BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Wednesday, 4 September, 2002, 17:00 GMT 18:00 UK
WorldCom boss denies fraud
WorldCom's former chief financial officer has appeared in court and pleaded not guilty to orchestrating one of the biggest corporate accounting scandals in US history.

Scott Sullivan denied artificially inflating the telephone company's profits by masking billions of dollars of expenses.

Scott Sullivan
Mr Sullivan is accused of hiding WorldCom's debt
The charge said that the scheme allowed WorldCom to report earnings inflated by $5bn (3.2bn) over more than 18 months. In total, WorldCom has admitted to accounting errors valued at more than $7bn.

Mr Sullivan, who was arrested last month, was released on bail with a surety of $10m.

WorldCom's former director of general accounting, Buford Yates, also pleaded not guilty to his alleged role in the conspiracy.

He was released on bail with a surety of $500,000.

More charges

Both men were named in a series of charges last week, and were accused off securities fraud, conspiracy to commit securities fraud and fraud in connection with the purchase or sale of securities.

They were also charged with three counts of making false filings with the Securities and Exchange Commission.

The two men and others are alleged to have begun an illegal scheme in October 2000 aimed at hiding expenses so that WorldCom earnings could be inflated to meet Wall Street expectations.

Government prosecutors said the investigation into WorldCom was continuing and there were likely to be more charges and possibly more defendants.

Assistant US Attorney David Anders said he was trying to arrange a plea agreement with WorldCom's former controller David Myers.

Mr Myers was arrested last month with Mr Sullivan but has not yet been charged.

 WATCH/LISTEN
 ON THIS STORY
Kurt Eichenwald, New York Times
"As of now this case is going to trial"
WorldCom

Latest news

Analysis

Background

AUDIO VIDEO

TALKING POINT
See also:

04 Sep 02 | Business
30 Aug 02 | Business
29 Aug 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes