Former WorldCom CFO indicted for deceit

By Our Corporate Bureau | 29 Aug 2002

New York: Scott Sullivan, WorldComs former chief financial officer, was indicted on fraud charges on 28 August 2002 in connection with the $7.68-billion accounting scandal.

The grand jury indictment of Sullivan replaced a criminal complaint filed against him by federal prosecutors on 1 August 2002 and paves way for a trial in the Manhattan federal court.

The grand jury also indicted WorldComs former director of general accounting, Buford Yates, for his role in the alleged scheme aimed at artificially inflating WorldComs earnings by hiding expenses.

WorldCom had filed the worlds largest bankruptcy in July 2002, reeling under a $40-billion in debt and the huge accounting fraud. It has also been sued by the US Securities and Exchange Commission.