STOCKHOLM, July 6, 2008 (AFP) - Five officials in Sweden from mobile phone operator Ericsson are suspected of defrauding several billion kronor (millions of euros), Swedish agency TT reported on Sunday.

The five suspects allegedly created false bills between 1998 and 1999 in order to escape fiscal controls.

If the appeals court judge, who is set to announce a verdict Thursday, pays heed to the prosecutor's accusations, the five could serve time in jail, TT reported.

Ericsson which was not available for comment on Sunday is said to have acknowleged as part of the investigation that errors in its billing system were possible.

However, the world's largest mobile phone network operator said it had respected international commercial legislation, TT reported.