Nortel faces criminal charges

Nortel Networks has been subpoenaed by a federal grand jury to supply documents as part of an ongoing criminal investigation being conducted by the US attorney’s office in Dallas. Nortel has been called to supply a range of documents to the court, including financial statements and corporate, personnel and accounting records dating from 1 January 2000. Specifically the court is looking into Nortel’s stock option plans as well as how the company booked revenue from sales transactions. Last October Nortel announced it would restate results from 2000 to the first half 2003. Its audit committee has yet to determine the extent of the irregularities, but has subsequently extended the investigation to the whole of 2003. The company’s CEO, chief financial officer and financial controller have also been given their marching orders.