Feeds

Ebbers failed to tell of book fiddling

Didn't stop fraud happening

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Former WorldCom boss Bernie Ebbers knew the telco's books were being cooked but failed to do anything about it, former CFO Scott Sullivan testified yesterday.

In his third day in the witness stand Sullivan recounted how Ebbers kept saying that the company had to hit the financial projections expected by Wall Street. In response, Sullivan told Ebbers that they were "going to have to do something drastic if we were going to stay with our [financial] guidance".

Whenhe showed Ebbers the "short cuts" made to doctor books, the then chief exec asked about the changes and what effect it would have, Sullivan said.

The prosecution lawyer asked Sullivan: "Did Mr Ebbers tell you not to make the short-cut adjustment you had proposed?"

"No, he did not," replied Sullivan.

Knowing that the books had been altered to cover-up massive rises in expenses, Ebbers told an analyst conference: "If we look out for the remainder of 2001, we do not see any storms on the horizon at this time," Reuters reports.

A tape of that conference call was played in court.

Ebbers denies fraud charges relating to the financial collapse of WorldCom in 2002. Sullivan has already pleaded guilty to his part in the $11bn (£5.8bn) accounting scandal. ®

Related stories

Ebbers 'drove Worldcom fraud' - Sullivan
Sullivan fingers Ebbers in WorldCom fraud whodunnit
WorldCom directors $54m lawsuit deal unravels
Ebbers fortune at risk as share prices slid
Former Worldcom directors cough up $18m
Ebbers never made 'an accounting decision' - witness
Ebbers feared fortune would be 'wiped out'
Ebbers knew of financial fiddling
Ebbers' financial know-how probed
Gloves off in Ebbers WorldCom fraud trial
Ebbers fraud trial kicks off
Ebbers faces WorldCom court showdown
Former Worldcom directors cough up $18m
MCI breaks free from Chapter 11
WorldCom gets sums wrong by $74bn
Bernie Ebbers faces criminal charges

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.