Nortel Networks to pay SEC fine for accounting fraud

Posted on June 9th, 2007

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.

Related posts:

  1. Merge Discloses Accounting Errors and Irregularities
  2. Fired HealthSouth CEO sues the company
  3. Losses and Changes at Merge Technologies
  4. Accounting Problems at GM; Last Year’s Losses Increase
  5. AIG to settle for $1.5 billion soon

Comments (1)

  • michael webster
    12 June 2007 at 9:59 pm |

    Ever wonder why there is so much fraud originating out of Canada – 100 million versus 1 million reasons.

    Reply

Leave a comment

Note that comments which are abusive to the author or other commenters will not be published. Also, comments promoting any multi-level marketing companies, pyramid schemes, or business opportunity scams will not be published. Please do not assume that the author agrees with or endorses any comments left by others.