Sullivan to Testify Against Ebbers
Now Sullivan will testify against his fomer boss, who is to stand trial for criminal fraud, conspiracy, and making false financial statements. And Sullivan is set to nail down Ebbers's legal coffin in a bid to cut back the severity of his own sentence (up to 25 years in prison and fines), having confessed to his role in the fraud. "As CFO at WorldCom I participated with other members of WorldCom to conspire to paint a false and misleading picture of WorldCom's financial results," Sullivan is reported to have told a Federal Court hearing.
In a press conference held Monday, U.S. Attorney General John Ashcroft gave hope to those former WorldCom investors who want to see Ebbers do time behind bars for his alleged financial sins. "Corporate executives who cheat investors by deceiving them about the nature of their businesses are not above the law and will be held responsible."
But while prominent individuals face the rap over the WorldCom scandal, there are those who believe that the modern incarnation of the carrier, MCI (Nasdaq: WCOEQ, MCWEQ), should not be allowed to trade without restrictions once it emerges from bankruptcy protection within the next few months (see Pressure Group Questions MCI Deals).
— Ray Le Maistre, International Editor, Boardwatch