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Former WorldCom chief found guilty of all charges

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Tuesday, March 15, 2005 A federal jury found Bernard Ebbers guilty on all nine counts in an indictment for fraud, conspiracy and false regulatory filings. The verdict was handed down by a New York jury after 8 days of deliberation on the former WorldCom CEO and mastermind behind the accounting scandal that brought down the telcom giant.

AP writer Erin McClam reported that when the verdict was announced, “Ebbers’ face reddened.”

Sentencing is set for the second Tuesday of next week when he could receive 85 years in prison for the conviction.

Ebbers who took the stand in his own defence, said he left the details of the company's accounting to others and that he had no knowledge of shady practices. But Scott Sullivan, the ex-chief financial officer of the company and key prosecution witness, directly linked Ebbers to the fraud. Sullivan agreed to co-operate with prosecutors in the hopes of receiving a lenient sentence for his own involvement in the scandal.

The fall of WordCom sparked a massive class action law suit by investors. The plunge in WorldCom's stock changed the capitalized value of the company in the range of $11 billion as the scandal unravelled. Secuities fraud cases stemming from the suits will probably break new legal ground where the involvement of investment banks and public accounting firms who would normally check company irregularities will be called into legal question.

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  This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License
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