WorldCom charges grow

The government brought new bank fraud charges against former WorldCom chief financial officer Scott Sullivan on Wednesday, accusing him of lying on financial statements to secure $4.25 billion in credit for the company.

The latest charges could signal that plea bargain talks with Sullivan have broken down as prosecutors consider a case against former WorldCom CEO Bernard Ebbers, said Robert Mintz, a former federal prosecutor.

Sullivan faced 65 years in possible prison time on the original charges; the new charges could add 120 years.

Lawsuit

H&R Block loses ruling

H&R Block said Wednesday a federal judge had rejected a proposed $25 million settlement concerning the Kansas City, Mo. firm’s popular tax-refund loans.

The nation’s largest tax preparer and its banking partner, Household Finance, are accused of illegally gouging customers by providing “refund anticipation loans” at interest rates frequently exceeding 100 percent.

In the ruling, the judge pointed to settlements Block has reached in recent months in Texas and New York, noting that Block has been willing to pay “substantially more” than it agreed to pay in the federal case.

Telecommunications

Former Sprint president to receive $5.7 million

Former Sprint Corp. president and chief operating officer Ronald T. LeMay will receive about $5.7 million in compensation and consulting under a separation agreement with the telecommunications giant.

LeMay, who left Sprint last week after the company’s board questioned his use of a certain tax shelter, will receive $190,400 per month in compensation for 18 months, according to a filing with the Securities and Exchange Commission. LeMay will receive another $190,400 per month for 12 months for a consulting contract with the Overland Park-based firm.

Retail

Starbucks buys rival

Starbucks Corp. is buying hometown rival Seattle Coffee Co. for $72 million in cash, the companies said Wednesday.

The deal with Seattle Coffee’s parent company, Atlanta-based AFC Enterprises, includes Seattle Coffee’s subsidiaries — Seattle’s Best Coffee with 129 stores and Torrefazione Italia, with 21 stores. All are in the United States and Canada.