USDA Approves $7.5 Million Loan to WorldCom Felon
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You have to wonder how hard the vetting is to get some loot from the federal government when you read stuff like this:
David Myers was at the epicenter of one of the biggest corporate frauds in U.S. history. Now the former WorldCom Inc. controller is rebuilding his life a decade later with the help of the federal government.
The USDA guaranteed a $7.45 million loan from a Louisiana bank, allowing Myers and his partner to finance the purchase of a home health agency that provides care to 650 people in the Mississippi Delta, one of the poorest regions in the U.S.
Myers, 54, served nine months in prison for helping to falsify the telecommunications company’s books to meet earnings targets. The $11 billion accounting fraud wiped out more than 17,000 jobs and $184.6 billion in market value from WorldCom’s high on June 1999. Myers’s cooperation with prosecutors led to the guilty plea of Scott Sullivan, WorldCom’s former chief financial officer, who became the star government witness in the trial of Chief Executive Officer Bernie Ebbers. Ebbers was convicted in 2005.
One of his former employees is a bit outraged over his getting the loan, saying he can’t be trusted with it. She lost most of her savings in the fraud.
But the prosecutor of the case said it was all good. After all, he cooperated and learned his lesson.
Plus, he wrote a three page letter, so that’s something.
Hat Tip: The Foundry