The Register®

Original URL: http://www.theregister.co.uk/2005/02/11/sullivan_worldcom_trial/

Sullivan tells of WorldCom fraud fears

Trial continues

By Tim Richardson

Posted in Management, 11th February 2005 11:49 GMT

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WorldCom called off merger talks with Verizon in 2001 amid fears that its accounting fraud would be uncovered, former CFO Scott Sullivan has testified.

Once again in the witness stand, Sullivan - who has already pleaded guilty to his part in the fraud - said both he and former chief exec Bernie Ebbers were worried the scandal would be unearthed if Verizon was allowed to check its books prior to a deal, reports AP.

Sullivan further testified that he warned Ebbers of the dangers of Verizon examining WorldCom's financial standing.

Ebbers - who is charged with orchestrating the $11bn (£5.8bn) book-fiddling that led to the financial collapse of WorldCom in 2002 - denies any involvement in the fraud. ®

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Ebbers failed to tell of book fiddling [1]
Ebbers 'drove Worldcom fraud' - Sullivan [2]
Sullivan fingers Ebbers in WorldCom fraud whodunnit [3]
WorldCom directors $54m lawsuit deal unravels [4]
Ebbers fortune at risk as share prices slid [5]
Former Worldcom directors cough up $18m [6]
Ebbers never made 'an accounting decision' - witness [7]
Ebbers feared fortune would be 'wiped out' [8]
Ebbers knew of financial fiddling [9]
Ebbers' financial know-how probed [10]
Gloves off in Ebbers WorldCom fraud trial [11]
Ebbers fraud trial kicks off [12]
Ebbers faces WorldCom court showdown [13]
Former Worldcom directors cough up $18m [14]
MCI breaks free from Chapter 11 [15]
WorldCom gets sums wrong by $74bn [16]
Bernie Ebbers faces criminal charges [17]