A third suspect has been arrested in an
alleged fraud case, in which three executives are charged with
conspiring to defraud Atlas Copco of more than $16 million.
Paul Caron, 67, of Montreal was
apprehended Oct. 15 as he entered Canada by way of Pierre Trudeau
Airport. Arrangements are being made to return him to Sudbury where
he will attend bail court.
Earlier this week, Dirk Plate, 68, and
Leo Caron, 66, were arrested for the same alleged offence.
The charges come following a complaint
by Atlas Copco that two of their senior executives conspired with the
company’s health-care provider to increase monthly billing and
produce fraudulent invoices. The excess money was split between the
A Joint Forces fraud investigation was
launched by the Greater Sudbury Police Service and the RCMP in April
2008, which led to the arrests.
Update: Atlas Copco
makes statement about alleged fraud case
Andrew Lyon, general manager of Atlas
Copco, has released a statement following the arrest of the three men
who allegedly defrauded the company of more than $16 million. The
“During the fall of 2007 Atlas Copco
discovered financial irregularities in some of Atlas Copco’s
business units in Canada. Following an internal investigation, Atlas
Copco concluded that company funds had been misappropriated by
certain employees over a period dating back to 1999. To Atlas Copco’s
knowledge, no customers were affected in any way by this suspected
Atlas Copco takes matters of fraud very
seriously and the employment of those believed to be involved was
immediately terminated for cause. The local police authority was
notified of the fraud scheme. Atlas Copco also initiated a civil law
suit to recover the misappropriated funds.
A comprehensive police investigation
has now led to the arrest of two former Atlas Copco managers, Dirk
Plate and Leo Caron.
Given that the investigation is
ongoing, we cannot make any further disclosures at this stage except
to say that Atlas Copco will continue to co-operate fully with the
law enforcement authorities.
Atlas Copco expects the highest ethical
standards from its employees and will also in the future act quickly
to address any breach of our code of conduct.”