Former WorldCom CFO links Ebbers to accounting fraud at company

[JURIST] The government's main witness in the criminal case against former WorldCom CEO Bernard Ebbers testified Tuesday, directly linking Ebbers to the fraud and countering defense arguments that Ebbers did not understand the accounting schemes involved. Former CFO Scott Sullivan said Ebbers had a thorough understanding of the practices the corporation was engaging in and that he focused on financial market expectations of WorldCom [now MCI, Inc.]. Sullivan described Ebbers as a hands-on manager and said he had Ebbers' consent when he falsified company financial statements, ultimately leading to the $11 billion fraud scandal and the corporation's collapse. The defense has argued that Ebbers was unaware of the fraud and did not follow the company's accounting. Sullivan previously pleaded guilty in the case in return for consideration of his cooperation when he is sentenced. Read Ebbers indictment [text, PDF] and the superseding indictment [text, PDF]. The New York Times has more.

 

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