NEW YORK, Aug 1: Two former top executives of bankrupt telecommunications firm WorldCom Inc. were arrested on Thursday for their role in the 3.85 billion dollars accounting scandal that has rocked confidence in corporate America, an FBI spokesman said.

Former WorldCom Chief Financial Officer Scott Sullivan and former Controller David Myers surrendered to authorities early Thursday morning.

The two former executives, dressed in dark suits, were led handcuffed into federal custody in downtown Manhattan.

One federal worker on the scene clapped as the two walked by slowly.

“I work for the federal government and I lost $9,000. We’ve been snookered. We’ve been lied to,” said the worker.

The two have been under investigation by the US Justice Department for their roles in improperly booking WorldCom routine expenses as capital spending.

WorldCom, which has been sued for fraud by the US Securities and Exchange Commission, filed for the world’s largest bankruptcy in July as it buckled under 40 billion dollars in debt and the accounting scandal.

The company fired Sullivan, who it alleged orchestrated the accounting debacle. Chief Executive Bernie Ebbers resigned under pressure in April.—Reuters