Ex-WorldCom CEO Ebbers Booked on Criminal Charges in Okla

quicken.com ^ | 9/3/2003 | AP

[BeerSwillr]

OKLAHOMA CITY -- Former WorldCom Inc. (WCOEQ, news) chief executive Bernie Ebbers was booked Wednesday on criminal charges of violating Oklahoma securities laws in a massive accounting fraud.

Mr. Ebbers, whose company collapsed last year in the nation's largest bankruptcy, was fingerprinted and booking photographs were taken of him, said Oklahoma County sheriff's Sgt. Rochelle Thompson. Following booking, Mr. Ebbers was released pending a 1:30 p.m. CDT court appearance before Oklahoma County Judge Russell Hall.

Mr. Ebbers and five other former officials with the telecommunications giant, now known as MCI Inc. (MCWEQ, news), are accused of 15 felony counts. Each count carries up to a $10,000 fine and a 10-year prison sentence. The company was also charged in the complaint. These were the first charges against Mr. Ebbers or the company in an $11 billion accounting fraud.

The charges were brought by Oklahoma Attorney General Drew Edmondson, who said false information on company documents, showing overstated earnings and understated expenses, led to Oklahoma investors losing millions, including a $64 million hit taken by state pension funds on investments in the company.

Although the state case is the first criminal charges against Mr. Ebbers and the company itself, former WorldCom executives such as ex-chief financial officer Scott Sullivan have been charged in federal court. Mr. Sullivan was named in the Oklahoma complaint.

Four other ex-executives who have pleaded guilty to federal charges and are helping federal prosecutors are also charged in Oklahoma: David Myers, Buford Yates Jr., Betty Vinson and Troy Normand.

[BeerSwillr]

Maybe some justice is coming.

[Happy2BMe]

"OKLAHOMA CITY -- Former WorldCom Inc. (WCOEQ, news) chief executive Bernie Ebbers was booked Wednesday on criminal charges of violating Oklahoma securities laws in a massive accounting fraud."

This does no sayf Ebbers was extradited back to Oklahoma for the booking.

Was he?

[BeerSwillr]

Other posting related to this...

http://www.freerepublic.com/focus/f-news/971508/posts

http://www.freerepublic.com/focus/f-news/971701/posts

[BeerSwillr]

We it does say he was released pending a hearing...

[StoneColdTaxHater]

I work for MCI, all I can say is I'd love to see bernie in jail traded amongst lifers for a pack of smokes.

[Elliott Jackalope]

Dream on. Laws are for little people.

Here is the mantra of modern America: Rules are for fools, laws are for losers and little people. Big powerful rich people make their own rules, then hire liars, er, lawyers to hide their crimes and give the thieves an air of respectability.

Having been through a multi-year lawsuit concerning very valuable intellectual property that was stolen from me during "due diligance" (i.e. bend over and smile) by venture capitalists, I can assure you that our justice system is the very best that money can buy.

Rules are for fools, laws are for losers and little people. When you agree to play by the "rules", you agree to be a victim.

[Treebeard]

He was in the Oklahoma County Jail this morning for mugshots, prints, etc, according to local news.

According to Sheriff John Whetsel, "Ebbers turned himself in...surrendered" this morning.

[BeerSwillr]

Is that why I can't seem to get ahead? I'm doing it wrong?

Jeez, I hope you won the right to what is yours in that lawsuit.

[Elliott Jackalope]

Let's put it this way. I no longer work on new ideas, I only work on projects that I can do with my own two hands. The bastards have yet to figure out how to steal my hands. Not yet, at least.

[Happy2BMe]

"He was in the Oklahoma County Jail this morning for mugshots, prints, etc, according to local news.

According to Sheriff John Whetsel, "Ebbers turned himself in...surrendered" this morning."

Hot DAM! - I'll say ONE THING for Edmonson, the man has got some stones!

Does Enron owe anybody money in OkieLand!?

WorldCom chronology
• 1985 — Early investor Bernard Ebbers becomes chief executive of discount long-distance provider LDDS (Long-Distance Discount Service).
• 1995 — LDDS acquires Tulsa-based voice and data transmission company Williams Telecommunications Group (WilTel) for $2.5 billion cash and changes its name to WorldCom.
• 1998 — WorldCom merges with MCI Communications in a $40 billion deal, the largest such transaction in history at that time.
• March 11, 2002 — WorldCom receives a request for information from the U.S. Securities and Exchange Commission relating to accounting procedures and loans to officers.
• April 3, 2002 — WorldCom says it is cutting 3,700 jobs in the U.S., 4 percent of the company's work force.
• April 30, 2002 — Ebbers resigns under board pressure amid slumping share prices and SEC probe of the company's support of his personal loans.
• May 13, 2002 — Standard & Poor's removes WorldCom from its S&P 500 Index.
• June 25, 2002 — WorldCom fires Chief Financial Officer Scott Sullivan and accepts resignation of Controller David Myers after uncovering improper accounting of $3.8 billion in expenses starting in 2001. The company says it will cut 17,000 jobs, or 20 percent of its work force.
• June 26, 2002 — SEC files civil fraud charges against WorldCom. The U.S. Justice Department says it is investigating.
• July 1, 2002 — WorldCom discloses that an internal investigation has uncovered questionable accounting practices stretching back as far as 1999.
• July 8, 2002 — Ebbers tells the U.S. House Financial Services Committee he did nothing wrong and refuses to answer questions. Sullivan also refuses to testify.
• July 21, 2002 — WorldCom files the largest bankruptcy in U.S. history.
• Aug. 1, 2002 — Sullivan and Myers are arrested for their roles in the scandal.
• Sept. 27, 2002 — Myers pleads guilty to three counts of conspiracy, securities fraud and making false statements to the Securities and Exchange Commission.
• Oct. 7, 2002 — Buford Yates Jr., WorldCom Inc.'s former accounting director, pleads guilty to two counts of securities fraud and conspiracy.
• Oct. 11, 2002 — Two former finance officials, Betty L. Vinson and Troy M. Normand, plead guilty to conspiracy and securities fraud charges in separate proceedings.
• Nov. 6, 2002 — SEC expands fraud case against WorldCom Inc., with claims that the company's improper bookkeeping dates back to at least 1999, totaling more than $9 billion in fraudulent activity.
• April 22, 2003 — Sullivan pleads not guilty to securities and bank fraud.
• Aug. 27, 2003 — Oklahoma Attorney General Drew Edmondson files criminal charges against WorldCom Inc. and six former corporate executives.

[Treebeard]

Don't know about Enron, but Edmondson is after Ebbers because of the 64 mil that OK state pensioners lost in their retirement system.

Ebbers' hearing starts in 15 minutes. The local news media is breathlessly covering every second "Ebbers has just stepped off the elevator, flanked on all sides by his legal counsel..." I expect bathroom updates via "Stall Cam" at this rate.

[Happy2BMe]

"Don't know about Enron, but Edmondson is after Ebbers because of the 64 mil that OK state pensioners lost in their retirement system."

Not demeaning the value of that 64 mil, but it is a drop in the bucket to what Enron investors lost (all across the country).

Why don't you start a live "Edmonson fries Ebbers" thread!

[SGCOS]

..but Edmondson is after Ebbers because of the 64 mil that OK state pensioners lost in their retirement system

That's what is on the surface, but the rumor here is that Edmondson is running for senator in 2004.

[Happy2BMe]

"That's what is on the surface, but the rumor here is that Edmondson is running for senator in 2004."

If Ebbers and his gang go to jail, Edomonson stands a really good chance of winning.

[MEGoody]

It's about time! I just hope this action by Oklahoma doesn't interfere with the federal investigation (if there actually IS one going on!)

[MEGoody]

"This does no sayf Ebbers was extradited back to Oklahoma for the booking. Was he?"

Ebbers went voluntarily to Oklahoma from what I understand.

[zeugma]

I'm a 13-year ex MCIer... I want a ringside seat at Bernie's Deflowering!

[E.G.C.]

Here are my observations on the subject.

I've been following this story since I'm from the Sooner State. Something about this tells me that there is some political motivation behind all of this.

Back about 25 years ago, AT&T was the only phone service available to Oklahomans, then when MCI came in and other phone companies were allowed to compete with AT&T, phone bills went down.

Of course, some people do not like the idea of competition. They would rather see one company have a monopoly over everything.

MCI from what I understand is in the process of cleaning house and had been cooperating with federal oficials on this. It seems to me that our state AG is simply just doing this ofr poltical reasons. He is a Democrat.

He's the same one in fact who came out against the Boy Scout on the deal regarding their christian oath.

There are clrearly other isues more important than this like the outgrowths of methlabs growing across the state. Instead he chooses to go after a company that is already cooperating on issues that it has instead of letting things work out.

This is just another case of Democrats not caring at all about the best interests of where they're supposed to represent but rather thinking about their own selfish special political interests.
Regards.

[oceanview]

the federal investigation? LOL!

[ambrose]

Jail in an Oklahoma state prison isn't going to be nearly as pleasant for ol' Bernie than some "Club Fed"...