Walter “Walt” Pavlo holds an engineering degree from West Virginia University and an MBA from the Stetson School of Business at Mercer University. He has worked for Goodyear Tire in its Aerospace division as a Financial Analyst, GEC Ltd. of England as a Contract Manager and as a Senior Manager in MCI Telecommunication’s Division where he was responsible for billing and collections in its reseller division.
As a senior manager at MCI, Mr. Pavlo was responsible for the billing and collection of nearly $1 billion in monthly revenue for MCI’s carrier finance division. Beginning in March of 1996, Mr. Pavlo, one member of his staff and a business associate outside of MCI began to perpetrate a fraud involving a few of MCI’s own customers. With a beautiful wife, two kids and a promising career, Pavlo epitomized the American dream. Pavlo’s life took a dark turn when he became a willing participant in the company’s efforts to hide from investors and potential acquirers a mountain of bad debt run up by mobsters and other unsavory customers. Encouraged by higher-ups, Pavlo became accomplished at accounting gimmickry. When the scheme was completed, there had been seven customers of MCI defrauded over a six-month period resulting in $6 million in payments to the Cayman Islands.
In January 2001, in cooperation with the Federal Government, Mr. Pavlo pled guilty to wire fraud and money laundering and entered federal prison shortly thereafter. His story highlights the corrupt dealings involving the manipulation of financial records within a large corporation. His case appeared as a cover story in the June 10, 2002 issue of Forbes Magazine.
Since his 2003 prison release, Pavlo has made his living giving cautionary speeches on his crimes and the environment that bred them. Mr. Pavlo has been invited to speak on his experiences by the Federal Bureau of Investigation, US Attorney’s Office, major university MBA programs, corporations and various professional societies. His is a cautionary tale for those faced with ethical decisions in the workplace.
