Global Crossing’s Winnick to be Fined to End SEC Probe

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Global Crossing Ltd. founder Gary Winnick and at least two other executives are likely be fined under an agreement that will end an SEC probe into the company’s accounting practices, Bloomberg News reported this morning.

SEC commissioners are expected vote Thursday on the proposed settlement, which would allow the Bermuda-based company to avoid a penalty. It’s not known how much the former officials would pay. The three-year probe looked into whether Global Crossing overstated revenue.


Winnick founded Global Crossing in 1997. The company accumulated nearly $12 billion in liabilities building a massive worldwide fiber-optic network. Winnick sold shares worth $578 million before Global Crossing filed for bankruptcy protection in January 2002. He had stepped down as the company’s chairman nearly one month earlier.

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