Washington (March 19, 2004) -- The Securities and Exchange Commission officially suspended former WorldCom chief financial officer Scott D. Sullivan from appearing or practicing before the commission as an accountant.
Sullivan consented to the suspension without admitting or denying the order's findings. The suspension was based on a judgment of permanent injunction entered on March 8 by the U.S. District Court for the Southern District of New York. The commission's civil complaint against Sullivan, filed on March 2, alleged, among other things, that Sullivan and other senior WorldCom executives knew that WorldCom's true operating performance and financial results were materially below the financial guidance they had given to Wall Street analysts and investors.
The SEC alleges that from September 2000 through June 2002, Sullivan engaged in a scheme to fraudulently conceal WorldCom's true operational and financial results that involved improperly manipulating the company's reported revenue, expenses, net income, earnings before interest, taxes, depreciation and amortization, and earnings per share.
Sullivan previously pleaded guilty to criminal charges filed by the U.S. Attorney's Office for the Southern District of New York.
-- WebCPA staff
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