SEC Charges 4 Former Nortel Senior Executives With Securities Fraud

The Securities and Exchange Commission filed civil charges today against four former senior executives of Nortel Networks of an accounting fraud that helped the company meet internal targets and Wall Street expectations.

The investor protection agency said in a statement that it charged former Chief Executive Frank Dunn, former Chief Financial Officer Douglas Beatty, former controller Michael Gollogly and former assistant controller MaryAnne Pahapill.

The SEC is seeking a permanent injunction, civil monetary penalties, officer and director bars and disgorgement plus prejudgment interest against all four defendants.