Does the fact that David Myers’s superior, Scott Sullivan, asked him to make the false accounting entries in WorldCom’s accounting records diminish Myers’ responsibility for his improper conduct?
I think Myers’ conduct towards in his professions should not be affected by anyone, even though making false accounting entries was Mr. Sullivan’s behest. Despite other factors, as a financial controller, integrity should plays as one of the most vital roles under any circumstance when making decisions. In this case, I think the real motivation that Myers agreed to improperly reclassify some huge expenses was that he believed the company’s problem would be straightened out eventually. Thus, he thought their manipulation on company’s income statement could help company to “meet” quarterly expectation. As a financial controller, Myers should certainly have the ability to forecast the company’s future operating trend. Because of the lack of judgment, Myers credulously agreed to go with Mr. Sullivan’s scheme.
Q2. What punishment, if any, do you believe David Myers should have been given for his role in the WorldCom fraud?
Mr. Myers was charged with securities fraud, conspiracy to commit securities fraud, and filing false statements. Based on these charges, I think Mr. Myers would be sentenced to 5-8 years prison terms. In addition, he would be imposed with a large amount of fine. Furthermore, the WorldCom would take a certain amount of bonus back for the period while he was being investigated. However, because his cooperation for testify against Mr. Ebbers, his sentenced prison terms might be reduced.
Is appropriate for federal law enforcement authorities “to make an example” of individuals involved in high-profile financial frauds, such as WorldCom and Enron?
Although it may seem very harsh to “make an example” of individuals who involved in high-profile financial frauds, but I think it is appropriate to do that. No matter what it costs,...
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