Feeds

Ebbers' financial know-how probed

'I'm a PE graduate, not an economist'

  • alert
  • submit to reddit

Build a business case: developing custom apps

The prosecution in the Bernie Ebbers fraud trial wheeled out an analyst yesterday who testified that the ex-WorldCom boss seemed to know a thing or two about the firm's accounting procedures.

Adam Quinton, an analyst at financial giant Merrill Lynch & Co, told the court that when Ebbers was quizzed on some fairly complex financial matters he was able to answer in a "in a reasonable amount of detail".

But while Ebbers was shown to have a handle on financial matters, Quinton also testified that former CFO Scott Sullivan usually dealt with the numbers questions, PA reports.

The analyst's testimony was part of the prosecution's case to prove that Ebbers had the financial know-how to mastermind the $11bn (£5.8bn) accounting fraud that led to the collapse of WorldCom in 2002.

Ebbers denies being involved in one of the US's biggest corporate scandals. He says he was incapable of being behind such a widespread and complex fraud.

Playing tapes of conference calls with analysts dating back to 2001/2, Ebbers is heard passing taxing financial questions to Sullivan, who last year admitted "engaging in a fraudulent scheme to conceal WorldCom's poor financial performance" and is the Government's star witness against Ebbers.

At one point, when Ebbers is asked about the US economy, he is heard saying: "...remember, I'm a PE graduate, not an economist. So I don't know that I can speak to that with any credibility or anything".

The trial is expected to last eight weeks. If found guilty, Ebbers faces up to 25 years in jail. ®

Related stories

Gloves off in Ebbers WorldCom fraud trial
Ebbers fraud trial kicks off
Ebbers faces WorldCom court showdown
Former Worldcom directors cough up $18m
MCI breaks free from Chapter 11
WorldCom gets sums wrong by $74bn
Bernie Ebbers faces criminal charges

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.