Friday, February 11, 2005

"The most impeachable witness ever to hit a witness stand."

Scott Sullivan, former CFO of WorldCom, continued his testimony tying Bernie Ebbers to the accounting fraud at the company.  Sullivan recounted how WorldCom entered negotiations with Verizon Communications Inc. in 2001 about a possible merger, but Ebbers ended the talks because due diligence by Verizon likely would have revealed the fraud.  Sullivan said that Ebbers used WorldCom's low stock price as the reason for calling off further negotiations.  While Sullivan asserts that Ebbers knew about the accounting fraud at the company, the lack of documentation for that claim remains an issue in the government's case.  The cross-examination of Sullivan by Reid Weingarten, Ebbers' lead counsel, will likely begin next week, and  the effort to fulfill Weingarten's prophecy about the impeachability of Sullivan will be tested. An AP story (here) discusses Sullivan's continuing testimony. (ph)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/02/the_most_impeac.html

Fraud, Prosecutions, WorldCom | Permalink

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