Internal fraud not external malice, was the cause of Nortel's demise:
" Investigators ultimately found about $3 billion in revenue had been booked improperly in 1998, 1999, and 2000.
More than $2 billion was moved into later years, about $750 million was pushed forward beyond 2003 and about $250 million was wiped away completely.
The accounting scandal hurt both Nortel's reputation and finances, as Nortel spent an estimated US$400 million on outside auditors and management consultants to retrain staff.
On April 28, 2004 amidst the accounting scandal, three of Nortel's top lieutenants—Douglas Beatty, CEO Frank Dunn and Michael Gollogly—were fired for financial mismanagement.They were later charged with fraud by the RCMP.
The United States Securities and Exchange Commission (SEC) also filed charges against them and four vice-presidents for civil fraud"
There are many other companies today, that are equally fraudulent.
" Investigators ultimately found about $3 billion in revenue had been booked improperly in 1998, 1999, and 2000.
More than $2 billion was moved into later years, about $750 million was pushed forward beyond 2003 and about $250 million was wiped away completely.
The accounting scandal hurt both Nortel's reputation and finances, as Nortel spent an estimated US$400 million on outside auditors and management consultants to retrain staff.
On April 28, 2004 amidst the accounting scandal, three of Nortel's top lieutenants—Douglas Beatty, CEO Frank Dunn and Michael Gollogly—were fired for financial mismanagement.They were later charged with fraud by the RCMP.
The United States Securities and Exchange Commission (SEC) also filed charges against them and four vice-presidents for civil fraud"
There are many other companies today, that are equally fraudulent.