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UPDATE: The accused have plead guilty to several charges. From the news release:

The Conservative Fund Canada pleaded guilty today before the Ontario Court of Justice to charges under sections 497(1)(l) and 497(1)(q.01) of the Canada Elections Act. The Conservative Party of Canada also pleaded guilty, under section 507 of the Canada Elections Act, to two charges of being a registered party whose chief agent committed offences under section 497(1)(l) and 497(1)(q.01) of the Act. The charges relate to incurring election expenses that exceeded the maximum allowed under the Canada Elections Act and providing a return that did not set out all expenses incurred in respect of the 39th federal election in 2006. During that election, the Conservative Fund Canada acted as the Chief Agent of the Conservative Party of Canada.

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By Glen McGregor

OTTAWA — Amid rumours of a settlement in the case involving violations of election spending limits, lawyers representing the Conservative Party and four party officials are expected in court Thursday afternoon.

Prosecution sources are tight-lipped about a possible resolution of charges stemming from the “in and out” affair from the 2006 election campaign.

But sources tell the Ottawa Citizen there is discussion of a possible end to the long-running legal battle.

[np-related]

It is unclear if any or all of the defendants will be entering pleas. The charges carry maximum penalties of $2,000 fines and one year in prison.In February, the director of public prosecutions laid various charges against the Conservative party and against Conservative Senators Irving Gerstein and Doug Finley, as well as former party executives Susan Kehoe and Michael Donison. The charges came after a three-year investigation by the Commissioner of Canada Elections William Corbett, who referred the case to the public prosecutor.