New Charges Filed

By: Associated Press
By: Associated Press

The federal government filed new bank fraud charges Wednesday against former WorldCom chief financial officer Scott Sullivan.

Sullivan is now accused of lying on financial statements to secure $4.5 billion in credit for the company.

Sullivan was already charged with ordering WorldCom accountants to move operating expenses off the books, making the company appear profitable when it was losing money.

He has pleaded innocent to the charges.

Sullivan was CFO at then Mississippi-based WorldCom when investigators say the company carried out a $9 billion accounting fraud -- the largest in U.S. history.

A new indictment unsealed in federal court in Manhattan adds charges of bank fraud and making false statements to the counts Sullivan already faced.

The new charges add 120 years to his potential sentence, prosecutors said, although the sentence would likely be much less under federal sentencing guidelines if Sullivan were convicted.

The new charges accuse Sullivan of using false financial statements to obtain loans in 2001 from Bank of America, Chase Manhattan Bank, Citibank and other lending institutions.


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