[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Monday, 12 March 2007, 16:02 GMT
SEC charges former Nortel bosses
Outside of Nortel offices
A number of top firms have been caught up in accounting problems
US regulators have filed civil charges against four former executives at telecom-equipment firm Nortel Networks.

The Securities and Exchange Commission accused the executives of accounting fraud that boosted earnings between September 2000 and January 2004.

Among the accused are former chief executive Frank Dunn and ex-financial officer Douglas Beatty.

Nortel said it was unable to comment on the proceedings, but would cooperate with the SEC investigation.

Former-controller Michael Gollogly and ex-assistant controller MaryAnne Pahapill were the other Nortel executives charged by the SEC.

Should the charges be proved then the watchdog wants the four to be fined, barred from working as officers or directors of a public company, and have to repay any proven ill-gotten gains.

"The fraudulent conduct at issue here was egregious and long-running," the SEC said.

"Each of the defendants betrayed Nortel's investors and their misconduct gave rise to billions of dollars in shareholder losses," said Linda Thomsen, the SEC's enforcement director.

Since 2003, Nortel has had to restate its results each year as problems have come to light.


SEE ALSO
Microsoft in new web phone drive
19 Jul 06 |  Business
Error could spark Nortel default
10 Mar 06 |  Business
Nortel rises on corporate sales
08 Aug 05 |  Business
Nortel in $300m profit revision
11 Jan 05 |  Business
Nortel chief fired over finances
28 Apr 04 |  Business
SEC steps up Nortel audit probe
05 Apr 04 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific