Oklahoma Attorney General Drew Edmondson dismissed state charges Tuesday against five former WorldCom Inc. executives in light of their sentencing earlier this month in federal court, said Charlie Price, a spokesman for Mr. Edmondson. The attorney general believes the sentences handed down were satisfactory, Mr. Price said.
The charges, filed in August 2003, alleged that the former executives - CFO Scott D. Sullivan, Controller David F. Myers, Director of General Accounting Buford T. Yates Jr., Director of Management Accounting Betty L. Vinson and Director of Legal Accounting Troy M. Normand - intentionally falsified information filed with the SEC to inflate the value of the company's securities. Mr. Sullivan was sentenced to five years in federal prison, along with monetary and property forfeitures, and the others received prison time or probation.
Oklahoma state pension funds, with total assets of $16.45 billion, lost a total of $64 million as a result of the WorldCom accounting scandal. Mr. Price said the state has not recouped any of that money but is "still in line in the bankruptcy case." Mr. Edmondson had delayed Oklahoma's case against the executives at the request of U.S. Attorney David Kelley, who was prosecuting the federal actions.