Canadian Police To Investigate Nortel

Nortel has been reeling since March when the company suspended its chief financial officer and controller after finding problems in its bookkeeping procedures. This suspension led the Securities and Exchange Commission to start a probe into the company's financial situation. It also led to the firing of the two suspended employees and chief executive officer Frank Dunn.

Nortel said its bookkeeping issues have been the subject of an ongoing review by Canadian police. The company also said that it plans to cooperate fully with the police in connection with the investigation.

The criminal investigation announcement comes just days before the Nortel plans to announce estimated results for the first half of 2004 on Thursday. Nortel's stock was trading down 2 percent Tuesday morning at $3.35.

*This story courtesy of CommsDesign.com.