Accounting Fluff

So the trial of Bernie Ebbers, former WorldCom CEO, for fraud is beginnning, and the chief witness against him is the company's former CFO. Scott Sullivan testified this week that Ebbers was told quarterly that in order to "make the numbers" demanded by Wall Street, the green eyeshade accountants had to add "fluff" to WorldCom's revenues and understate expenses. Ebbers Told of 'Accounting Fluff' [USAToday.com].

This is very damning evidence and (as in Martha Stewart) more than enough to convict the slimebag Ebbers. WorldCom went down in an $11 billion accounting scandal because someone booked expenses as assets, thus artifically inflating revenues and understating costs in order to maintain false EPS reports. Bernie either knew about it or directed it -- matters not. He's going down, and it could not happen to a more rotten guy.

 Posted by glenn