A federal judge passed down a slightly lighter sentence than the 30 to life recommended in sentencing guidelines.
Former WorldCom head Bernard Ebbers faces an October 12 date with the federal penal system, upon being sentenced for his role in a massive accounting cover-up of $11 billion USD in fraud.
WorldCom booked revenue it knowingly would not collect, and classified operating expenses as capital expenditures, an explicit violation of generally accepted accounting principles.
Judge Barbara Jones passed down a sentence of 25 years in finding Mr. Ebbers guilty of nine counts of fraud, conspiracy, and filing false reports with federal regulators. The judge noted Mr. Ebbers’ declining health and charitable works in lowering the minimum sentence.
The defense team for Mr. Ebbers will file an appeal, and contends the defendant did not know of the fraud, which they claim was committed by underlings at WorldCom. Prosecutors wanted an 85 year sentence, citing the thousands of victims of WorldCom’s sinister dealings.
Federal prosecutors were unable to get any traction in their case against the one-time CEO of a $180 billion company, until former chief financial officer Scott Sullivan decided to plea guilty before his own trial began and testify against his old boss.
Mr. Ebbers follows Adelphia family members John and Timothy Rigas in receiving a lengthy jail term for their roles in corporate fraud. And ex-Tyco International CEO Dennis Koslowski may follow them as well, though it is suspected he and former Tyco CFO Mark Swartz will be sentenced for a lesser term than the 30 potential years they face.
David Utter is a staff writer for Murdok covering technology and business. Email him here.
