Speed comes at a price - Bob Colwell, former chief architect at Intel
|
|
|
Former Nortel executives are in the dock for fraud
THREE FORMER EXECUTIVES of Canadian network giant Nortel are in the dock over allegations they misrepresented financial results in order to collect fat bonuses.
Nortel, at one point one of the largest network equipment makers, has seen its three former top executives indicted for fraud, with prosecutors claiming ex-CEO Frank Dunn, CFO Douglas Beatty and controller Michael Gollogly stuck their hands in the cookie jar. The three men are accused of misrepresenting the firm's financial results during 2000 through 2004 to gain bonus payments, allegedly defrauding investors.
Prosecutor Robert Hubbard said in court, "This cookie jar approach allowed the accused to trigger lucrative cash and stock bonuses to themselves."
Last year Nortel's patent portfolio was auctioned off to a consortium that included Apple and Microsoft for $4.5bn after the firm filed for bankruptcy protection. It was a dramatic fall from grace for a company that in 2000 represented 33 per cent of the value on the Canadian stock exchange.
Justice Frank Marrocco told prosecutors they did not have to explicitly identify evidence of deliberate falsification of records. The trial comes three years after Dunn, Beatty and Gollogly were charged and the trio could face up to 14 years in the slammer if found guilty. µ
Tags: Hardware
Share this:
Share
So they are going to nail these three. Nice job. How about all those morons who tanked the entire world economy and took multi-hundred million dollar bonuses. Then, they were hired by the government to "fix" it. Yeah the "fix" is sure in. And it will be for a long time.
These three clowns are really just a joke now. Nortel was toast before the books were cooked. The company was a mess.
But, you won't see any perp walks for any of those who really hurt us....!
Me so confused - since when is it illegal to cook the books to make quarterly financials? Isn't this common-place, and even done by just about ALL publicly traded companies?
Nortel's largest downfall was between the years 2000 to 2004 which they never recovered from. These three stealing probably didn't make a dent in Nortel's downfall but even so I hope they get the book thrown at them in the courts over this. Normally execs get let off with a slap on the wrist but given that this is Nortel which had to lay off tens of thousands of people in Canada alone while these pricks were stealing I think they'll get what's coming to them.