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Nortel Trial Begins

More than three-and-a-half years after being charged with fraud, three former senior Nortel Networks Ltd. executives finally took the stand in Toronto on Monday and pleaded not guilty.

Following a four-year investigation, former CEO Frank Dunn, former CFO Douglas Beatty and former Controller Michael Gollogly were formally charged in June 2008 on seven counts each.

For more details of the allegations see the Light Reading story we ran in June 2008 -- Ex-Nortel Execs Charged With Fraud.

In January 2009, six months after the three men were charged, Nortel filed for bankruptcy protection and began the sale of its assets. (See Nortel Files for Bankruptcy Protection, The Decline & Fall of Nortel Networks and Nortel: It's All Up for Sale.)

That process is still limping along today, as the US$4.5 billion sale of Nortel's patents is still under review by the U.S. Department of Justice . (See Nortel Patent Sale Under Scrutiny .)

And Nortel still exists, though only as a company that is still in the process of winding down its operations and sorting out its bankruptcy terms. (See Nortel Gets Stay, CFO Steps Down and Nortel Posts $792M Cash Balance in Q3.)

For details of Monday's proceedings, check out this Globe and Mail report.

— Ray Le Maistre, International Managing Editor, Light Reading

paolo.franzoi 12/5/2012 | 5:45:27 PM
re: Nortel Trial Begins

 


Somehow, I still think this is better than the Lucent executive team getting multi-million dollar stay bonuses as the world crashed down on the company.


At least these guys had to work to cheat to get their money.


 


seven


 

sigint 12/5/2012 | 5:45:21 PM
re: Nortel Trial Begins

Seven, if green and incompetence were cognizable offenses, the world would be a much nicer place, wouldn't it?

sigint 12/5/2012 | 5:45:21 PM
re: Nortel Trial Begins

The title of this article left me disoriented - how on earth could a bankrupt company trial a product? There are trials, and then there are trials.

macster 12/5/2012 | 5:45:20 PM
re: Nortel Trial Begins

What happened to "innocent until proven guilty"?

shygye75 12/5/2012 | 5:45:19 PM
re: Nortel Trial Begins <div>


What happened to "innocent until proven guilty"?


That's a black-and-white concept for a very gray world.

</div>
paolo.franzoi 12/5/2012 | 5:45:19 PM
re: Nortel Trial Begins

Having dealt with Lucent and Nortel back in the day watching them do some stuff that is really bad (I remember Winstar and one of those vendors exchanging 5ESS boxes and each exchange was taken for revenue for example), I am pretty sure these guys are guilty.


&nbsp;


seven


&nbsp;

macster 12/5/2012 | 5:45:18 PM
re: Nortel Trial Begins



<div style="color: #333333; font-family: tahoma, arial, geneva, helvetica; font-size: 14px; line-height: 19px; text-decoration: none; text-align: -webkit-left; background-color: #f3f6f9;">
<div style="font-size: 14px; line-height: 19px; text-decoration: none;">

That's a black-and-white concept for a very gray world.

</div>
</div>
In that case, everyone is guilty - from some level of "crony capitalism" to downright graft. Shades of grey, no? Personally, I'd refrain from making statements that can be construed as being libelous.&nbsp;


paolo.franzoi 12/5/2012 | 5:45:17 PM
re: Nortel Trial Begins

It is only libel if it is not true.


seven


&nbsp;

macster 12/5/2012 | 5:45:17 PM
re: Nortel Trial Begins

Not really.


Anyway, is it "true"? It's not the case here, or not the case yet, or whatever. Gist is, it's just not true as of 18 Jan.

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