March 16, 2005

Bernie Ebbers convicted of WorldCom fraud

by brian_turner

Bernie Ebbers was last night convicted of fraud in the collapse of Worldcom by a jury in the United States.

Formerly a bouncer, a basketball coach and a milkman, he then in 1983 became an early investor in Long Distance Discount Service. Under Bernie Ebbers’ direction, the company turned itself from a regional Mississippi telecoms firm into a global billion-dollar corporate giant named Worldcom.

However, the company was built not simply on aggressive purchasing, but also on exaggerated revenues and false expenses.

In 2002 Worldcom collapsed, wiping out about $180bn (£94bn) in stock holdings and losing 20,000 people their jobs.

The fraud was held to have been squarely managed by the board of directors, and five executives have already pleaded guilty.

Bernie Ebbers is expected to appeal against the decision. If convicted, he could face a sentence of 85 years.

Story link: Bernie Ebbers convicted of WorldCom fraud

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