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Sarbanes-Oxley News & Developments
SEC Files Proposed Settlement for Civil Penalty In WorldCom CaseThe proposed settlement provides for a judgement requiring WorldCom to pay a civil penalty of $1,510,000,000.
> > The SEC has alledged that WorldCom misled investors by overstating its income from at least as early as 1999 thru the first quarter of 2002. The Commission filed its case against WorldCom on June 26,2002. The proposed settlement, which is subject to approval of The District Court hearing the Commissions action against WorldCom and the Bankruptcy Court handling WorldComs bankruptcy case, the judgement requires WorldCom to pay a civil penalty of $1,500,000,000. Under the terms of the proposed settlement, the funds paid by WorldCom in satisfaction of the SEC judgement will be distributed to victims of the companys fraud, pursuant to Section 308 of the Sarbanes-Oxley Act of 2002.
In addition,the SEC has brought civil actions against four former employees of WorldCom. Former Controller, David F. Meyers, former Director of General Accounting Buford Yates, Jr., former accountants in the General Accounting Department, Betty L. Vinson and Troy M. Normand. All four defendents consented to court orders enjoining them from future violations of the federal securities laws. The civil actions against the four individuals are still pending as to monetary relief.
The SEC investigation into the fraud at WorldCom is continuing.
Source: U.S. Securities and Exchange Commission Litigation Release #18147
Published:2003-05-22
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