Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile
    • Networking

    Former WorldCom CEO Indicted

    By
    Caron Carlson
    -
    March 2, 2004
    Share
    Facebook
    Twitter
    Linkedin

      Bernard Ebbers, former CEO of WorldCom Inc.— now doing business as MCI— was indicted today for conspiracy and securities fraud for his alleged role in inflating the value of the companys stock in light of its weakening financial condition. The charges came shortly after the companys former chief financial officer, Scott Sullivan, pleaded guilty to related criminal charges.

      In a filing with the U.S. Attorneys Office for the Southern District of New York, U.S. Attorney General John Ashcroft announced at a press conference in Manhattan this afternoon that the U.S. government has charged that Ebbers, Sullivan and other WorldCom officials knew about the companys poor finances, but that Ebbers insisted that false results be reported publicly. Ebbers and Sullivan agreed that fraudulent entries would be made in the companys books, including revenue, income, line cost expenses, earnings per share and EBITDA, the government charged.

      Ebbers and Sullivan were also charged with making false statements and misleading omissions in conference calls with securities analysts. In February, 2000, for example, Ebbers is reported to have said in an interview that WorldCom was a “sound financial company.”

      According to a Department of Justice spokesman, Ebbers is expected to be arraigned tomorrow. The former WorldCom executives could face a maximum sentence of 5 years in prison for the conspiracy charge. The securities fraud counts each carry a maximum sentence of 10 years in prison.

      Also today, the U.S. Securities and Exchange Commission filed a civil suit against Sullivan. The lawsuit alleges that Sullivan instructed subordinates to make numerous improper accounting adjustments, worth up to hundreds of millions of dollars, and that he made false and misleading public statements, and signed false SEC filings.

      Todays actions are part of a series of enforcement procedures over the last two years that came in the wake of massive fraud disclosures at several large corporations. Emphasizing that top corporate officials will be held accountable for their involvement, SEC Enforcement Division Director Stephen Cutler said, “no matter how high executives climb on the corporate ladder, they will never be above the law.”

      /zimages/1/28571.gifCheck out eWEEK.coms Servers & Networking Center at http://networking.eweek.com for telecom news, views and analysis.

      Sullivan was permanently suspended from working in public accounting, and he is permanently barred from serving as an officer or director of a public company.

      The SEC has taken 5 civil enforcement actions in connection with WorldComs accounting fraud, which led to the largest bankruptcy filing in U.S. history in July, 2002. The company improperly accounting overstated its income by at least $9 billion.

      Current WorldCom officials had planned to complete the companys emergence from bankruptcy last week, but asked the court to extend the conclusion until the end of April. Once the bankruptcy emergence is complete, the companys name will change officially to MCI.

      Caron Carlson

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×