Royal Group Technologies Ltd. founder Vic De Zen is rebutting charges brought against him by the Royal Canadian Mounted Police.
``I am completely stunned by these charges,'' De Zen said in a statement. ``For five years my name has been dragged through the mud with unfounded, sensational allegations leveled against me.''
The RCMP alleges De Zen and three other former executives committed fraud against Royal Group in a C$27.4 million (US$26.9 million) land transfer deal north of Toronto. The police also said De Zen and four others defrauded Royal of C$2 million (US$1.96 million) in the sale of a door subsidiary. RCMP announced the charges June 19. A court appearance is set for Aug. 11.
De Zen said that he has cooperated fully with the authorities.
``These investigations have proven that all the most serious allegations against me — including those relating to the St. Kitts transactions - were completely without merit. The two remaining allegations are equally without merit, and I intend to fight them vigorously in court.''
The alleged offenses occurred in 1997 and 1998. De Zen said he reached an agreement with Royal in 2005 regarding the transactions.
De Zen also was being investigated in connection with ties between Woodbridge, Ontario-based Royal Group and the St. Kitts Marriott Resort & the Royal Beach Casino. The resort is co-owned by De Zen.
De Zen and former Royal Group President Douglas Dunsmuir left the firm in 2004. Georgia Gulf Corp. of Atlanta bought it in 2006.
De Zen, Dunsmuir, former Chief Financial Officer Gary Brown and former Vice President of corporate finance Ron Goegan are the accused in the alleged land flip deal. In the door subsidiary case, the accused are De Zen, Dunsmuir and Goegan, as well as former Vice President Luciano Galasso and former director of accounting Gordon Brocklehurst, a Canadian Press report said.