And It's About Time !
Nortel Exec's Charged by SEC
In the 2000 meltdown of telecom and tech business there were quite a few BIG fish that got taken down. Bernie Ebbers of Worldcom comes to mind as do some non-tech scammers and frauds .
Well right from the start the Nortel brass was in the thick of things.
What happened was that Nortel's sales were known to be going away because ALL their customers were finished with their current capital investment plans that involved the hardware made by Nortel. There was NOTHING in the pipe for Nortel and they should have told everyone that was the case.
Instead of the company reporting this fact to the shareholders and the public as public corporations are required to do they chose to keep it quiet and issued optimistic reports of continued growth in sales.
That is until after a number of senior exec's exercised stock options and unloaded $100+ shares ....... it was shortly after that the questions about the sales forecasts and earning reports came to light and the stock took a dive to somewhere around $2 a share...... screwing over investors and employees in a BIG way.
It did not take the SEC long to start an investigation..... BUT what the heck has been happening for the last 8 years?
OMMAG
In the 2000 meltdown of telecom and tech business there were quite a few BIG fish that got taken down. Bernie Ebbers of Worldcom comes to mind as do some non-tech scammers and frauds .
Well right from the start the Nortel brass was in the thick of things.
What happened was that Nortel's sales were known to be going away because ALL their customers were finished with their current capital investment plans that involved the hardware made by Nortel. There was NOTHING in the pipe for Nortel and they should have told everyone that was the case.
Instead of the company reporting this fact to the shareholders and the public as public corporations are required to do they chose to keep it quiet and issued optimistic reports of continued growth in sales.
That is until after a number of senior exec's exercised stock options and unloaded $100+ shares ....... it was shortly after that the questions about the sales forecasts and earning reports came to light and the stock took a dive to somewhere around $2 a share...... screwing over investors and employees in a BIG way.
It did not take the SEC long to start an investigation..... BUT what the heck has been happening for the last 8 years?
OMMAG
Labels: Bad Business, Bastards., Consequenses
posted by OMMAG at 3:59 p.m.
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