Former WorldCom officials face fraud charges

Two of WorldCom's top financial managers are expected to be charged by federal prosecutors for their roles in the company's...

Two of WorldCom's top financial managers are expected to be charged by federal prosecutors for their roles in the company's accounting fraud.

Scott Sullivan, the former chief financial officer, and David Myers, the former controller, were expected to be charged with securities, wire and mail fraud today.

Sullivan could face a jail sentence of up to 15 years.

Prosecutors had set a deadline of Wednesday for a negotiated resolution, but a plea deal had not been reached.

A negotiated plea would save the company money and could turn Sullivan into an important witness against other executives, the report said.

WorldCom announced on 25 June that it was firing Sullivan and admitted that it had disguised expenses of $3.8bn in its financial results during 2001 and 2002, allowing the company to appear profitable when it was not.

Internal documents show that Sullivan and Myers were told two years ago that their accounting methods were questionable.

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