Mounties Target Nortel8/17/2004 7:51 AM Eastern
The Royal Canadian Mounted Police are riding toward Nortel Networks Corp.’s headquarters.
The vendor said Monday that it has received a letter from the RCMP’s integrated market enforcement team stating that a criminal investigation will take place, AP reported.
The U.S. Attorney's office in Dallas has also subpoenaed financial documents from Nortel as part of a criminal investigation in the United States, and securities regulators in both countries are investigating the company, AP reported.
"The RCMP are beginning a criminal investigation, but they did not provide additional detail," spokeswoman Tina Warren told AP Tuesday, adding that Nortel "will continue to cooperate fully" with authorities.
In late April, the struggling equipment vendor fired CEO Frank Andrew Dunn, chief financial officer Douglas Beatty and controller Michael Gollogly and said it would delay its first-quarter earnings report, review the past three years’ financial results and restate its 2003 earnings.