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

DavidHillier, the one person involved in the alleged scheme to bilk AtlasCopcoout 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 courtthat in 2002, just weeks after hestartedas the finance manager at the Sudbury office of AtlasCopco,he was called into his boss's office.

That boss wasDirkPlate, the general manager for thecompany in Sudbury.The person who brought him in that morning was LeoCaron, AtlasCopco'sMontreal-based human resources manager.

Hilliertestified that Platetold him how the company had shortchanged him on his pensionand how he andCaronhad found a way to make things right and correct the "shortfall."

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

He testified that the plan was for Montreal insurance broker PaulCaron, who acted as a middle man between AtlasCopcoand its benefits provider, to sendHillierfake invoices andhide the money in certain accounts.

Hilliersaid it was made clear that they would allget 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?

Hilliertold 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, AtlasCopcowas billed $32 million for its employee health benefits during those years, when only about $7 million was actually claimed.

Hillierreceived $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 PhilipZylberbergasked of the fraud.

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

He left the company soon after andin 2008, was served with a lawsuit by AtlasCopcoand provided them with details of theoverbillingscheme.

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. LeoCaronpleaded guilty the following year and was convicted to five years in prison.

Justice J.S.Pouporeinstructedthe jury, sitting with big binders of financial documents in their laps and holding neon yellowhilighters, to keepHillier'sdeal with the Crown Attorney in mind when listening to his testimony.

"You have good reason to look at DavidHillier'sevidence with the greatest level ofcare and caution," the judge said.

Hillierwill be back on the stand Fridayto face questions from Plate's lawyer RalphSteinberg.

He will also be cross-examined byPaulCaron, whois representing himself in court,so he will get to questionHillierdirectly about this fraud scheme they allegedly worked on together.