Former Nortel CEO Facing Fraud Charges: RCMP
Posted June 19, 2008 12:00 pm.
This article is more than 5 years old.
Royal Canadian Mounted Police have laid fraud charges against former Nortel Networks (TSX:NT) chief executive officer Frank Dunn and two other former executives of the telecommunications equipment maker.
Dunn, 54, is charged with fraud affecting the public securities market, as well as with falsification of accounts and documents and involvement in issuing a false prospectus.
Facing similar counts are former Nortel chief financial officer Douglas Beatty, 53, and former corporate controller Michael Gollogly, 49.
RCMP allege criminal activity within Canada’s premier technology company between the beginning of 2002 and mid-2003, when Dunn, Beatty and Gollogly are accused of fraudulently misstating financial results.
The three men were dismissed from Nortel in 2004.
The company issued a statement stressing that it has not been charged and was not the target of the investigation.
“The company has fully co-operated with the RCMP and will continue to do so,” Nortel added.
“Nortel is rebuilding a great Canadian company while upholding the highest standards of integrity and ethics.”
