In a move to realize revenue, meet internal sales targets and obtain sales bonuses, the SEC claims that nine Lucent employees improperly granted or failed to disclose various side agreements, credits and other incentives made to induce Lucent's customers to purchase the company's products.

The Lucent employees covered by the allegations include Nina Aversano, Jay Carter, Leslie Dorn, William Plunkett, John Bratten, Deborah Harris, Charles Elliott, Vanessa Petrini and Michelle Hayes-Bullock. One former WinStar employee, David Ackerman, was also accused of being engaged in a scheme with Plunkett that resulted in Lucent improperly recording a $125 million software purchase.

The SEC alleged that $511 million of revenue and $91 million in pre-tax income were recognized prematurely in quarterly results in 2000. The remaining $637 million in revenue and $379 million in pre-tax income should not have been recognized during Lucent's fiscal year 2000.

The company and employees Plunkett, Harris and Petrini have agreed to settle the matter without admitting or denying the allegations. Lucent will pay a $25 million civil penalty. Plunkett, Harris and Petrini all paid fines in excess of $100,000.

The seven remaining defendants have not reached settlements with the SEC. All, except Ackerman, have been charged with violating anti-fraud provisions of the federal securities laws and aiding and abetting violations of the reporting, books and records and internal control provisions of the federal securities laws.

The SEC has also charged Ackerman with aiding and abetting Lucent's violation of the anti-fraud provisions of the federal securities laws and the reporting, books and records and internal control provisions.

Lucent's shares fell $0.18 on Monday to close at $3.10.

By: DocMemory
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