Editing Nortel (section)

=== Illegal breach of trust in Nortel's Health and Welfare Trust ===

There have been reports of financial irregularities at Nortel's Health and Welfare Trust. [[Diane Urquhart]], a financial analyst, testified before a parliamentary committee that $100 million is missing from the HWT and that a $37 million loan to the corporation has not been paid back.<ref>[http://parlvuvod.parl.gc.ca/StreamLogger/2010/2010-03/000178b2.wmv Standing committee on Finance hearings] {{webarchive |url=https://web.archive.org/web/20150906000922/http://parlvuvod.parl.gc.ca/StreamLogger/2010/2010-03/000178b2.wmv |date=September 6, 2015 }}</ref> The HWT was an unregistered trust maintained by Nortel to provide medical, dental, life insurance, long-term disability and survivor income and pension transition benefits.<ref>[http://documentcentre.eycan.com/eycm_library/Project%20Copperhead/English/Court%20Orders/77.%20Settlement%20Agreement%20Order/EndorsementSettlement.pdf Superior Court of Justice&nbsp;– Ontario Endorsement] {{webarchive |url=https://web.archive.org/web/20100331035546/http://documentcentre.eycan.com/eycm_library/Project%20Copperhead/English/Court%20Orders/77.%20Settlement%20Agreement%20Order/EndorsementSettlement.pdf |date=March 31, 2010 }}</ref><ref>{{cite news |url=https://ottawa.ctvnews.ca/senate-kills-bill-that-would-help-disabled-nortel-workers-1.583953 |archive-url=https://web.archive.org/web/20121022025450/http://ottawa.ctvnews.ca/senate-kills-bill-that-would-help-disabled-nortel-workers-1.583953 |url-status=bot: unknown |archive-date=October 22, 2012 |title=Senate kills bill that would help disabled Nortel workers |work=CTV News |date=December 9, 2010 |access-date=March 12, 2011 }}</ref>
Until 2005 Nortel fully funded the disability insurance in its HWT. However, it is alleged that since then, the HWT Governance Committees and third party [[trustee]], [[Northern Trust]], breached their [[fiduciary]] duties to protect Nortel's disabled employees and survivors of deceased employees by allowing Nortel to misdirect over {{CAD|100}}{{nbsp}}million from the HWT for purposes inconsistent with the terms of the HWT.<ref>{{Cite web |url=http://ismymoneysafe.org/pdf/SystemicFailureofEmployerSponsoredDisabilityInsurance.pdf |title=Systemic Failure of Employer Sponsored Disability Insurance |access-date=February 5, 2016 |archive-url=https://web.archive.org/web/20160304000105/http://ismymoneysafe.org/pdf/SystemicFailureofEmployerSponsoredDisabilityInsurance.pdf |archive-date=March 4, 2016 |url-status=dead }}</ref>
As of March 1, 2012, Northern Trust continues to act as the paying agent for Canadian [[Nortel Retirees and former employees Protection Canada|Nortel pensioners]].<ref>{{cite web |url=http://www.kmlaw.ca/Case-Central/Overview/Status-Of-Case/?rid=107 |first=Koskie |last=Minsky LLP |title=Nortel Networks Corporation&nbsp;– Developments |publisher=Kmlaw.ca |access-date=May 26, 2012 |archive-url=https://web.archive.org/web/20111205225957/http://www.kmlaw.ca/Case-Central/Overview/Status-Of-Case/?rid=107 |archive-date=December 5, 2011 |url-status=dead }}</ref>