Disgraced WorldCom executives face federal charges

Two former WorldCom executives are to face federal charges of financial wrongdoing.

Former chief financial officer Scott Sullivan and former controller David Myers are being held by the FBI in New York pending a court appearance.

"They are here and they are in custody," said FBI spokesman Jim Margolin.

The charges were not immediately disclosed. A complaint was to be unsealed in federal court later today.

The charges followed reports that authorities had targeted the former executives while investigating allegations of billions of dollars in accounting frauds at the company.

Sullivan and Myers were dismissed in June after the company admitted it inflated revenues by nearly £2.5bn (€3.9bn).

The Justice Department has also considered taking the more drastic step of charging WorldCom as a corporation. A conviction of the long-distance phone company could drive it out of business.

In June, the Securities and Exchange Commission, citing "accounting improprieties of unprecedented magnitude," filed civil fraud charges against WorldCom.