Former Nortel executives acquitted

Jan. 14, 2013 at 2:47 PM
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OTTAWA, Jan. 14 (UPI) -- A judge in Canada found three former Nortel Networks executives innocent Monday in a case of alleged accounting fraud.

Nortel, once Canada's largest company by stock value, filed for bankruptcy four years ago and liquidated most of its assets. It was caught short on reserves when many of the technology supply companies it had purchased lost their value when the bubble burst.

Prosecutors charged the executives, former Chief Executive Officer Frank Dunn, former Chief Financial Officer Douglas Beatty and former controller Michael Gollogly, of moving cash reserves around so that quarterly reports would indicate the company was doing better than it was, which in turn would set them up for large bonuses, The New York Times reported.

The trial included more than 4 million documents, but Justice Frank Marrocco of the Ontario Superior Court sided with defense attorneys who allowed that the executives used aggressive accounting practices but said they did not commit any crimes in doing so, the Times said.

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