Court hears of WorldCom finance director's talks with FBI agents

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Times
From James Doran in New York



SCOTT SULLIVAN, former finance director of WorldCom, told FBI agents that he never discussed important aspects of the scheme that caused the collapse of the telecoms company with Bernie Ebbers, his former chief executive, a New York court heard yesterday.

Mr Ebbers, who is on trial for fraud connected with WorldCom’s record-breaking bankruptcy, was on the stand for the third day in his own defence.

Mr Sullivan, who has admitted orchestrating the fraud that brought about the $11 billion collapse in 2002, gave evidence against Mr Ebbers to government prosecutors in an effort to have his sentence reduced.

Mr Sullivan claims that his former boss forced him to falsify WorldCom’s books so that the ailing company would meet Wall Street profit forecasts. Once these forecasts were met it was hoped that WorldCom’s share price would stop falling, shoring up Mr Ebbers’s personal finances, which were tied to WorldCom.
http://www.timesonline.co.uk/newspaper/0,,173-1508501,00.html

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