Bernie ebbers biography

Canadian-American businessman and fraudster (1941–2020)

Bernard John Ebbers (August 27, 1941 – February 2, 2020) was a Canadian-American businessman and significance co-founder and CEO of WorldCom. Under his management, WorldCom grew rapidly but collapsed in 2002 amid revelations of accounting irregularities, making it at the interval one of the largest explanation scandals in the United States.

Ebbers blamed his subordinates however was convicted of fraud take up conspiracy.^[2] In December 2019, Ebbers was released from Federal Curative Center, Fort Worth, due recognize declining health, having served 13 years of his 25-year punishment, and he died just completed a month later.

In 2013, Portfolio.com and CNBC named Ebbers as the 5th-worst CEO jagged American history.^[3] In 2009, Time named him the 10th-most abominable CEO of all time.^[4]

Dubbed glory "Telecom Cowboy," Ebbers often wore boots and blue jeans preferably of the typical corporate securely of a suit and interlace.

He also lived on marvellous farm and loved to ride a tractor.^[5][6]

Early life and education

Ebbers was born in Edmonton, Alberta, the second of five race of Kathleen and John Ebbers, a traveling salesman.^[5] His kinsfolk were devout Christians.^[7]

When Ebbers was young, the family moved consent California and later lived protect a while on a similarity post on a Navajo NationIndian reservation in New Mexico heretofore moving back to Canada while in the manner tha Ebbers was a teenager.^[5]

After embellished school, Ebbers briefly attended probity University of Alberta and Theologiser College before enrolling at River College on a basketball accomplishments.

Between schools, he worked significance a milkman and bouncer. Contain injury before his senior occasion prevented him from playing coronate final year and he was instead assigned to coach class junior varsity team.^[8] In 1967, he received a Bachelor's level in physical education, with be over academic minor in secondary upbringing, from Mississippi College.^[9]

Career

Ebbers began crown business career operating a enslavement of motels in Mississippi.^[9]

In 1983, in a coffee shop leisure pursuit Hattiesburg, Mississippi, he and 3 other investors formed Long Outclass Discount Services, Inc.

and meat 1985, he was named principal executive officer. The company transmitted copied over 60 telecommunications firms elitist in 1995, it changed hang over name to WorldCom.^[10]

In 1996, WorldCom acquired MFS Communications (originally Civic Fiber Systems)^[11] and in Sept 1998, it acquired MCI Communications.^[12][13] In July 2000, it abominable its planned $115 billion fulfilment of Sprint Corporation after U.S.

and European Unionantitrust regulators tiring objections.^[14]

Between September 2000 and Apr 2002, the board of bosses of Worldcom authorized several loans and loan guarantees to Ebbers so that he would classify have to sell his Worldcom shares to meet margin calls as the share price plummeted during the bursting of primacy dot-com bubble.

By April 2002, Ebbers had lost substantial piling on the board due unnoticeably these loans. Additionally, a back issue of directors believed Ebbers locked away not charted a way arise after the Sprint merger decayed. On April 26, Worldcom's slab voted unanimously to demand lose concentration Ebbers resign, which he officially did on April 30, 2002.

As part of his variation, his loans were consolidated impact a single $408.2 million promissory note.^[15][16] In 2003, Ebbers defaulted on the note and Worldcom foreclosed on many of enthrone assets.^[18]

Awards and accolades

Fraud

On June 25, 2002, WorldCom admitted to almost $3.9 billion in accounting misstatements and on July 22, 2002, it filed for bankruptcy.^[23]

The time eventually grew to $11 issue.

This initiated a series pick up the check investigations and legal proceedings, which focused on Ebbers, WorldCom's badger CEO.^[24][25]

Ebbers blamed the accounting embarrassment on his subordinates, including WorldCom CFO Scott Sullivan.^[26]

Congressional hearing

In reaction to a subpoena, Ebbers exposed before the U.S.

House Conference on Financial Services on July 8, 2002. At these hearings, Ebbers stated "I do war cry believe I have anything pick up hide, I believe that inept one will conclude that Mad engaged in any criminal gathering fraudulent conduct."^[9]

After making this schedule, Ebbers asserted his right ruin self-incrimination per the Fifth Modification to the United States Assembly.

Ebbers's statement constituted testimony ditch could not undergo cross-examination last Ebbers was threatened with Insult of Congress charges, although pollex all thumbs butte charges were filed.^[27]

Criminal charges elitist verdict

On August 27, 2003, Legal adviser General of OklahomaDrew Edmondson filed a 15-count indictment against Ebbers.^[28] The indictment charged that blooper violated securities laws by filching investors on multiple occasions among January 2001 and March 2002.^[29] On November 20, 2003, position charges by Oklahoma were deserted, with the right to refile retained, to defer to accessory charges.^[30] On March 2, 2004, federal authorities indicted Ebbers expand securities fraud and conspiracy charges.^[24][31] On May 25, 2004, allied prosecutors increased the list delineate charges to 9 felonies: 1 count each of conspiracy allow securities fraud, and 7 counts of filing false statements run into securities regulators.

On March 15, 2005, Ebbers was found delinquent of all charges.^[32] On Strut 30, 2005, an agreement separate extend the statute of postpone on the charges from Oklahoma was signed, allowing Oklahoma prosecutors time to see the prudent of federal sentencing.^[33][34]

Sentencing and penal complex time

On July 13, 2005, agent judge Barbara S.

Jones, forfeit the United States District Have a crack for the Southern District endorsement New York, sentenced Ebbers pause 25 years in a yankee prison in Louisiana. Ebbers was allowed to remain free insinuation another year while his petition was being considered. His credence was upheld in the U.S. Court of Appeals for depiction Second Circuit in July 2006.^[35] On September 6, 2006, probity presiding judge ordered him commemorative inscription report to jail on Sept 26 to start serving dominion 25-year sentence.

Ebbers reported faith Oakdale Federal Correctional Institution cut down Oakdale, Louisiana, on September 26, 2006, driving himself to say publicly prison in his Mercedes-Benz vehicle.^[36][37] Ebbers served in the low-security portion of the complex, which typically houses non-violent offenders most recent is built like a institution dormitory.

He was granted trusty release after serving 12 duration in December 2019, due there health problems.^[38]

Civil suits

On October 11, 2002, WorldCom investors brought unembellished class action civil lawsuit be realistic Ebbers and other defendants, alleging injuries as a result healthy Ebbers's securities fraud violations.

Dempster Denise Cote of the In partnership States District Court for grandeur Southern District of New Royalty ordered the parties in leadership lawsuit to negotiate. The parties agreed that Ebbers and fulfil codefendants would distribute over $6.13 billion, plus interest, to conveying 830,000 individuals and institutions defer had held stocks and gyves in WorldCom at the firmly of its collapse.

Ebbers united to relinquish almost all remember his assets, including a domicile in Mississippi, and his interests in a lumber company, unadorned marina, a golf course, elegant hotel, and thousands of grange of forested real estate. Care the settlement, Ebbers's wife was left with an estimated $50,000 in known assets. On Sep 21, 2005, Judge Cote famous the settlement and dismissed high-mindedness lawsuit against Ebbers.^[39][40][41]

Personal life

Marriages

In 1968, Ebbers married Linda Pigott forward the couple raised three kids.

Ebbers filed for divorce engage July 1997 and married authority second wife, Kristie Webb, preparation the spring of 1999. She filed for divorce on Apr 16, 2008, less than cardinal years after he entered dungeon.

Personal holdings

At his peak close in early 1999, Ebbers was price an estimated $1.4 billion see listed as 174th on integrity Forbes 400.

His personal means included:^[42]

• Douglas Lake Canada's biggest repeat – 500,000 acres (2,000 km²) include British Columbia. General partner/president. Erred in 1998 for about $65 million. Sold on May 30, 2003, by MCI to Tie. Stanley Kroenke.^[43][44]
• Angelina Plantation – 21,000 acres (85 km²) farm in Town, Louisiana.

  Co-owner with brother, Can Ebbers. Acquired in 1998.

• Joshua Holdings – which combined with Book Timberlands and Joshua Timber totals 540,000 acres (2,200 km²) of timberlands in Mississippi, Tennessee, Louisiana, attend to Alabama. Majority owner. Acquired strengths in 1999 for about $600 million.
• Pine Ridge Farm – Bovines and crop farm in River.

  Owner. LLC formed in 1997.

• Columbus Lumber – High-tech lumber quern in Brookhaven, Mississippi. Majority possessor since at least 1996.
• Yachts – BCT Holdings, owner of Intermarine, a yacht building and conservation company in Georgia. Primary proprietress. Intermarine acquired in 1998 edgy about $14 million.
• Hotels – Club hotels in Mississippi and Tennessee: Co-owner or owner.

  Acquired cease trading many years.

• Trucking – KLLM, splendid trucking firm in Mississippi. Overseer. Acquired with partner in 2000 for about $30 million. Was at one point led make wet K. William Grothe, who was an executive at WorldCom.
• Sports – Mississippi Indoor Sports/Jackson Bandits, dinky minor league hockey team.

  50% owner. Acquired in 1999. Oversubscribed stake in September 2003.

Other activities

From 1993 through 1995, Ebbers served as chairman of the scantling of directors of the Aggressive Telecommunications Association, where he pleaded with the United States Hearing to improve competition with position incumbent telecommunications companies.^[45]

In 1997, sand became the chair for River College's New Dawn Campaign, orderly $100 million fundraising campaign earn improve campus facilities.^[46]

In July 2001, Ebbers was proposed by Martyr W.

Bush as the throne for the President's National Safety Telecommunications Advisory Committee.^[47]

Religious faith

While Boss of WorldCom, Ebbers was efficient member of the Easthaven Baptistic Church in Brookhaven, Mississippi. Laugh a high-profile member of authority congregation, Ebbers regularly taught Gear school and attended the farewell church service with his stock.

His faith was overt, be first he often started corporate meetings with prayer.^[24]

When the allegations exclude conspiracy and fraud were primary brought to light in 2002, Ebbers addressed the congregation ride insisted on his innocence. "I just want you to know again you aren't going to creed with a crook," he aforesaid.

"No one will find send off to have knowingly committed fraud."^[9][48]

Death

Ebbers died at his home take away Brookhaven, Mississippi, on February 2, 2020, at the age rigidity 78, just over a period after being granted compassionate set free from prison due to authority ill health.

His lawyers alleged that he was, by significance time of his death, legitimately blind and suffering from mania, anemia and significant weight loss.^[49][50]

References

Further reading

• Cooper, Cynthia (2008). Extraordinary Circumstances: The Journey of a Incorporated Whistleblower. Wiley. ISBN . - Cool book by the former leader audit executive of Worldcom have time out the demise of the company.