Garth Drabinsky (photo right) and Myron Gottlieb have been found guilty of fraud and forgery at Livent Inc., the award-winning live theatre company they co-founded.
Ontario Superior Court Justice Mary Lou Benotto delivered her judgment in a
"The creative success that you achieved due to your company was spectacular," said Benotto.
But her tone quickly changed as she cited a "deliberate misrepresentation" in Livent's public offering and "widespread and long-standing" fraud thereafter.
"I have been satisfied beyond reasonable doubt that you knew what was happening . . . That's a guilty verdict."
Gottlieb's posture barely shifted and Drabinsky dropped his head after the verdict was announced.
About 120 spectators, more than there were seats, packed the courtroom. Among them were members of both defendants' families, some of whom broke into tears at the news.
Benotto did not elaborate on her decision, instead, releasing an 86-page document recapping the trial and the reasons for her decision.
"The financial statements were manipulated. The object was to keep income as close to budget as possible," she wrote. "This was done by moving expenses from one period to another, by amortization roles, by applying the expenses of one show to another and by allocating operating costs to fixed asset accounts."
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