US govt to announce development in WorldCom CFO case

A significant development in the US government's criminal case against former WorldCom Inc chief financial officer Scott Sullivan is likely to be announced in the next few hours, according to sources close to the case.

The exact details of an expected announcement anytime after midday today remain unclear, but could involve an indictment of Sullivan on fraud and conspiracy charges related to his time as WorldCom's CFO, the source said.

Sullivan was arrested in New York on August 1 on federal charges of conspiracy and securities fraud related to his time as WorldCom's CFO.

The government has a Tuesday deadline to bring charges against Sullivan.

US media reports earlier today suggested that federal prosecutors plan to seek a grand jury indictment against Sullivan this week in connection with the $7.2bn (€7.34bn) accounting fraud at the company.

Talks between federal prosecutors and Sullivan have reportedly broken down in recent days, and the ex-CFO faces the prospect of being indicted before a plea deal can be reached.

The reports said Sullivan is resisting a plea offer from Manhattan prosecutors because it would entail him admitting to charges that, which under federal sentencing guidelines, would result in substantial prison sentence.