Justice Department Mulls over Possible WorldCom Indictments

Federal prosecutors plan to seek indictments against two former financial officers of bankrupt telecommunications giant WorldCom Inc. for their roles in the company’s accounting practices, The Wall Street Journal reported Thursday.

Former CEO Bernie Ebbers also is likely to face an indictment, the paper said, citing people familiar with the matter. Former controller David Myers and former CFO Scott Sullivan could face charges as early as next week of securities, mail and wire fraud, the paper said.

Sullivan was fired last month after WorldCom disclosed concealing $3.85 billion in expenses, an accounting method that allowed the company to hide losses and post an annual profit.

The Justice Department also is considering whether to indict WorldCom as a corporation, the paper reported.

WorldCom Inc. filed Sunday the largest bankruptcy petition in U.S. history. Listing $107 billion in assets in the voluminous bankruptcy filing, the No. 2 long-distance carrier operates in more than 200 countries on six continents and serves a customer base that includes Fortune 500 companies, the U.S. government and the world's largest communications companies such as rival AT&T Corp.

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