Federal Judge Appoints Monitor To Keep Detailed Watch On WorldCom

U.S. District Judge Jed Rakoff tapped Richard Breeden, who was chairman of the SEC from 1989 to 1993, as the monitor in the SEC's civil fraud suit against WorldCom over accounting improprieties.

WorldCom is struggling to avoid bankruptcy since announcing last week that it improperly accounted for nearly $4 billion in expenses, which inflated its financial results.

"I want a hands-on monitor who will report what's going on (and) ... feel free to look into every nook and cranny to fulfill his function," Rakoff said.

Breeden, who runs a company that tries to rescue failing companies, will be paid $800 an hour for his WorldCom work, the judge said.

His chief duties will be to prevent destruction of company documents, and to make sure employees--especially top executives --aren't given huge payouts while the company struggles to stay afloat.

"I'm not there to replace company management," said Breeden. "I'm there to be the eyes and ears of the court."

Before he can assume the job, Breeden must sell roughly 6,000 shares he owns in WorldCom, which have become virtually worthless, trading at 14 cents Wednesday on the Nasdaq Stock Market.

Rakoff also set a tentative trial date in the SEC action for March 21.

AP Business Writer Marcy Gordon in Washington contributed to this report.

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