tang had some 200 investors, several lost their life savings.
On Monday, January 14, 2013, another Ontario court acquitted 3 top executives of fraud at Nortel, formerly one of Canada’s and the world’s greatest telecommunications companies. At its height, Nortel had about 90,000 employees, and was Canada’s largest company, with a market capitalization of some $300 billion. Beyond the sad loss to shareholders, former Nortel employees, pensioners, and disabled pensioners are now fighting for the remaining $9 Billion in Nortel’s assets. There are some $25 Billion in claims…
Ontario prosecutors had charged that three Nortel executives: the former CEO, Frank Dunn; the former CFO, Douglas Beatty; and Controller, Michael J. Gollogly. Amongst their charges, they were accused of manipulating cash reserves during 2002 and 2003 to create quarterly profits that triggered to them personally, bonus payments of some $12.8 million. They were fired in 2004, as Nortel fell into hell, restating several times, the Nortel financials.
Ontario Superior Court Judge, Justice Frank N. Marrocco, accepted their pathetic defence claims that Nortel executives had not conspired to enrich themselves.
Interesting, in the case of Weizhen Tang, Tang has always claimed that he did not enrich himself; that money “diverted” to his accounts, were for legitimate business expenses; that he was doing his strategies for the ultimate benefit of his investors!
In Tang’s case, investors were given untrue financial statements that they were getting 1% returns per month! The Government prosecutors claimed that Weizhen Tang was a giant ponzi scheme fraud that raised some $52 Million, to become one of the worst ponzi schemes in Canada and the world.
In the case of Nortel, Ontario Judge Marrocco rejected the prosecution claims that the 3 executives had mispresented the company’s finances. They were just aggressive?!
Weizhen Tang is convicted by an Ontario court, for providing his investors with financial statements that did not represent the true state of the financial situation of the company.
Nortel executives are found innocent by an Ontario court, for providing his investors with financial statements that did not represent the true state of the financial situation of the company.
Nortel shall become one of Canada’s and the world’s worst and most shameful legal cases.
Thus, Nortel became one of Canada’s largest and most shameful bankruptcies. And with this verdict, in 2013, it looks like Nortel shall become one of Canada’s and the world’s worst and most shameful legal cases.
After the verdict, Nortel ex-CEO Frank Dunn, spoke pathetically about vindication, integrity, corporate governance. There are some $25 Billion in remaining claims against Nortel. There are some $9 Billion in cash assets to the bankrupt Nortel. No doubt, Nortel’s out-of-luck ex-suppliers, employees, pensioners, disabled pensioners, investors take great comfort, in Dunn’s kind after-verdict comments –some of these people, having lost their life savings with the bankruptcy of Nortel, after the several “restatements” of the financials of the Nortel, lead by Frank Dunn, Douglas Beatty; and Controller, Michael J. Gollogly…
Nortel, Cineplex, Weizhen Tang: What is the Canadian justice system doing?
The Ontario government prosecutors have not commented yet. Perhaps, they shall appeal. Otherwise, hopefully, the American SEC, Securities and Exchange Commission, shall seek justice; and launch its civil fraud charges against the former Nortel executives.
Interestingly, some have called Weizhen Tang, the Chinese Warren Buffett, and the “Chinese Bernie Madoff.” Bernie Madoff got some 150 years in jail, upon conviction for his ponzi scheme fraud. The Nortel officials are now free. Weizhen Tang faces sentencing by Ontario Judge Alfred O’Marra. Government lawyers, Mr. Robert Gattrell, and Mr. Gavin Macdonald, have sought 8-10 years in jail, for the convicted Chinese Warren Buffett and Chinese Bernie Madoff.
Recently, in Ontario, Canada, another high-profile financial-statement-fraud, Garth Drabinsky, former CEO of the famous Cineplex Theatre group and scandal, was convicted of fraud –cooking the books too. He was sentenced to 7 years, reduced to 5 years on appeal. In the USA, Madoff is facing 150 years…
With the cases of Weizhen Tang, Garth Drabinsky, and Nortel, the Canadian justice system is looking rather puzzling, if not downright inconsistent, unjust, tainted… After all, as Weizhen Tang pointed out at his sentencing hearing the old but true maxim: Justice must not only be done, it must be seen to be done…”
The failed and unjust trillions in government bailouts and employment schemes?!
The world economic and social orders are collapsing, with the recent trillions of dollars for failed government bailouts, failed employment programs. With the growing awareness by the peoples of Canada, the USA, China and the world, people are increasingly questioning the decisions of governments, the legal and financial systems.
The Canadian justice system was once considered an honoured, fair and just system.
The system is now being questioned with such widely inconsistent, possibly tainted verdicts, as Conrad Black, Garth Drabinsky, Weizhen Tang, and Nortel. Another former Nortel CEO, John Roth, was NOT even charged by the Ontario government in the Nortel case. Or should we call it now the Nortel Canadian Justice System failure…?!
Though John Roth was Nortel CEO during the period of the financial “restatements” of Nortel, the Canadian justice system did NOT even charge Roth. Roth is living happily on hundreds of millions of dollars in Nortel salaries, bonuses, stock options…
Frighteningly, Weizhen Tang claims that his prosecution is possibly a case of convenient scapegoating; with possible racist overtones. In this world exclusive, Weizhen Tang points out that “unlike the Nortel executives, Weizhen Tang is not part of the Canadian society elite, not part of the Canadian corporate elite… not white…”
Is Tang correct in his accusations, or simply delusional? Ironically, on January 11, 2013, during his sentencing hearing, Weizhen Tang’s amicus lawyer, Hamilton lawyer, Peter Boushy, applied for a mental health assessment of Weizhen Tang. Tang’s presiding Judge Alfred O’Marra is expected to offer a decision on such a mental health assessment of Weizhen Tang this week, on January 18, 2013.
Canadian Justice System on Trial?!
Weizhen Tang muses about what is more crazy, his conviction or the not-guilty verdict for Nortel’s executives and their financial statement manipulations. Whether Weizhen Tang successfully gets a mental assessment, the “crazy” legal decision of Nortel now hangs over the Ontario and Canadian justice system.
Justice must not only be done, by it must be seen to be done, indeed….