A jury has determined Wednesday in a Sudbury courtroom that two men have defrauded industrial company Atlas Copco of $24 million.
Paul Caron was an insurance broker in Montreal who oversaw the company’s employee benefits and Dirk Plate was a general manager at the company’s Sudbury office from 2001 to 2007, when the fraud scheme took place.
CBC News said that the two men will remain out of custody until the sentencing hearing on Oct. 25.
In total, four men have been identified as responsible for the scheme that overbilled Atlas Copco insurer
Manulife Financial of millions of dollars.
Leo Caron, the Montreal-based human resources manager for Atlas Copco, pleaded guilty and was sentenced last April to five years in prison.
According to Leo’s testimony the previous month, the fraud began as far back as 1996. He also testified that back in 2007, the actual cost of employee benefits for Atlas Copco was $4.5 million, but Paul Caron charged the company for $9 million.
Financial controller David Hillier of the Sudbury office returned the $400,000 he allegedly stole and agreed to testify in exchange for immunity against charges.
Hillier was purportedly invited into the scheme in 2002. He testified that he was requested by Plate and Leo Caron to remedy a pension downfall.
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