Feeds

Ebbers failed to tell of book fiddling

Didn't stop fraud happening

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
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
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.