Former producers of the Tony Award-winning Broadway musical RAGTIME have been convicted for participating in large-scale accounting fraud.
Garth Drabinsky and Myron Gottlieb, who founded Toronto, Canada-based theatre company Livent in the 1990s, were convicted on two counts of fraud and one count of forgery on Wednesday (25Mar09).
Ontario Superior Court Justice Mary Lou Benotto ruled Drabinsky, 59, and Gottlieb, 65, knowingly overstated their company's financial position to investors from 1994-1998.
The fraud was revealed in 1998 when Livent filed for bankruptcy - the same year their production of Ragtime won the Tony for Best Original Score, Book, and Orchestrations and Best Featured Actress for Audra MCDonald.
The pair was indicted in the U.S. in 1999 on charges that they had misappropriated millions of dollars from American investors; they still face charges in the country.
Canadian authorities charged Drabinsky and Gottlieb in 2002. They face a maximum of 14 years in prison when they are sentenced at a later date.
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