Former WorldCom director of accounting Buford Yates has been sentenced to
a year and a day in prison for his part in the massive fraud that led to the
telecom’s bankruptcy in 2002.
Yates, 48, pleaded guilty in Manhattan Federal Court in 2003 to
conspiracy and securities fraud charges for his role in a falsifying the
financial statements to make a floundering WorldCom appear profitable.
He was ordered to surrender to a federal correctional facility on Oct.
On Thursday, the government’s star witness in the $11 billion fraud case
against former WorldCom boss Bernie Ebbers, will also face a judge for
Former finance boss Scott Sullivan, 42, is looking at 25 years in prison
on similar charges for his role in cooking company books.
During the Ebbers trial, which resulted in a guilty verdict and an 25-year stretch for Ebbers, Sullivan spent five days on the stand detailing how
the books were altered and that the orders had come from Ebbers.
Sullivan told the jury that former CEO repeatedly pressured him to “hit
our numbers” when the telecom giant was struggling to generate revenues.
Sullivan said Ebbers pushed him every
quarter from 2000 to 2002 to hit the marks set by Wall Street
analysts — regardless of the company’s performance. He also testified that
he helped create two sets of accounting books.
In order to control losses from stagnating revenues and rising operation
costs, Sullivan said Ebbers pressured
the accounting department to inflate revenues while hiding expenses.
Sullivan also told the jury that company executives, including Yates,
“made adjustments [in accounting] that had nothing to do with business.”
Former controller David Myers, 47, is also scheduled to face sentencing
today. He pleading guilty in 2002 to conspiracy, securities fraud charges.