Bernie Ebbers, the former CE of WorldCom, has gone on trial, accused of allegedly cooking the books during his time at the company to the tune of $11bn. It's been a long road: from the first signs of trouble back in 2002, to WorldCom's emergence from Chapter 11 bankruptcy protection and rebirth as MCI Inc., to Sarbox legislation, to the current trial.
Bernie Ebbers, the former CE of WorldCom, has gone on trial, accused of allegedly cooking the books during his time at the company to the tune of $11bn. It’s been a long road: from the first signs of trouble back in 2002, to WorldCom’s emergence from Chapter 11 bankruptcy protection and rebirth as MCI Inc., to Sarbox legislation, to the current trial.
You can trace the saga from its very beginning in 2002 right through the current trial by following the links below. It will be updated regularly in the coming months.
Back in 2002 we wrote:
With the financial world still reeling from the collapse of Enron, and the conviction of its former auditor Andersen for obstruction of justice, world financial markets have been sent into further turmoil by allegations of massive fraud at global telecom WorldCom.
Disgraced firm Andersen has attacked former WorldCom chief financial officer Scott Sullivan for withholding vital information, as it faces up to accusations of an alleged $4bn (£2.62bn) accounting fraud.
The firm pointed the finger at the recently resigned CFO Sullivan, as telecom company WorldCom stated it would have to restate its financial results to account for billions of dollars in improper bookkeeping.
And now the US financial watchdog, the Securities and Exchange Commission has charged the US telecommunications giant with fraud.
To follow the saga, click on the links below. You can also read the statements from Andersen and WorldCom in full.
Click here to follow the trial and conviction of Andersen following its work at Enron.