Canadian officials have charged several former Nortel executives with fraud for misstating financial results at the beginning of the decade.
Former CEO Frank Dunn faces seven counts. Also charged are former CFO Douglas Beatty and former corporate controller Michael Gollogly, according to the Royal Canadian Mounted Police.
The three are also alleged to have made false entries and omitted materials in Nortel’s books. The charges date to between the start of 2002 and June 30, 2003, about the time of a recession in the telecommunications market, during which Nortel reported billions of dollars in losses and had to layoff thousands of employees.
In October 2007, Nortel paid $35 million to settle civil charges filed by the U.S. Securities and Exchange Commission (SEC) related to similar fraud charges.
More Broadband Direct:
• CableLabs CEO offers up tru2way to telcos during NXTcomm keynote
• Telecom warning: Take steps to innovate, or else
• Big Ten Network scores a deal with Comcast
• FCC to slap Verizon for retention practices
• CMC adds 4 more companies to HITS AxIS roster
• Harmonic celebrates 20-year milestone; gears up for Expo
• Survey: 51% of telecom execs say bandwidth will break Internet
• Motorola shares hit 5-year low