-Caveat Lector- Thursday, 1 August, 2002, 15:06 GMT 16:06 UK WorldCom executives arrested
SEC officials allege David Myers committed fraud Two former top executives at scandal-ridden telecoms firm WorldCom have been arrested in New York. Former chief financial officer Scott Sullivan and former controller David Myers were taken into custody by Federal Bureau of Investigation (FBI) officials early on Thursday New York time. Mr Sullivan was led away in handcuffs by FBI agents "They are here, and they are in custody," said FBI spokesman Jim Margolin. The criminal charges were not disclosed. The Department of Justice (DoJ) has scheduled a press conference for later on Thursday about the arrests and charges. Both are expected to appear in Manhattan federal court later on Thursday, an FBI spokesman said. Mr Sullivan and Mr Myers surrendered to authorities at about 1100 GMT and were taken into custody at the Federal Building in Manhattan. Sacking Separately, Mr Sullivan and Mr Myers were charged on seven counts of fraud and for filing false statements with the Securities and Exchange Commission (SEC). Their arrests follow investigations by federal authorities into the actions of the executives in their role in the $4bn (£2.5bn) accounting scandal WorldCom disclosed to the world in June. The company said it had inflated profits by claiming operating expenses as capital spending - the equivalent of treating the purchase of paper clips as a major investment in expanding the business. The disclosure of dubious accounting resulted in the sacking of Mr Sullivan and the resignation of Mr Myers. Bu the scale of the alleged fraud perpetrated at WorldCom has suggested to some that other company officials must have been involved. Not yet repaid Attention has also focused on WorldCom co-founder and - until April - chief executive Bernie Ebbers, who has not been charged with any crime. Mr Ebbers borrowed $400m from the company just before it crashed, a loan that has not yet been repaid. George W Bush, the first US president to hold a master's degree in business administration, has since deplored the practice of executives borrowing from their own companies. Thursday's high-profile arrests follow those of executives at cable operator Adelphia last week and drug firm ImClone in June. All have occurred before news cameras. Some say the arrests have been staged in such as way as to show Americans the government is actively and aggressively pursuing corporate wrong-doers. <A HREF="http://www.ctrl.org/";>www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html";>Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/";>ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
