Entertainment titans Garth Drabinsky and Myron Gottlieb face possible jail time after being found guilty on two charges of fraud in excess of $5,000 and a third charge of uttering a forged document while they were heading Livent.

Drabinsky and Gottlieb were convicted of deceiving investors with false accounting and financial statements at the live theater company to boost its earnings and share price.

Drabinsky, who recently produced CBC reality series Triple Sensation and biblical-themed movies, was found to have engaged in false invoicing, reducing expenses by shifting costs from one financial quarter to another or from one losing theatrical production to a future show, and inflating ticket sales for theatrical runs.

Lawyers for Drabinsky and Gottlieb failed to convince the judge that the duo were too busy producing Broadway plays to manipulate financial statements, a job they alleged was done by senior executives.

Drabinsky and Gottlieb were due back in court on April 8 for pre-sentence motions. Each fraud conviction carries a maximum penalty of 10 years in jail, while the maximum sentence for a count of forgery is 14 years. Drabinsky’s lead lawyer, Eddie Greenspan, said his team would need to review the judgment before deciding on a possible appeal.

Files from Etan Vlessing