06:01:16 EDT Wed 24 Apr 2024
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Diversified Royalty Corp
Symbol DIV
Shares Issued 113,751,248
Close 2016-07-22 C$ 2.26
Market Cap C$ 257,077,820
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Diversified Royalty ex Bennett sees conviction upheld

2016-07-23 10:46 ET - Street Wire

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by Mike Caswell

A New Jersey judge has confirmed the jury conviction of John Bennett, the 80-year-old West Vancouver man who carried out a scheme to pay kickbacks to secure U.S. federal government contracts. Mr. Bennett had asked that the judge throw out the verdict, calling it "fundamentally unfair." He had said that prosecutors failed to prove any fraud on his part.

The judge, however, has ruled that the verdict must stand. In an order filed on July 20, 2016, District Judge Susan Wigenton has denied Mr. Bennett's request in its entirety. She did not provide any reasons, but prosecutors said that the evidence at trial overwhelmingly proved that Mr. Bennett had committed major fraud against the United States. The evidence included testimony from two of his former employees who said that they knew what they were doing was illegal and Mr. Bennett knew it too.

For Mr. Bennett, the ruling means that his only recourse now is to an appeal court. Given that he has vigorously contested the case to date, it seems very likely that he will file an appeal. He is also still awaiting his sentencing, which is scheduled for Aug. 9, 2016.

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