Admitted Atlas Copco fraudster testifies against former colleagues in $24M trial

David Hillier, the one person involved in the alleged scheme to bilk Atlas Copco out of $24 million who hasn't been charged, took the stand in a Sudbury, Ont., courtroom Thursday to testify against his former counterparts.

• $24M Atlas Copco fraud case one of largest in northern Ontario's history
• 'Magnitude of greed astounding' in Sudbury fraud case

He told the court that in 2002, just weeks after he started as the finance manager at the Sudbury office of Atlas Copco, he was called into his boss's office.

That boss was Dirk Plate, the general manager for the company in Sudbury. The person who brought him in that morning was Leo Caron, Atlas Copco's Montreal-based human resources manager.

Hillier testified that Plate told him how the company had shortchanged him on his pension and how he and Caron had found a way to make things right and correct the "shortfall."

"He wasn't comfortable. He thought it should have been more," Hillier said in court.

He testified that the plan was for Montreal insurance broker Paul Caron, who acted as a middle man between Atlas Copco and its benefits provider, to send Hillier fake invoices and hide the money in certain accounts.

Hillier said it was made clear that they would all get a share of the money.

"I didn't know what to make of it. It was coming at me," he told the court.

"I didn't have anything else to believe except what they were telling me."

Regret?

Hillier told the court that specific dollar amounts were never discussed.

"From what I was comprehending, the numbers were to be fairly large ... more than six figures." 

In total, Atlas Copco was billed $32 million for its employee health benefits during those years, when only about $7 million was actually claimed.

Hillier received $465,000 in four payments during the time he was based out of Sudbury between 2002 and 2006.

"Do you regret doing this?" Assistant Crown Attorney Philip Zylberberg asked of the fraud.

"Yes. Very, very, very much," answered Hillier. "I've obviously come to seriously regret it."

He left the company soon after and in 2008, was served with a lawsuit by Atlas Copco and provided them with details of the overbilling scheme.

Offer of immunity

Then, in 2009, when he was approached by police investigators, he agreed to give them information and give back the money he stole, in exchange for immunity, meaning he cannot be charged.

The other three were charged with fraud in 2012. Leo Caron pleaded guilty the following year and was convicted to five years in prison.

Justice J.S. Poupore instructed the jury, sitting with big binders of financial documents in their laps and holding neon yellow hilighters, to keep Hillier's deal with the Crown Attorney in mind when listening to his testimony.

​"You have good reason to look at David Hillier's evidence with the greatest level of care and caution," the judge said.

Hillier will be back on the stand Friday to face questions from Plate's lawyer Ralph Steinberg.

He will also be cross-examined by Paul Caron, who is representing himself in court, so he will get to question Hillier directly about this fraud scheme they allegedly worked on together.