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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
EXCHANGE ACT SECURITIES WORLDCOM ACCOUNTING VIOLATIONS OFFICER MYERS YATES CIVIL ACTION JUDGMENTS SOUTHERN DISTRICT COURT COMPLAINT FRAUD MONETARY RELIEF DEFENDANT ACTING PUBLIC COMPANY INJUNCTION JUDGE RAKOFF CHARGES PURSUANT REPORTS LITIGATION PERMANENT INJUNCTION ENJOINS PENDING YORK PRACTICING |
Securities and Exchange Commission
Litigation Release No. 17842 / November 15, 2002
Accounting and Auditing Enforcement
Release No. 1665 / November 15, 2002
Myers and Yates, Two Former WorldCom Executives, Are Permanently Enjoined
from Committing Securities Fraud and Other Violations, and Barred from
Acting as Officers or Directors of a Public Company
, Civil Action No. 02 CV 7749 (SDNY) (JSR)
, Civil Action No. 02 CV 7958 (SDNY) (JSR)
The Securities and Exchange Commission announced today that judgments
of permanent injunction were entered November 14 in two of its pending
civil enforcement actions in the WorldCom matter -- those against
David F. Myers, formerly WorldCom's Controller, and Buford Yates Jr.,
formerly WorldCom's Director of General Accounting. Both actions are
pending in the U.S. District Court for the Southern District of New
York before Judge Jed S. Rakoff. The judgments signed by Judge Rakoff
impose the full injunctive relief sought by the Commission, prohibit
each defendant from acting as an officer or director of any public
company, and provide that monetary relief will be decided by the Court
at a later date. The court retained jurisdiction for all purposes,
including the imposition of further equitable relief and sanctions as
may be determined following a hearing. Each defendant consented,
without admitting or denying the allegations in the Commission's
complaint, to the entry of the judgment against him.
The Commission also announced today that each defendant has agreed to
be suspended from practicing before the Commission as an accountant.
The Commission's investigation into matters related to WorldCom's
financial fraud is continuing.
In its complaints in the actions pending before Judge Rakoff, the
Commission charged Myers and Yates with participating in a massive
fraud that inflated WorldCom's earnings at the direction and with the
knowledge of WorldCom's senior management. The Commission sought
permanent injunctions, disgorgement of any ill-gotten gains, civil
money penalties, and orders barring each defendant from serving as an
officer or director of a public company. (Litigation Release Nos.
17753 and 17771)
The judgment entered against David F. Myers (1) enjoins him from
violating Section 17(a) of the Securities Act of 1933 ("Securities
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