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Worldcom official pleads guilty to securities fraud

WorldCom's former controller pleaded guilty to securities fraud Thursday, saying he was told by "senior management" to falsify records in what became the largest corporate accounting scandal in US history.

David Myers, 44, entered the plea in US District Court after telling Judge Richard Casey he wanted to waive his right to be indicted on the charges. It was the first admission of guilt in the multibillion-dollar scandal.

Prosecutors say Myers and Scott Sullivan, the former chief financial officer at WorldCom, directed employees to falsify balance sheets to hide more than US$3.8 billion in expenses. The deception enabled WorldCom to report a profit when it was actually losing money, according to regulators.

"I combined with others ... to assist in the commission of fraud," Myers told the judge.

Casey asked the defendant if he had committed the three crimes spelled out in court papers: conspiracy, securities fraud, and making false filings to the Securities and Exchange Commission.

"Yes, sir, I did," Myers answered.

Outside the court, attorney Richard Janis said his client was a reluctant participant who had "expressed his discomfort and displeasure with the actions being undertaken by WorldCom."

Myers faces up to 10 years on the most serious charge. He is cooperating with the authorities against his former bosses, Janis said.
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