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Velocita documents on Global Crossing wanted by US' SEC

Velocita Corp received a subpoena from the Securities and Exchange Commission for information on Global Crossing Ltd, a fiber-optic network operator that filed for bankruptcy protection.

Velocita is at least the third telecommunications company, along with Qwest Communications International Inc. and 360networks Inc, to disclose that it's received requests from the SEC for information on transactions with Hamilton, Bermuda-based Global Crossing.

"The company intends to cooperate fully with the SEC's request for such documents," closely held Velocita said in a statement. The company couldn't immediately be reached for comment.

The SEC and Federal Bureau of Investigation are examining allegations from investors and Roy Olofson, former vice president of finance at Global Crossing, who have said the company inflated revenue and misled shareholders.

Global Crossing controls about one-fifth of the fiber-optic networks leaving the US. It's under scrutiny for the way it reported sales of capacity on those lines in exchange for use of customers' networks, in swap contracts.
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