As if misreporting billions in expenses and filing for bankruptcy wasn't enough, two former WorldCom Inc. executives have surrendered to federal authorities to face charges related to financial wrongdoing.
Scott Sullivan and David Myers surrendered at an undisclosed location early this morning. Details of the charges against Sullivan and Myers have not yet been disclosed. The complaint was expected to be unsealed in federal court in Manhattan later today. Until recently, Sullivan served as WorldCom's chief financial officer and Myers held the post of controller.
Last week, John Rigas, two of his sons and two other Adelphia Communications Corp. executives were arrested on charges of conspiring to commit securities fraud. At the time of their arrest, rumors began to circulate that former WorldCom executives would be the next group to face the criminal justice system.
WorldCom recently filed for Chapter 11 bankruptcy protection. In its filing, WorldCom listed $107 billion in assets and $41 billion in debt. The Enron filing, which was the largest in U.S. history for a short spell, pales in comparison, coming in at almost half of WorldCom's filing. The bankruptcy was fueled by an admission by the company that it misreported nearly $4 billion in expenses.
Reports have circulated that the Department of Justice may bring charges against WorldCom as a company, but WorldCom officials have denied any knowledge of a DOJ probe. The company has said it is cooperating fully with federal authorities.
WorldCom's stock was officially delisted from the Nasdaq on July 30.