Arrests Won't Impact Mississippi Probe Of WorldCom - WLOX.com - The News for South Mississippi

Arrests Won't Impact Mississippi Probe Of WorldCom

Secretary of State Eric Clark says the federal arrests of two former WorldCom executives will have no bearing on an ongoing state probe.

"We, of course, are working with federal officials,'' Clark said Thursday. "However, our office, the attorney general, the auditor's office and the treasurer's office are all working to determine whether state law was violated'' by former officials of the Clinton-based company.

Former chief financial officer Scott Sullivan, 40, and former controller David Myers, 44, surrendered Thursday to the FBI in New York on charges of falsifying books by $3.8 billion at the now-bankrupt long-distance and Internet services company. Their arrests are the latest blow to the company and corporate America, which has seen investors bail out of the stock market because of one accounting scandal after another.

Clark said state officials had been told in advance the arrests were being planned. Attorney General Mike Moore skipped a speaking engagement Thursday at the Neshoba County Fair to meet with federal authorities in New York investigating the WorldCom scandal.

"The issue of whether my office will bring civil action or the attorney general will bring criminal action will have to be determined based on state laws,'' Clark said. "We're still investigating.''

Clark has subpoenaed records of WorldCom's auditors to determine if any state securities laws have been broken. He said subpoenas were issued to Arthur Andersen LLP and KPMG LLP. Thursday's federal charges put pressure on Sullivan and Myers to tell investigators what they know about their former boss, former chief executive Bernard Ebbers, who also is being investigated by prosecutors.

A statement from Ebbers' attorneys Thursday said the former CEO "always believed Sullivan and Myers to be competent, ethical and loyal employees, devoted to the welfare of WorldCom.''

The statement added, "Today's actions may be good theater for the media and useful to politicians, but they don't prove that Sullivan and Myers ever acted with criminal intent, an essential element we doubt the government will ever be able to prove in this case.''

  • NEWSMore>>

  • Gulfport's Matt Luke fulfills a dream to become Ole Miss Head Football Coach

    Gulfport's Matt Luke fulfills a dream to become Ole Miss Head Football Coach

    Tuesday, July 25 2017 12:10 AM EDT2017-07-25 04:10:04 GMT

    The Luke family has been committed to Ole Miss for years.  On Monday Matt Luke met the media in Oxford four days after taking over the head coaching reins from Hugh Freeze.

    More >>

    The Luke family has been committed to Ole Miss for years.  On Monday Matt Luke met the media in Oxford four days after taking over the head coaching reins from Hugh Freeze.

    More >>
  • Matt Luke introduced as Ole Miss interim head coach

    Matt Luke introduced as Ole Miss interim head coach

    Monday, July 24 2017 11:58 PM EDT2017-07-25 03:58:50 GMT
    WLBTWLBT

    14 years as part of the Ole Miss football program as a coach or player has prepared Matt Luke for this opportunity. Admittedly it doesn't come under the circumstances he might've envisioned. But with a Rebel bloodline that runs 3 generations deep, the position fulfills a lifelong dream. "I can truly tell y'all today that this is my dream job," Luke said Monday at his first press conference as Ole Miss interim head coach. "It's a job that I've been preparing my whole li...

    More >>

    14 years as part of the Ole Miss football program as a coach or player has prepared Matt Luke for this opportunity. Admittedly it doesn't come under the circumstances he might've envisioned. But with a Rebel bloodline that runs 3 generations deep, the position fulfills a lifelong dream. "I can truly tell y'all today that this is my dream job," Luke said Monday at his first press conference as Ole Miss interim head coach. "It's a job that I've been preparing my whole li...

    More >>
  • Rain puts Pascagoula's new football turf on the clock

    Rain puts Pascagoula's new football turf on the clock

    Monday, July 24 2017 11:09 PM EDT2017-07-25 03:09:56 GMT
    Rain has slowed down construction crews as they attempt to put a new field turf at War Memorial Stadium (Photo Source: WLOX News Now)Rain has slowed down construction crews as they attempt to put a new field turf at War Memorial Stadium (Photo Source: WLOX News Now)

    The Pascagoula Panthers open the 2017 football season on the road. In fact, their first three games are road contests. That scheduling quirk may give field turf crews just enough time to get War Memorial Stadium ready for the September 8 home opener. The wet weather in South Mississippi is placing quite the burden on construction workers as they attempt to complete stadium renovations. The project was suppose to be finished before the beginning of Pascagoula's football season.

    More >>

    The Pascagoula Panthers open the 2017 football season on the road. In fact, their first three games are road contests. That scheduling quirk may give field turf crews just enough time to get War Memorial Stadium ready for the September 8 home opener. The wet weather in South Mississippi is placing quite the burden on construction workers as they attempt to complete stadium renovations. The project was suppose to be finished before the beginning of Pascagoula's football season.

    More >>
Powered by Frankly