Nortel update ....

The trial against the ex-Nortel executive continues and the salacious facts are coming out fast and furious now. "Ms. Verity testified she was annoyed that there were changes to accounting entries into late January, which she said was “very late” in the closing process. The final changes were made just two days before the company issued a press release announcing its 2002 results. http://www.theglobeandmail.com/report-on-business/nortel-changed-accounts-two-days-before-reporting-results/article2360645/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2360645

The last two changes saw Nortel suddenly reverse $25.5-million from a reserve for obsolete inventory that had just been created two weeks earlier. The Crown alleges the amount was reversed arbitrarily because the company discovered it had to book an unrelated $25.5-million cost for a business deal involving JDS Uniphase Corp. (JDU-T13.010.141.09%) and the executives wanted the bottom line to come out to the same amount.

In court Tuesday, Ms. Verity was shown journal entries she completed recording a $25,519,848 cost for the JDS deal, and a second entry recording a $25,519,848 reduction in the inventory reserve.

Crown attorney David Friesen noted the amounts matched exactly, and asked Ms. Verity whether there was any connection between the inventory reserve and the JDS deal. She said she was not aware of any."

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"Three former Nortel Networks Corp. (NRTLQ) executives are in criminal court accused of a $5 million fraud at what was once North America’s largest telephone-equipment maker. http://www.bloomberg.com/news/2012-01-16/former-nortel-executives-face-4-9-million-fraud-charges-in-canadian-court.html

Big bets in the day and not that long ago were all about juggernaut Nortel Networks Corp. Too big to fail absolutely not with these boyz in charge and whom do we now have dishing out denials? Familiar names to some of us and innocent until proven guilty is how it works. Hardly this observer is supposing with the conclusion appearing grim for the terrible threesome if convicted. "Former Chief Executive Officer Frank Dunn, former Chief Financial Officer Douglas Beatty and former Controller Michael Gollogly allegedly misstated financial results between 2000 and 2004, allowing them to pocket millions in bonuses. All three pleaded not guilty as the trial began today at Ontario Superior Court in Toronto."

M.Gollogly Frank Dunn D.Beatty

Nortel filed for bankruptcy in January 2009 after reporting $11.6 billion in consolidated assets against $11.8 billion in debt as of Sept. 30, 2008. "The company has since sold its business units for at least $7.5 billion, including the $4.5 billion sale in July of its patent portfolio."

Thats a baaaaaaad Bo Doggie

"A federal grand jury in Maryland has indicted former Vancouver stock promoter and Bodog Entertainment Group SA founder Calvin Ayre, claiming that Bodog has violated Maryland's anti-gambling rules. http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3a*BCSC-1931374&symbol=*BCSC®ion=C

The indictment, unsealed on Tuesday, Feb. 28, alleges that Bodog has paid at least $100-million in proceeds from on-line sports bets to players in the United States, with some of the money going to individuals in Maryland. (All figures are in U.S. dollars.) The indictment also charges three other Canadians: James Philip, David Ferguson and Derrick Maloney. The charges against the men are one count of conducting a gambling business and one count of money laundering, with the gambling charge having a five-year maximum sentence and the money laundering charge carrying a 20-year term. None of the men have been arrested.

As the feds moved in to shut down the US based site Mr. Ayre had much to say ... "I see this as abuse of the US criminal justice system for the commercial gain of large US corporations. It is clear that the online gaming industry is legal under international law and in the case of these documents is it also clear that the rule of law was not allowed to slow down a rush to try to win the war of public opinion."

Well good luck with that argument Mr. Billionaire. Appealing to the court of public opinion may just backfire when somebody tries to take over a government racket. Time shall tell and I wonder if this means Mr. Ayre is catching the first available flight to the USA jail cell so he can hone his defense.