Sullivan, who resigned shortly after the $4bn (£2.5bn) WorldCom accounting fraud was exposed, was taken into custody along with former controller David Myers.
It is not yet known what the two have been charged with. According to reports Sullivan and Myers were led away in handcuffs, in exactly the same manner as Adelphia founder John Rigas was arrested.
The arrests follow investigations by federal authorities into the two executives alleged role in the $4bn (£2.5bn) accounting scandal WorldCom admitted to in June.
The company said it inflated profits by claiming operating expenses as capital spending.
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements
Charles Tilley's departure from CIMA leaves the accounting world quieter, but his institute with an exciting foundation