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Scandal Of Worldcom Scandal

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On Wednesday of March 15, 2005, Bernard Ebbers who was former CEO of WorldCom received a verdict of 25 years of prision. He was accused of one of the biggest financial frauds. “WorldCom, now known as MCI, filed the largest bankruptcy in U.S. history in 2002. The company's collapse led to billions of dollars in losses for shareholders and employees. Ebbers was convicted in March of nine felonies that carried a maximum prison term of 85 years.” (Crawford). An extensive investigation lead to the discovery of uncovered $11 billion dollars in fraudulent accounts. It was later discovered that during Ebber’s term of office as WorldCom’s CEO, that he had been over reporting earnings and downplayed expenses by $74.5 billion dollars. This investigation also led to the discovery of false bookkeeping numbers and unethical lending practices among its top executives. Ebber’s did not perform this fraudulent action on his own. Right by his side he had former CFO of WorldCom, Scott Sullivan who was sentenced to five years in prison and David Myers, former director of General Accounting of WorldCom who was sentenced to only one year in prison. WorldCom was the largest telecommunication company that evolved from a merger of Long Distance Discount Services along with other companies in 1989 including Sprint and Verizon. This company was composed of about eighty thousand employees and thousands and thousands of clients. During 1997, this company was priced at about thirty-seven billions
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