Canada ad execs charged with fraud

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[Montreal] Jean Brault, president of Montreal ad agency Groupaction, and Chuck Guite, the retired public servant who managed Canada's sponsorship program between 1997 and 1999, were arrested last week and charged with five counts each of fraud and one count each of conspiracy to commit fraud. Canada's Auditor General Sheila Fraser issued a damning report in February about misuse of much of the $190 million in sponsorship funds funneled through ad agencies working for the government since 1995 (AA, Feb. 16). Both men pleaded not guilty and were released on bail. They are due in court Sept. 7 to face charges that they defrauded the Canadian government of nearly $2 million.
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