WorldCom boss gets 25 years for fraud
Bernard Ebbers, who as the once-swaggering chief of WorldCom oversaw the largest corporate fraud in US history, wept in court when a judge sentenced him to 25 years in prison.
It was the toughest sentence yet in a string of recent corporate scandals.
Ebbers, now 63, would go to prison in October and not be eligible for release until he was 85.
The sentence was handed down by Judge Barbara Jones of US District Court in Manhattan three years after WorldCom collapsed in an $11bn-dollar (€9.1bn) accounting fraud, wiping out billions of investor dollars.
“I find that a sentence of anything less would not reflect the seriousness of this crime,” the judge said.
Ebbers sniffled audibly and dabbed at his eyes with a white tissue as he was sentenced. He did not address the court. His wife, Kristie Ebbers, cried quietly. Later, the two embraced as the courtroom emptied.
The judge ordered Ebbers to report to prison on October 12. She said she would recommend Ebbers be designated to the federal prison in Yazoo City, Mississippi, close to his home.
The judge said she would accept written arguments from the lawyers on whether Ebbers should be allowed to remain free while he appeals against the verdict.
Even if Ebbers began doing time in October and got a possible 15% reduction in his sentence for good behaviour, he would serve at least until early 2027, when he would be 85.
Gino Cavallo, a longtime WorldCom employee who said he lost tens of thousands of dollars in retirement savings because of the fraud, was at the sentencing and said he was satisfied.
“The man’s 63,” Cavallo said. “He’s going to die in jail. How much sterner could you get?”
Defence lawyer Reid Weingarten had asked for leniency, mentioning Ebbers’ heart condition and his charitable works, cited repeatedly in 169 letters sent to the judge. He described Ebbers as “a modest man” and an angel to many desperate charitable causes.
Ebbers is the first of six former WorldCom executives and accountants facing sentencing this summer. The other five all pleaded guilty and agreed to co-operate against their former boss.
