A Collaboration with the University of Pittsburgh

Former WorldCom director sentenced to year and a day in prison

[JURIST] Former WorldCom [JURIST news archive] accounting director Buford Yates was sentenced to a year and a day in prison on Tuesday for his role in the company's billion-dollar business fraud. In 2002 Yates pleaded guilty [USA Today report] in Manhattan Federal Court to conspiracy and securities fraud charges for his part in a scheme to defraud investors by falsifying WorldCom's financial condition. Yates [litigation settlement information], who will begin serving his sentence on Oct. 10, was also fined $5,000 and given three years probation. The judge limited Yates' sentence because of the "substantial assistance" and "cooperation" he gave prosecutors in this case. WorldCom, which now operates as MCI Inc., went bankrupt in July 2002 due largely to its fraudulent [CBS report] activities. Reuters has more.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.