Feeds

Ebbers faces WorldCom court showdown

Trial eagerly awaited

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Disgraced former Worldcom boss Bernie Ebbers is due to face criminal charges in a New York court this week following the $11bn (£5.8bn) accounting scandal that rocked the corporate world.

Ebbers is charged with fraud and conspiracy related to the collapse of telcoms outfit WorldCom in July 2002. He retired from WorldCom in April 2002, months before it went titsup.

In March 2004 ex-CFO Scott Sullivan pleaded guilty to similar charges and is co-operating with investigators. His evidence is expected to form part of the prosecution against Ebbers.

The trial against Ebbers was due to kick off in November but was delayed until now to give his defence team more time to prepare its case. According to The Guardian, Ebbers is expected to blame Sullivan for the accounting blackhole.

When details of the accounting scandal first emerged in the summer of 2002, the Securities Exchange Commission (SEC) described the WorldCom disclosures as "improprieties of unprecedented magnitude"

US President George W Bush said at the time: "We will fully investigate and hold people accountable for misleading not only shareholders but employees as well."

Where "egregious practices, such as the one today" are uncovered, said Bush, "we'll go after them."

This month ten former directors of WorldCom agreed to cough up $18m (£9.5m) of their own cash to hsettle a class action lawsuit following the collapse of the telecoms company.

The ten weren't directly involved in the accounting fraud but were named in lawsuits. In total, they will pay $54m (£28.7m) to settle the lawsuit brought by former shareholders. $36m (£19m) will be paid by the directors' insurers with the rest coming from their own pockets.

WorldCom emerged from Chapter 11 bankruptcy protection in April and since changed its name to MCI. ®

Related stories

Former Worldcom directors cough up $18m
MCI upbeat despite $3.4bn loss
Ebbers sued for $400m
Ebbers and chums pay $51m to settle pensions suit
Ex-WorldCom CFO coughs in Mississippi court case

Secure remote control for conventional and virtual desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.