OSC Could Drop Probe

Looks like ex-Nortel CEO Frank Dunn and Nortel may be able to escape being investigated by the Ontario Securities Commission. In an appeal, the OSC said it would not be possible to continue the probe unless a decision is overturned that restricts the OSC from questioning Dunn, who was fired with cause two years ago. “To do so would disqualify all those who have been involved in the investigation to date from participating,” OSC’s lawyer Allan Rock said in a Sept. 15 filing requesting that the Ontario Court of Appeals hear the case. That “would effectively end an important investigation that has been under way for more than two years.”  According to Bloomberg, Dunn has argued that any testimoney he provides will be gives to the SEC and could be used in a U.S. criminal investigation, which would violate his right against self-incrimination. The Ontario court considering the the OSC’s appeal hasn’t said whether it will hear the two sides’ arguments.


8 Responses to “OSC Could Drop Probe”

  1. Steve Says:


  2. Observer Says:

    To speed things up exponentially, the police probes would better be repaced by the U.S. DA’s office and experienced lawyers who know what to ask and look for. Do Statue of Limitation issues apply here? They better prepare this case right or we run the risk of witnessing another OJ of antitrust (Microsoft) that didn’t fool the courts as easily in Europe =)

    In the U.S., Nortel tried to dismiss a case on jurisdictional grounds a while back and they actually succeeded in one where Deloitte was dropped from the case when a U.S. lawyer for the plaintiff failed to prepare well enough!

    Canada lacks teeth even more so.

    After almost a year in silence and endless stall tactics/delays, 800 accountants to restate that which they swore they would never do again, then changing numbers last minute that were passed by Cutler soley on revenue recognition to allevieate a delisting threat (they need to dilute into), with numbers that still remained false and later revised with no gurantees added that tanked the stock with the benefit of reducing liability on share settlement(fraud), as they extend repairing controls making it easier to demise as they sell assets… etc…

    Is anyone watching this stuff?

    What are they doing about the “difficult to find” people and mass orchastration, always overstating never under, presenting financials on their web site like a sales flyer, which are chronically overstated to supposed error never under strangely enough… with good will under “safe harbour” extended to the new puppets that were not at the crime scene as they hold so many hostage trying to keep the white elephant alive as it prints paper, sells assets/business, loses money and they still pay themselves lotteries. Only the stars have changed in this soap opera, as many are still there.

    The settlement holding so many hostage as officers plead bargained, allowed Nortel to keep exorbitant managment pay practices alive that much longer and is probably their greatest motive towards sustainance.

    Who financed this tanking stock over the last 19 years and why? How long has all this really gone on, ironically once winning awards for disclosure. Did good guys really turn bad at one point, or were they bad all along as the perfect crime was never found I question.

    Enron/Worldcom should have been so lucky to have been afforded such enormous liberties, still trade, extend repairing controls, sell assets, keep reivising with no guarantees, tank the stock to call this profit like triple profits Q205 finacials they posted like a sales flyer on their web site, as so many departed, and they cut product and business hoping to pay themselves lotteries that much longer, like 3 to 5 years… juggling cash/debt/business

    Who on earth trusts Nortel now, where are our ethical academics? I feel like we are being tossed in a horror story of the Twighlight Zone where the monsters are winning =)

  3. rock samborsky Says:

    Get a life, Jamezzz. You’re babbling nonsense yet again. It’s time for your pills.

  4. Mary Says:

    rock samborsky , don’t you see it?
    Nortel is a laughing company, NT is a laughing stock and All Nortel All the Time is a laughing board.

  5. observer's psychiatrist Says:

    ah yes – hello my fellow blog members, as it quite obvious at this point that my patient observer (jamezzz) has been relapsing and continues to refuse his paranoia medication, and as a result continues to rant away on the library pc with internet connection that the mental hospital provides for its patients.

    I have discussed jamezzz extensively with my colleagues so that we can find the right treatment for him, and in the end we’ve all agreed that we should not deny jamezzz the privilege to rant his paranoia, for it won’t be long till the men in the white suits come to take jamezzz to a special place where there is lots of padding and no sharp objects to speak of.

  6. Leave a Reply Says:

    You really are deranged Observer

  7. kramer kramer Says:

    Frank Dunn has little to worry about in Canada from Canadian authorities…if Karla Homolka is an example. The SEC and US DOJ are different stories, lets see what happens south of the border.

  8. Luke Says:

    I’ve been in Nortel for years, I know how smart and strong they are. The first tought that came up in my mind when Frank Dunn came in as CEO was: “that guy has nothing to do with Nortel! Why is he here? What’s his plan?”. When Frank Dunn came in, that’s when I left. He was playing his own personal game, abusing Nortel’s name and image.
    Nortel shaped the history of telecommunications, no dubt it will do it again. But of course, whoever is powerful is also hated.

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