Global Crossing Settles With SEC
NewsMax.com Wires
Tuesday, April 12, 2005
FLORHAM PARK, N.J. -- Global Crossing Ltd. on Monday said it settled a three-year investigation launched by the Securities and Exchange Commission into the telecommunication company's business practices and those of its top three executives.
The SEC issued a cease-and-desist order against Global Crossing and three executives: former CEO Thomas Case, former accounting officer Joseph Perrone and former chief financial officer Dan Cohrs. No monetary penalty was assessed against the company, which neither admitted nor denied the allegations that it failed to disclose the extent to which its results were dependent on swaps of fiber-optic network capacity with other telecom companies, or so-called reciprocal transactions.
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The order finds Global Crossing did not comply with certain reporting obligations under the securities laws and requires the company to refrain from committing any future violations. However, the order states that the SEC staff received significant cooperation from the company during its investigation.
The SEC decided in December not to charge or fine Gary Winnick, Global Crossing's founder and former chairman, in the investigation.
Global Crossing shares fell 6 cents to close at $14.74 on the Nasdaq Stock Market.
© 2005 The Associated Press
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