Feeds

Bernie Ebbers faces criminal charges

Colleague turns on former WorldCom boss

  • alert
  • submit to reddit

Intelligent flash storage arrays

Bernie Ebbers, the disgraced Worldcom boss, will face federal criminal charges after his former boardroom colleague turned supergrass.

Ebbers is charged with fraud and conspiracy related to the collapse of WorldCom in July 2002. Scott Sullivan, ex-CFO, pleaded guilty to similar charges and is co-operating with investigators. Sullivan also agreed to sell his $12m, 10-bedroom house to reimburse victims of the fraud.

Ebbers, who often cited the role of the good Lord in running WorldCom, is charged with conspiracy to commit securities fraud, securities fraud and filing misleading data with SEC. He retired from WorldCom in April 2002, months before its collapse.

Sullivan has accepted a permanent bar on acting as an officer and director of a public company or practising as an accountant. He admitted he was guilty of "engaging in a fraudulent scheme to conceal WorldCom's poor financial performance."

The Commission alleges "that by September 2000, Sullivan and other senior WorldCom executives knew that WorldCom's true operating performance and financial results were materially below the financial guidance they had given to Wall Street analysts and investors."

In July last year WorldCom agreed to pay $750m back to investors.

Click here forthe SEC statement ®

Related stories

MCI/Worldcom gets 'ethics' chief
Oklahoma AG takes aim at WorldCom, Ebbers
Judge waves through Worldcom $750m settlement

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.