What was Bernard Ebbers convicted of?

securities fraud
Ebbers was convicted in New York in 2005 on securities fraud and other charges and received a 25-year sentence.

What did Bernie Ebbers do wrong?

Ebbers, 78, had served about 13 years of his 25-year prison sentence for orchestrating an $11 billion accounting fraud by the defunct telecommunications company. Ebbers, who is legally blind, has suffered from dementia, dramatic weight loss and other ailments while in prison, his family and lawyers have said.

Who went to jail for WorldCom?

Bernard Ebbers
Bernard Ebbers, the former CEO of WorldCom, who went to prison in 2006 for his role in an $11 billion accounting fraud case, has died.

When was Bernard Ebbers found guilty?

2005
Ebbers was convicted by a Manhattan jury in March 2005 for orchestrating the fraud, and was found guilty of securities fraud, conspiracy and other crimes.

Did Scott Sullivan go to jail?

Former WorldCom Inc. Chief Financial Officer Scott Sullivan was sentenced to five years in prison yesterday for his role in engineering the $11 billion accounting fraud that led to the bankruptcy of the telecommunications powerhouse.

Did Arthur Andersen know about WorldCom?

“The WorldCom CFO did not tell Andersen about the line-costs transfers nor did he consult with Andersen about the accounting treatment,” the statement said. “It is of great concern that important information about line costs was withheld from Andersen auditors by the chief financial officer of WorldCom.”

Who was the whistleblower at WorldCom?

Cynthia Cooper
Cynthia Cooper exploded the bubble that was WorldCom when she informed its board that the company had covered up $3.8 billion in losses through the prestidigitations of phony bookkeeping.

What is Ebbers accountable for?

Ebbers was found guilty Tuesday on all counts against him of conspiracy, securities fraud and false regulatory filings for his role in a massive accounting fraud that led to the downfall of the nation’s second-largest telecommunications firm and cost investors billions of dollars.

Is Scott Sullivan still in jail?

Sullivan was released from jail in August 2009, after serving four years of his sentence.

What was Worldcoms punishment?

Bernard J. Ebbers, the former chairman of WorldCom, was sentenced yesterday to 25 years in prison for orchestrating a record $11 billion fraud that toppled the telecommunications company he founded.

What happened to WorldCom CFO?

Former WorldCom CFO Scott Sullivan Thursday was sentenced to five years in prison for his role in engineering the $11 billion accounting fraud that led to the bankruptcy of the telecommunications powerhouse.

What did Arthur Andersen do wrong in WorldCom?

The lawsuit had accused Andersen of violating securities laws by failing to protect investors from WorldCom’s accounting fraud, which led to WorldCom’s bankruptcy filing, the largest in United States history.

What happened to the auditing firm of Arthur Andersen as a result of their waste management audits?

WASHINGTON — The Securities and Exchange Commission, in one of the first fraud cases ever filed against a Big Five accounting firm, fined Arthur Andersen LLP and three partners more than $7 million in connection with audits of Waste Management Inc.’s annual financial results.

Who is Betty Vinson?

Betty Vinson was the director of management reporting at WorldCom. She had worked there for five years when the fraud was uncovered and received two promotions during that time. Vinson’s salary increased from $50,000 when she started to $80,000 in 2002.

What happened to the Enron whistleblower?

Watkins was one of three whistleblowers named as Time magazine’s persons of the year in 2002. She testified before Congress and during the trials of fellow Enron officials, including Ken Lay. But he died before his sentencing for a fraud conviction at age 64.

How did WorldCom’s accountants conceal over $9 billion in expenses?

In general, WorldCom manipulated its financial results in two ways. First, WorldCom reduced its operating expenses by improperly releasing certain reserves held against operating expenses. Second, WorldCom improperly reduced its operating expenses by recharacterizing certain expenses as capital assets.

Who is David Myers WorldCom?

David Myers, former controller of WorldCom speaks about the importance of standing firm ethically when faced with decisions in the workforce. Myers was involved in an 11 billion dollar accounting scandal in 2002, when WorldCom came under pressure to cover its declining profitability.

What happened to Scott Sullivan of WorldCom?

Received reduced sentence after cooperating with prosecutors Former WorldCom Inc. Chief Financial Officer Scott Sullivan was sentenced to five years in prison yesterday for his role in engineering the $11 billion accounting fraud that led to the bankruptcy of the telecommunications powerhouse.

Why was Arthur Andersen conviction overturned?

Opinion of the Court In the court’s view, the instructions allowed the jury to convict Andersen without proving that the firm knew it had broken the law or that there had been a link to any official proceeding that prohibited the destruction of documents.

What was the Arthur Andersen scandal?

On June 15, 2002, Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron, resulting in the Enron scandal. Although the Supreme Court reversed the firm’s conviction, the impact of the scandal combined with the findings of criminal complicity ultimately destroyed the firm.

Are WorldCom’s non-executive directors independent?

In 2001, the board of WorldCom consisted of more non-executive directors than executive directors, also known as ‘professional boards’ (Tricker, 2019). However, these non-executive directors cannot be seen as fully independent.

What was the Board of directors of Worldcom made of?

Namely, Gerson & Alhassan (2004) state that the board of directors of WorldCom consisted out of friends of the CEO, Bernard Ebbers, and executives from companies previously acquired by WorldCom.

Who are WorldCom’s nominees for the Board of directors?

Judith Areen (57), a nominee, director of WorldCom since September 1998. Executive Vice-President for Law Center Affairs and Dean of the Law Center of Georgetown University since 1989. Carl J. Aycock (53), a nominee, director of WorldCom since 1983. Self-employed as a financial administrator since 1992. Former employee of WorldCom.

What did the Audit Committee do wrong at WorldCom?

The audit committee members lacked knowledge of WorldCom’s internal financial workings and, thus, were not able to understand and exercise judgement on financial issues (Kaplan & Kiron, 2007). In addition, the members were not involved with the company – the committee held one meeting of only three to five hours each year (Kaplan & Kiron, 2007).