Former WorldCom CFO Scott Sullivan will sell his 10 bedroom South Florida Mansion and turn the proceeds over to investors who lost billions in the epic accounting fraud.
Investors are expected to recover at least $5 million from the sale of Sullivan's Florida home, plus about $200,000 from his WorldCom retirement account, New York state officials said. The agreement settles Sullivan's part in a lawsuit brought on by investors who lost billions of dollars when WorldCom collapsed three years ago in an $11 billion accounting fraud.
The settlement also orders Sullivan's wife to turn over some of her personal money into a trust fund that will go toward expenses for raising the couple's younger daughter.
Sullivan also faces sentencing August 11 for his role in the accounting fraud and is almost certain to receive prison time. He was the star witness against WorldCom's former CEO Bernard Ebbers, who was sentenced to 25 years in prison.
The two remaining defendants in the investor lawsuit, former WorldCom controller David Meyers and former accounting director Buford Yates, have so little money left they are unable to pay investors anything.
Myers and Yates also face sentencing in August, but are likely to get less prison time than Sullivan.
Investors have already recovered more than $6 billion in settlement money from the class action lawsuit, most of it from large investment banks that underwrote WorldCom securities.
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