Sullivan Back in Worldcom Plea Bargain Talks
Scott Sullivan, the former finance chief of WorldCom, is said to be considering a guilty plea in the fraud investigation. Mr Sullivan, who maintains he did nothing improper, could offer a crucial testimony as the US justice department tries to bring charges against other senior WorldCom...
Scott Sullivan, the former finance chief of WorldCom, is said to be considering a guilty plea in the fraud investigation.
Mr Sullivan, who maintains he did nothing improper, could offer a crucial testimony as the US justice department tries to bring charges against other senior WorldCom executives.
Federal investigators are still looking into how much was known by the flamboyant former WorldCom chief executive Bernard Ebbers but have not brought any charges against him. Mr Ebbers has argued he had no knowledge of the alleged scheme to inflate profits which has so far forced WorldCom to restate $9bn in earnings from the past three years.
According to a report in the Wall Street Journal, Mr Sullivan, who was charged in August, has reopened talks with federal prosecutors that could lead to a plea bargain.
Mr Sullivan is said to be considering cooperating with the investigation in the hopes of getting a more lenient sentence. The former finance chief has been charged on seven counts and could face a maximum of 65 years in prison.
But Mr Sullivan has been put under pressure by the guilty pleas of four other former WorldCom workers including David Myers, the controller who reported directly to him. They said they were ordered to manipulate WorldCom's books in order to make the company's finances appear more robust.
Mr Ebbers was forced out of WorldCom still owing the company $415m in loans he received from the telecoms company. The board of the bankrupt business has seized a number of his assets for creditors including a $14m yacht, 400 acres of Alabama forest and a cattle ranch in British Columbia, said to be worth $85m.
WorldCom yesterday resorted to full-page advertising in the financial press to try to convince customers and investors that it remains a viable business.
The campaign seeks to draw attention to the restructuring of WorldCom and points out that the company has $1.4bn in cash, over $1bn in financing available and a new auditor in KPMG.
"Our finances are healthier than anyone expected them to be at this stage," it said.
The company is in the process of appointing a new chief executive and is expected to name former Compaq chief, Michael Capellas.
Mr Sullivan, who maintains he did nothing improper, could offer a crucial testimony as the US justice department tries to bring charges against other senior WorldCom executives.
Federal investigators are still looking into how much was known by the flamboyant former WorldCom chief executive Bernard Ebbers but have not brought any charges against him. Mr Ebbers has argued he had no knowledge of the alleged scheme to inflate profits which has so far forced WorldCom to restate $9bn in earnings from the past three years.
According to a report in the Wall Street Journal, Mr Sullivan, who was charged in August, has reopened talks with federal prosecutors that could lead to a plea bargain.
Mr Sullivan is said to be considering cooperating with the investigation in the hopes of getting a more lenient sentence. The former finance chief has been charged on seven counts and could face a maximum of 65 years in prison.
But Mr Sullivan has been put under pressure by the guilty pleas of four other former WorldCom workers including David Myers, the controller who reported directly to him. They said they were ordered to manipulate WorldCom's books in order to make the company's finances appear more robust.
Mr Ebbers was forced out of WorldCom still owing the company $415m in loans he received from the telecoms company. The board of the bankrupt business has seized a number of his assets for creditors including a $14m yacht, 400 acres of Alabama forest and a cattle ranch in British Columbia, said to be worth $85m.
WorldCom yesterday resorted to full-page advertising in the financial press to try to convince customers and investors that it remains a viable business.
The campaign seeks to draw attention to the restructuring of WorldCom and points out that the company has $1.4bn in cash, over $1bn in financing available and a new auditor in KPMG.
"Our finances are healthier than anyone expected them to be at this stage," it said.
The company is in the process of appointing a new chief executive and is expected to name former Compaq chief, Michael Capellas.
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