WorldCom CFO rounds on Ebbers
Former WorldCom CFO Scott Sullivan has testified that he was pressurised by the company's then CEO Bernie Ebbers to meet Wall Street expectations even though the company's finances were collapsing.
The Guardian reports that Sullivan, in his second day of testimony in a Manhattan Court, said he had received the ‘green light’ from Ebbers to make improper accounting entries to boost revenues and obscure costs.
According to the report, Sullivan alleged that in the third quarter of 2000 he had told Ebbers that the only way to meet market expectations would be to manipulate financial statements. Sullivan claimed that Ebbers had said the company had to hit the targets, which Sullivan saw as the green right go ahead.
In his testimony Sullivan claimed that WorldCom had kept two sets of books – one reflecting the company’s actual financial position and the other for Wall Street.