Two Former WorldCom Executives Arrested for Fraud

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Last updated at: (Beijing Time) Friday, August 02, 2002

Two Former WorldCom Executives Arrested for Fraud

Two former executives of the US telecom giant WorldCom surrendered Thursday to face fraud and conspiracy charges accusing them of hiding 3.8 billion dollars in company expenses from investors.

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Two former executives of the US telecom giant WorldCom surrendered Thursday to face fraud and conspiracy charges accusing them of hiding 3.8 billion dollars in company expenses from investors.

Former WorldCom chief financial officer Scott Sullivan and former controller David Myers surrendered to the FBI at an undisclosed location in New York City.

A seven-count complaint, unsealed in federal court Thursday, charges them with securities fraud, conspiracy and false statements to the US Securities and Exchange Commission (SEC).

The securities fraud and false statement charges carry a maximum prison sentence of 10 years. If convicted of conspiracy, they face up to five years in prison.

The SEC filed civil fraud charges against WorldCom, citing "accounting improprieties of unprecedented magnitude."

The Justice Department has also considered taking the more drastic step of filing criminal charges against WorldCom as a corporation. A conviction of the long-distance phone company coulddrive it out of business.

The WorldCom, one of the largest telecommunication giant in theUS, filed for bankruptcy protection two weeks ago.

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