A New York federal judge gave her blessing Thursday to a deal under which former WorldCom finance chief Scott Sullivan will forfeit his ornate Florida mansion and his retirement account to settle with investors who lost billions when the telecom company was toppled by a fraud scandal.

U.S. District Judge Denise Cote granted preliminary approval to the settlement that will leave Sullivan almost penniless just two weeks before he is likely to be sentenced to prison time for his role in the $11 billion WorldCom fraud.