The Rittenhouse Review

A Philadelphia Journal of Politics, Finance, Ethics, and Culture

Thursday, August 01, 2002  

Sullivan and Myers Do the Perp Walk

Federal prosecutors this morning arrested Scott Sullivan and David Myers, the former chief financial officer and controller, respectively, of now-bankrupt WorldCom Inc.

The two were arraigned in New York this morning and are expected to be charged with mail and securities fraud.

Although Sullivan and Myers turned themselves in, they were still forced to do “the perp walk” in front of photographers while handcuffed. CNBC played the film of that incident several times this morning.

Former Chief Executive Officer Bernard Ebbers has not been arrested but it’s likely Sullivan and Myers will provide sufficient evidence to prosecutors whether or not they enter plea bargains that include lesser sentences.

Meanwhile, CNBC “Squawk Box” reporter David Faber today raised an interesting question: “Where are the Enron arrests?”

Faber observed that arrests came relatively quickly after the public first learned of the various forms of malfeasance cases at WorldCom, ImClone Systems Inc., and Adelphia Communications Corp.

And yet there have been no arrests of any former Enron Corp. executives, the most likely candidates for which would be Andrew Fastow, Kenneth Lay, and Jeffrey Skilling.

In fact, according to Faber, former Enron Chairman Lay has been seen “playing golf on posh courses” around the country, locations he reaches by flying on his private jet.

We seem to recall the oh-so-lovely second Mrs. Lay appearing on national television tearfully lamenting that “it,” meaning all of their fortune, tied up in Enron stock, “was gone.”

Indeed, the rich are different. They’re shameless.

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