Feeds

Ebbers faces WorldCom court showdown

Trial eagerly awaited

  • alert
  • submit to reddit

Security for virtualized datacentres

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

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.