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U.S. Ready To Charge WorldCom Ex-Officers
Friday, July 26, 2002
By Christopher Stern & Kathleen Day
Washington Post Staff Writers

WorldCom spokesman Brad Burns declined to comment on the possibility of charges being filed against the former executives. Lawyers for the three executives did not return calls yesterday. Justice Department officials also declined to comment on the possibility that charges could be filed as early as next week.

The Justice Department is poised to file criminal charges against former WorldCom Inc. executives on allegations that they improperly accounted for $3.9 billion in an effort to improve the appearance of the telecommunications giant's financial performance, according to a source familiar with prosecutors' plans.

Charges will be filed against former chief financial officer Scott D. Sullivan, former controller David Myers and possibly former chief executive Bernard J. Ebbers, according to the source. The Justice Department's plans to prosecute the executives was first reported yesterday by the Wall Street Journal.

WorldCom, which has already been charged with fraud in a civil action brought by the Securities and Exchange Commission, has laid the blame for the improper accounting squarely on Sullivan and Myers in public statements. While Sullivan and Myers have been directly implicated, WorldCom has said there is no proof that Ebbers was directly involved.

The planned charges against the executives, which could come as early as next week, follow the arrest and indictment of five Adelphia Communications Corp. executives on Wednesday. Sources say prosecutors are being urged to make arrests by the Bush administration to show its willingness to hold executives accountable for the current wave of corporate scandals.
(More: Washington Post TechNews.com News Source)
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A little more accounting fun.

Dan