Ex-WorldCom CFO Pleads Guilty to Conspiracy; Sentencing Delayed

The former chief financial officer of WorldCom, Scott Sullivan, has pleaded guilty to one count of conspiracy to commit securities fraud.

Sullivan entered his plea Monday in Hinds County, Miss., before Circuit Judge Bobby DeLaughter. Sentencing was delayed, the Associated Press reported. Sullivan faces up to five years in prison and a fine of $5,000, the state attorney general's office said.

Sullivan is accused of taking part in falsely recording billions of dollars in operating costs as capital expenses, which made the company look as if it were making money when it was actually losing money.

Mississippi Attorney General Jim Hood said Sullivan had waived indictment on the charge.

While Sullivan awaits sentencing, his former boss, WorldCom founder and former CEO Bernard Ebbers, faces a November trial on charges of securities fraud, conspiracy and falsifying regulatory filings.

WorldCom Inc. collapsed in 2002, but emerged from the largest bankruptcy in U.S. history in April. The name was changed to MCI, the long distance phone business it acquired in 1998.

Several former executives have already pleaded guilty to conspiracy and securities fraud in connection with the massive accounting scheme that led to the company’s demise.

Investigating WorldCom is the U.S. attorney's office for the Southern District of New York and the attorney general’s office in Mississippi. WorldCom was headquartered in Clinton, Miss. until last year.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.