BusinessCorporate FinanceSEC swoops on Nortel executives

SEC swoops on Nortel executives

SEC files civil fraud charges against four former senior executives of Canadian telecommunications group Nortel for accounting fraud

Four former executives of Canadian telecommunications group Nortel have been
charged with repeated acts of accounting fraud by
the Securities and Exchange
Commission
.

The executives, Frank Dunn, Douglas Beatty, Michael Gollogly and MaryAnne
Pahapill, have been charged with bridging gaps between Nortel’s true
performance, its internal targets and
Wall Street
expectations.

The complaint alleges that these individuals engaged in this misconduct while
serving as top corporate executives of Nortel between September 2000 and January
2004.

During that time, Dunn served as chief financial officer and chief executive
officer; Beatty as controller and chief financial officer; Gollogly as
controller; and Pahapill as assistant controller and vice president of corporate
reporting.

‘The fraudulent conduct at issue here was egregious and long-running,’ said
Linda Thomsen, the SEC’s director of enforcement. ‘Each of the defendants
betrayed Nortel’s
investors and their misconduct gave rise to billions of dollars in
shareholder losses.’

Further reading:

Nortel CFO to step down

Nortel finally restates figures

Nortel delays financials

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