Risk Management

Sullivan Pleads Guilty to Conspiracy

The allegation stemmed from the ex-CFO's role in WorldCom's misrepresentation of operating costs.
Stephen TaubJune 9, 2004

Former WorldCom CFO Scott Sullivan pleaded guilty to a Mississippi state charge stemming from his role in the telecom company’s accounting scandal.

The ex-finance chief pleaded guilty to one count of conspiracy to commit securities fraud, according to the Associated Press. Although sentencing was delayed, Sullivan faces up to five years in prison and a fine of $5,000, the wire service reported.

Attorney General Jim Hood reportedly said that the charge against Sullivan resulted from his participation in the company’s misrepresentation of billions of dollars of operating expenses, a misrepresentation that enabled WorldCom to make false report earnings.

Three months ago, Sullivan pleaded guilty to three federal criminal counts for his role in the company’s accounting fraud.

The Mississippi attorney general’s office is working with the U.S. Attorney’s Office for the Southern District of New York in investigating WorldCom financial dealings, the AP says.