Jury indicts WorldCom CFO

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Jury indicts WorldCom CFO

Scott Sullivan, the former chief financial officer of WorldCom, was indicted by a federal grand jury on charges of securities fraud, conspiracy to commit securities fraud and making false filings with the US Securities and Exchange Commission (SEC).

Buford Yates, WorldCom's former director of general accounting, was indicted on the same charges.

The charges were detailed in a complaint filed at the end of July by the US Department of Justice against Sullivan and former WorldCom controller David Myers.

Sullivan and Myers were both fired by WorldCom in June, and charges were brought to them. They were released on bail.

Myers was named in the indictment as a co-conspirator but not indicted and is negotiating with prosecutors. Also named as co-conspirators but not indicted were accounting employees Betty Vinson and Troy Normand.

The indictment alleges that Sullivan, Yates and their co-conspirators schemed to inflate WorldCom's reported earnings artificially and knowingly violated Generally Accepted Accounting Principles.

Five counts of the indictment's seven counts concern WorldCom's quarterly SEC filings for all of 2001 and the first quarter of 2002.

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