Add this to the telecom scandal sheet: The U.S. Securities and Exchange Commission has filed civil fraud charges against four former executives of Toronto-based Nortel Networks. The against the defendants, all ex-vice presidents for Nortel operational units, follow similar charges filed earlier this year against three former top executives, including one-time CEO Frank Dunn and ex-CFO Douglas Beatty.
The SEC isn't making much of the six months of silence between the filing of charges, which are related to an alleged 2003 accounting scandal when all those charged worked for Nortel. However, current Nortel employees and investors certainly hope there isn't yet another shoe to drop in the future, as the company finally seems to be emerging from the restatements and setbacks related to its past financial problems. Nortel, in fact, has hinted it may go on an acquisition binge though no big deals have happened yet.
- The Toronto Globe and Mail covers the SEC charges