Nortel Networks will be fined up to $100 million for accounting fraud issues. The SEC began investigating Nortel in 2005 on the civil level. In 2005, the company admitted to overstating revenue by $3.4 billion. $100 million won’t amount to much for Nortel, which had revenue of $11.4 billion last year. The company has already paid $1 million Canadian to the Ontario Securities Commission to settle that agency’s claims against the company.
The SEC is also suing the company’s former CEO, Frank Dunn, and three other former executives. They are accused of falsifying earnings from 2000 to 2004 in order the meet Wall Street’s expectations and to garner higher bonuses. Nortel is suing the executives as well, seeking the return of bonuses equalling $10.5 million.
I am happy to receive documents on behalf...
12 Jun 07 at 9:59 pm
Ever wonder why there is so much fraud originating out of Canada - 100 million versus 1 million reasons.