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SEC May Charge Former Lucent Exec McGinn

WAYNE, N.J.— In a filing Monday (Nov. 8), Lucent said that former CEO Richard McGinn, former executive John Heindel, and an unnamed former employee could face a civil lawsuit by the Securities and Exchange (SEC) for Foreign Corrupt Practices Act (FCPA) violations in Saudi Arabia.

Lucent has been under fire for the last few years by the SEC for FCPA violations in both Saudi Arabia and in China. In Saudi Arabia, the violations center on a bribery plan implement by Lucent to win infrastructure contracts. During its investigation in Saudi Arabia, the SEC also found problems in Lucent's China operation, leading the ouster of the company's China execs in April.

Now the SEC has its eyes set on filing charges against McGinn, Heindel, and a third former employee for the problems encountered in Saudi Arabia. In its Form 8-K filing on Monday, Lucent said that the three former employees received "Wells" notices from the SEC. According to Lucent, these notices state that the SEC is considering recommending that civil actions be taken against McGinn, Heindel, who headed Lucent's Saudi Arabia operations, and the third former employee for FCPA violations.

Lucent has not received a "Wells" notice for its part in the Saudi Arabia bribery scheme. However, the company didn't rule out receiving a notice since the SEC investigation is still being conducted.