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Nortel CFO ousted
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February 11, 2002: 5:15 p.m. ET
Nortel CFO quits because of violations of personal investment rules.
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NEW YORK (CNN/Money) - Nortel Networks said Monday its chief financial officer is resigning after violating company rules concerning personal investment transactions ahead of company news releases.
Nortel (NT: Research, Estimates) said recently-appointed CFO Terry Hungle transferred investments in the company's 401(k) retirement plan between stock funds investing mainly in Nortel shares and fixed income funds outside the trading window imposed on certain employees.
The company said in March 2001 Hungle moved about $78,500 from the stock fund to the fixed income fund ahead of a news release and then in December 2001 moved about $86,300 back to the stock fund before another news announcement.
On March 27, 2001 the company warned it would post a wider-than-expected first quarter loss on lower revenue.
On December 21, 2001 Nortel said its fourth-quarter loss would be narrower than expected.
"Let me emphasize that this matter solely relates to the personal investment transactions made by Terry Hungle and does not relate to the business, operations or financials of Nortel Networks," said Frank Dunn, Nortel president and CEO, in a statement.
Dunn will serve as interim CFO.
Nortel said the U.S. Securities and Exchange Commission and the Ontario Securities Commission have been informed about the circumstances concerning Hungle's investments.
After-hours trading of Nortel stock was temporarily suspended on Instinet. 
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