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Cfo indicted { August 28 2002 } Original Source Link: (May no longer be active)    http://www.washingtonpost.com/wp-dyn/articles/A6734-2002Aug28.html http://www.washingtonpost.com/wp-dyn/articles/A6734-2002Aug28.html Ex-WorldCom CFO Scott Sullivan Indicted By Devlin Barrett Associated Press Writer Wednesday, August 28, 2002; 1:18 PM NEW YORK -- The former chief financial officer for telecommunications giant WorldCom Inc. was indicted Wednesday on securities fraud and other charges after an apparent breakdown in plea negotiations. The defendant, Scott Sullivan, 40, is accused of overseeing a scheme to conceal $3.8 billion in company expenses. The indictment, unsealed in federal court in New York's borough of Manhattan, also names as a defendant Buford Yates Jr., WorldCom's former director of general accounting. The indictment also names two other accounting executives, Betty Vinson and Troy Normand, as unindicted co-conspirators. Sullivan allegedly instructed the executives to hide Worldcom's increasing expenses by improperly shifting costs from operating to capital accounts. That made its earnings look better than they were. David Myers, 44, the telecommunications giant's former controller, was not indicted Wednesday. He was charged along with Sullivan in an earlier criminal complaint, but has been negotiating with prosecutors. Prosecutors filed papers indicating Myers, Vinson, and Normand were all cooperating with investigators. T he papers say the three defendants have waived their right to be indicted by a grand jury and will respond to a document known as an information -- a procedure used for guilty pleas by cooperating suspects. Calls to defense attorneys were not immediately returned. Sullivan's attorney, Irv Nathan, has said his client was a victim of "a rush to judgment." The indictment came amid reports that prosecutors were seeking plea deals with Sullivan and others in hopes of building a case against former chief executive Bernard Ebbers. Ebbers' lawyers have said he had no knowledge of the accounting decisions in question. WorldCom, which owns MCI, the nation's second-largest long-distance company, filed for Chapter 11 bankruptcy protection on July 21 after disclosing the accounting abuses. It was the biggest such filing in U.S. history. Since then, the company has disclosed an additional $3.3 billion in inflated profits. Sullivan, who is free on $10 million bail, could get up to 65 years in prison if convicted on charges of securities fraud, conspiracy and filing false statements with the SEC. But federal guidelines call for a sentence of 10 years or less. © 2002 The Associated Press

Acquisitions { August 8 2002 } Cfo indicted { August 28 2002 } Ebbers exchief of worldcom is indicted on federal charges { March 2 2004 } Mci att dispute over calling fraud Misteps since 99 { July 2 2002 } Moving hq name mci { April 15 2003 } Outside directors pay 54 million to settling class action Probe expands { July 1 2002 } Wordcom chapter Worldcom bankruptcy Worldcom bbc { June 27 2002 } Worldcom chief given 25 years for huge fraud { July 14 2005 } Worldcom enabled huge fraud { June 10 2003 } Worldcom msnbc Worldcom ny { June 26 2002 } Worldcom pay 500m fine { May 19 2003 } Worldcom [jpg] Files Listed: 17

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