Aug 29, 2002 : WorldCom Execs Make Plea Deals: Report
📅 - Three WorldCom executives involved in the scandal at the now-bankrupt communications giant have reached preliminary agreements to plead guilty to felony charges and provide testimony against other participants in the accounting scheme, according to a report by the New York Times.
Word of the cooperation of the executives came as two of the company's other officials, former CFO Scott Sullivan and former director of general accounting Buford Yates Jr., were indicted on charges that they illegally conspired to hide billions of dollars in losses over more than a year.
Sullivan has reportedly held discussions with prosecutors about resolving his charges since his arrest last month, and his indictment was expected, but the indictment of Yates, who had not previously been arrested, came as a surprise.
Both Yates and Sullivan were charged with falsifying WorldCom's books and records, providing misleading information to auditors, illegally manipulating company information in connection with buying and selling securities and filing false reports with the Securities and Exchange Commission.
The details of the plea bargains of the other three executives, including former controller David Myers, have reportedly not been finalized, but are said to be far enough along that prosecutors filed notice that they would employ a method of charging defendants who have reached plea deals.
Along with Myers, the executives negotiating the deals include Betty L. Vinson and Troy M. Normand, who were employed in WorldCom's general accounting department.
Sullivan's lawyer reportedly said that his client would plead not guilty to the charges.
Word of the cooperation of the executives came as two of the company's other officials, former CFO Scott Sullivan and former director of general accounting Buford Yates Jr., were indicted on charges that they illegally conspired to hide billions of dollars in losses over more than a year.
Sullivan has reportedly held discussions with prosecutors about resolving his charges since his arrest last month, and his indictment was expected, but the indictment of Yates, who had not previously been arrested, came as a surprise.
Both Yates and Sullivan were charged with falsifying WorldCom's books and records, providing misleading information to auditors, illegally manipulating company information in connection with buying and selling securities and filing false reports with the Securities and Exchange Commission.
The details of the plea bargains of the other three executives, including former controller David Myers, have reportedly not been finalized, but are said to be far enough along that prosecutors filed notice that they would employ a method of charging defendants who have reached plea deals.
Along with Myers, the executives negotiating the deals include Betty L. Vinson and Troy M. Normand, who were employed in WorldCom's general accounting department.
Sullivan's lawyer reportedly said that his client would plead not guilty to the charges.
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