NEW YORK (AP) – Former WorldCom finance chief Scott Sullivan will sell an extravagant home he is building in Florida and turn the proceeds over to investors, federal prosecutors said Tuesday.

The government said about $4 million from the sale of the Boca Raton home would be made available to investors in the fraud-toppled telecom after broker fees are taken out and Sullivan pays off existing loans.

Sullivan faces sentencing Aug. 11.

The agreement settles Sullivan’s part in a lawsuit brought by investors who lost billions of dollars when WorldCom collapsed three years ago in an $11 billion accounting fraud – the largest in U.S. history.

Sullivan faces sentencing Aug. 11 for his role in the fraud and is almost certain to receive a prison sentence. He was the star witness against WorldCom’s ex-CEO Bernard Ebbers, who was sentenced to 25 years in prison.

Prosecutors said Sullivan also would sell what was left of his WorldCom retirement account and turn that money over to investors.

The settlement also orders Sullivan’s wife to turn over some of her personal money into a trust fund that will go toward expenses for raising the couple’s young daughter.

The two remaining defendants in the investor lawsuit, former WorldCom controller David Myers and former accounting director Buford Yates, have so little money left they are unable to pay anything to investors, prosecutors said.

Myers and Yates – along with two other lower-ranking WorldCom accountants who pleaded guilty in the fraud – also face sentencing in August but are likely to get less prison time than Sullivan.

Investors have already recovered more than $6 billion in settlement money from the class action suit, most of it forked over by major investment banks that underwrote WorldCom securities.

Ebbers agreed to turn over nearly all his personal assets and have them sold off. The proceeds are expected to top $25 million and could reach as high as $40 million.

AP-ES-07-26-05 1820EDT