Former Global Crossing head escapes charge

Fiber Optics Weekly Update, Dec 17, 2004

The former head of Bermuda-based Global Crossing will not face civil charges in an accounting scandal.

The Securities and Exchange Commission's enforcement division had recommended civil charges against Gary Winnick, the company's one-time chairman.

The division had reached a tentative deal with Winnick in which he would pay $1 million to settle charges that he failed to disclose fully the terms of several deals to swap fiber-optic network capacity.

But the SEC board rejected the recommendation, saying the agency did not have enough evidence tying Winnick to the alleged faulty disclosures.

Global Crossing cut deals with rivals in which it exchanged nearly identical amounts of fiber-optic network capacity with rivals so both parties could book much-needed revenue. Winnick was not chairman of the company at the time of those deals.