Criminal charges were filed yesterday against Mr Bernie Ebbers, WorldCom's former chief executive, after Mr Scott Sullivan, his former chief financial officer, agreed to plead guilty to similar charges and co-operate with investigators probing the collapse of the US telecommunications giant.
Mr Ebbers, who resigned from WorldCom shortly before the company filed for bankruptcy protection from its creditors amid a huge accounting scandal in July 2002, will be arraigned in court in New York today.
Mr Sullivan pleaded guilty to three counts of securities fraud, fraud and misleading federal investigators. He also agreed to co-operate with the investigation into WorldCom's collapse. He faces up to 25 years in prison, although prosecutors could recommend leniency depending on his co-operation.
The deal with Mr Sullivan was announced by Mr John Ashcroft, US attorney-general, and is seen as critical to the justice department's case against Mr Ebbers. - (Financial Times Service)