Acquirers are paying more, but they are doing so painlessly, since their own shares, which serve as their currency in stock-swap transactions, are as inflated as those of their prey.

ECONOMIST: Bank mergers

The documents also indicate that Winnick knew about fiber-optic capacity swap transactions that helped the company appear to be gaining revenue, deals that in fact had no economic value, investigators say.

FORBES: Magazine Article

To make a legal case against Winnick, prosecutors will have to show that he knew that the swap transactions lacked an economic basis and were used to paint a false picture of the company's financial situation.

FORBES: Memo To Telecom Exec: Sell Now