TORONTO-Nortel Networks Ltd. said it received a letter from the Canadian police signaling its intention to begin a criminal investigation of the company’s financial situation.
The Royal Canadian Mounted Police will not be the first to launch an investigation into the company’s finances. The U.S. Securities and Exchange Commission and its Canadian counterpart also have begun investigations.
“Nortel Networks will continue to cooperate fully with the RCMP in connection with the investigation,” said the company.
Nortel also has set up its own internal investigation.
The wireless supplier had overstated its profits covering the years 2001 through 2003. It is yet to unveil its quarterly results for the year as a result of the financial inconsistencies.
