Feeds

Bernie Ebbers faces criminal charges

Colleague turns on former WorldCom boss

  • alert
  • submit to reddit

SANS - Survey on application security programs

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

Combat fraud and increase customer satisfaction

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Intel sees 'signs of improvement in the PC business' but earnings remain 'Meh...'
Prospects for the future, however, please Wall Street money men
What's a right pain in the ASCII for IBM? Its own leech-like hardware biz
Keep your eyes on our cloud while we remove this pesky thing, say execs
Oracle's Larry Ellison has the MOST MASSIVE PACKAGE IN PUBLIC
Billionaire IT baron earns twice as much as the next in line, Disney chief Bob Iger
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.