WorldCom ex-execs arrested

Two former executives of troubled telco WorldCom have been arrested in New York. Both face criminal charges of conspiracy to commit securities fraud.

Ex-chief financial officer Scott Sullivan and former controller David Myers surrendered to FBI agents at an undisclosed location today (Thursday) and later on appeared at a Manhattan federal court, according to an FBI spokesman.

They have been also charged with a further count of securities fraud and five counts of filing false statements with the Securities and Exchange Commission (SEC), according to a criminal complaint unsealed today.

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

Sullivan was fired and Myers left WorldCom in June following an admission from the company that it had falsely accounted for $3.8bn (£2.45bn) operating expenses as profits.

The SEC later filed civil fraud charges against the telco, citing "accounting improprieties of unprecedented magnitude".

The troubled telco has also announced that it will be delisting from the Nasdaq, following a decision from the Nasdaq Listing Qualifications Panel to eject the company from its stock market.