Bernie Ebbers |
Former WorldCom Inc. CEO Bernard Ebbers in early March was indicted in New York on federal charges of securities fraud, conspiracy to commit securities fraud and falsely filing with the Securities and Exchange Commission (SEC).
According to the Associated Press, ex-CFO Scott D. Sullivan, indicted the prior week, has agreed to testify against Ebbers to trim his own possible 25-year jail stint. Sullivan pleaded guilty to the same charges leveled at Ebbers.
WorldCom, now MCI Inc., is scheduled to exit bankruptcy this year. The SEC and the company itself, the nation’s No. 2 long-distance provider, have pegged the accounting discrepancy at $11 billion, including overstated profits.
