Walt Pavlo, a former MCI executive who served 41 months in federal prison for a scheme that defrauded customers in 1996, spoke to business students and others during a presentation Thursday, Sept. 7 in the LaRose Digital Theatre, located in the Ernest A. Koury Sr. Business Center.
Pavlo joined MCI in 1992 and by 1995 was senior manager of the company’s accounts receivable division. He devised an elaborate scheme that hid losses on the company’s books, losses suffered when high risk customers failed to pay their bills on time. By adjusting various accounting practices, Pavlo “made the books look good,” he said.
He also took responsibility for his actions. “I don’t want to take lightly what I’ve done, and I apologize for it. I’m not here to make excuses, because there are none.”
Pavlo left MCI in 1997, thinking it would make the problem go away. Meanwhile, he said he received a letter telling him he was the subject of a grand jury investigation and nearly had a nervous breakdown.
“I wondered if the car at the end of the driveway was the FBI trailing me, and the fact of the matter is that sometimes it was,” Pavlo said. “But in my mind, it always was.”
Pavlo cooperated with the federal government and in 2001 pleaded guilty to wire fraud and money laundering. Though he has served his sentence, his punishment continues, he said.
“The punishment for a white collar felon is a lifelong punishment. As a result of this, I’ve declared bankruptcy, I’m divorced after 15 years of marriage, I can’t be a CPA and I can’t vote,” Pavlo said. In addition, his income is monitored, and until 2029, he must make regular restitution payments.
He urged students to think about the lifelong consequences of dishonesty. “You know that old saying, when you cheat you’re only cheating yourself? It’s true. Cheating prohibits you from finding out who you are and finding out what your passion is.”