Nortel: Now the fun begins
With the Attorney General in Dallas asking Nortel for all kinds of documents, Nortel's accounting troubles look like they are headed toward the criminal arena. Can anyone say fraud? It is impossible to tell who the authorities have targeted but you have to believe that no one is going to go down by themselves. Once the Attorney General hones in on someone, you can bet they will squeal like a pig and give up a whole mess of people - most likely finance types who helped goose Nortel's results over the past couple of years. There is speculation the Attorney General was encouraged to move into action by the SEC, which is conducting its own investigation. In this age of corporate governance and Sarbanes-Oxley, the SEC clearly wants to come down hard on any company or executives that breach the rules. This story, my friend, is about to become really hot!
