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Non-Tech : The Enron Scandal - Unmoderated -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (2939)	3/2/2004 12:45:01 PM
From: Glenn Petersen	Respond to of 3602

Ex-WorldCom CFO Pleads Guilty to Fraud story.news.yahoo.com NEW YORK (Reuters) - Scott Sullivan, former chief financial officer of WorldCom Inc., on Tuesday pleaded guilty to three criminal charges relating to an $11 billion accounting scandal that pushed the telephone company into the largest U.S. corporate bankruptcy. The guilty plea covers charges of conspiracy, fraud and making false statements about WorldCom's financial health to regulators. Sullivan, 42, declined to comment before heading into the courthouse to enter his plea. Sullivan, who was fired from the company, now known as MCI, in June 2002, also is expected to cooperate in the investigation of WorldCom's former chief executive, Bernie Ebbers, people familiar with the situation said. The U.S. Justice Department (news - web sites) on Tuesday plans to announce criminal charges against Ebbers, who built the company from a discount long-distance reseller in Mississippi into the No. 2 U.S. long-distance company through more than 60 acquisitions before he left in 2002. Sullivan previously had pleaded not guilty to the charges that he orchestrated the accounting fraud that improperly recorded capital expenses and masked net losses. He had been scheduled to go to trial in April. The company filed for bankruptcy protection in July 2002, but it hopes to emerge this spring after shedding all but a fraction of the $41 billion in corporate debt, overhauling its management team and board of directors, and revamping operations. Sullivan's cooperation on the Ebbers investigation marks a coup for prosecutors trying to link the brash executive, who has said denied any knowledge of the financial "gimmickry" that an independent examiner said inflated the company's revenues.