The U.S. Securities and Exchange Commission has filed charges against four former executives at Nortel Networks Corp., accusing them of engaging in accounting fraud to meet earnings forecasts.The Ontario Securities Commission, meanwhile, says it will hold a hearing on a series of issues involving three of the executives.
Nortel's former chief executive officer Frank Dunn, former chief financial officer Douglas Beatty, and former controllers Michael Gollogly and MaryAnne Pahapill were charged by the SEC Monday.
“The fraudulent conduct at issue here was egregious and long-running,” Linda Thomsen, director of the SEC's division of enforcement, said in a statement. “Each of the defendants betrayed Nortel's investors and their misconduct gave rise to billions of dollars in shareholder losses. The action we take today sends a strong message that officers of U.S.-filing foreign corporations will be held to the same standards of accountability that are required of all participants in the U.S. financial markets.”
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