Former Royal Group Technologies Ltd. executives have been acquitted of all fraud charges they faced.
Ontario Justice Richard Blouin acquitted the defendants because of a lack of evidence that the executives were deceitful. He announced his verdict in the Oshawa court Dec. 10, after hearing closing arguments. Court records show all charges were dismissed that day.
Vic De Zen a, former Royal Group chairman and president, was the central figure in the trial. Others acquitted include former Royal President Douglas Dunsmuir, former finance Vice President Ronald Goegan and former Chief Financial Officer Gary Brown. These three were charged with profiting on a parcel of land sold to Royal Group.
As well, crown attorneys alleged that De Zen, Dunsmuir, Goegan and former director of taxation Luciano Galasso and director of accounting Gordon Brocklehurst exercised a warrant that should have been paid to Royal Group.
The executives had been charged with fraud for their role in buying a land parcel and then reselling it to Royal Group for a C$6.5 million profit. De Zen and others also face fraud charges stemming from the issuance of warrants in the sale of a subsidiary.
De Zen was fired in 2004 and the company was sold to Georgia Gulf Corp. in 2006. The company, now called Royal Group Inc., was until recently the largest profile and pipe extruder in North America. It is now the No. 2 company, according to Plastics News' most recent survey, with estimated sales of $730 million.
De Zen now heads a new profile extrusion company, Vision Extrusions Ltd. of Woodbridge, Ontario.