Former WorldCom Executives Charged In Accounting Scheme - WLOX.com - The News for South Mississippi

Former WorldCom Executives Charged In Accounting Scheme

Two former WorldCom executives facing charges of securities fraud and conspiracy in the company's accounting scandal are free on bond.

Former WorldCom chief financial officer Scott Sullivan and former controller David Myers surrendered to the FBI today in New York. U.S. Magistrate James Francis released Sullivan on $10 million bond and Myers on $2 million bond at a brief hearing in federal court in Manhattan. The defendants and their lawyers were not immediately available for comment.

A criminal complaint alleges that Sullivan directed Myers to conceal about nearly $4 billion in expenses by dispersing the debts throughout the company's capital accounts. The complaint alleges the defendants never disclosed the questionable accounting practices to external auditors, including Arthur Andersen.

Sullivan and Myers were dismissed from WorldCom in June. The charges put pressure on the pair to tell investigators what they know about their former boss, former chief executive Bernard Ebbers, who also is being investigated by prosecutors.

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