The SEC has charged four former Nortel executives with accounting fraud, The four are former Chief Executive Frank Dunn, former Chief Financial Officer Douglas Beatty, former Controller Michael Gollogly and former Assistant Controller MaryAnne Pahapill.
According to Reuters:
The Securities and Exchange Commission is seeking a permanent injunction, civil monetary penalties, barrings as officers or directors of a public company, and disgorgement of ill-gotten profits against all four.
One of my co-workers thought to look up the word disgorge:
- to eject or throw out from the throat, mouth, or stomach; vomit forth.
- to surrender or yield (something, esp. something illicitly obtained).
- to discharge forcefully or as a result of force.
- to eject, yield, or discharge something.
We like the first definition the best. So go on Dunn, vomit up that cash!
Of course the next question is, if Frank Dunn (et al.) do vomit up the cash, who does it go to? It shouldn’t really go back to Nortel because it wasn’t theirs to start with. It should go back to share holders.