On July 21, 2002, WorldCom, one of the nations leading companies in Telecommunications, filed for bankruptcy and exposed an $11-billion-dollar fraud, making it one of the largest in all time. Spearheading the scandal were six employees, Bernard Ebbers the CEO, Scott Sullivan the CFO, David Myers the accounting controller, Buddy Yates the Accounting Director, and Betty Vinson and Troy Norman the accountants. The scandal went to federal trial, and after six days of jury deliberation, all six of the employees that were part of the scandal were found guilty. Bernard Ebbers was found guilty of Securities fraud, conspiracy and sentenced to 25 years in Oakdale Federal Correctional Institution where he resides to this day. Scott Sullivan was found
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First, there would be no way a CEO of a company would be blind to the actions that are going on within it, especially for the two years the fraud took place. Throughout the book, it is show how meticulous Bernie was with his money, from cutting the MCI expenses after the acquisition to cutting coffee at world com to save $4 million dollars. It’s highly unlikely that Bernie would not know about the fraud if he is so meticulous about cutting unneeded spending and the costs of small items such as coffee. Scott also often told the prosecution how he went to Bernie about the fraudulent adjustments and Bernie repeatedly told him to “hit the numbers for the quarter.” Next, Bernie should have the knowledge to comprehend the financial information that goes on in throughout the company, so it is wrong to say that Bernie could not understand the fraudulent adjustments if Scott brought them to him. At one point in the book, Bernie had no knowledge of what the internal Audit did, so, Cynthia taught Bernie how the department worked and operated. Also Bernie probably would not have been able to create such a successful company if he had no comprehension of how it …show more content…
Ebbers vs. the United States of America, if I were Judge Barbara Jones, I would rule that Bernard J. Ebbers is not guilty for the charge of fraud for the WorldCom case. The reasoning for this decision lies on the lack of evidence and witnesses to that actions stated by Scott and David. Emails that Scott and David received and sent to each other did not have any connection to Bernie, nor was Bernie tagged in them allowing him to see what was going on. Along with there not being any witnesses to the conversations between Scott and Bernie, the accountants, Betty and Troy, also testified that the alleged conversations between them and Bernie never happened. Personally, I feel that it is wrong to convict someone if there is no actual evidence that connects them to the crime committed, especially if the only evidence is some testimonies from two employees looking to get a reduced sentence in anyway
First, there would be no way a CEO of a company would be blind to the actions that are going on within it, especially for the two years the fraud took place. Throughout the book, it is show how meticulous Bernie was with his money, from cutting the MCI expenses after the acquisition to cutting coffee at world com to save $4 million dollars. It’s highly unlikely that Bernie would not know about the fraud if he is so meticulous about cutting unneeded spending and the costs of small items such as coffee. Scott also often told the prosecution how he went to Bernie about the fraudulent adjustments and Bernie repeatedly told him to “hit the numbers for the quarter.” Next, Bernie should have the knowledge to comprehend the financial information that goes on in throughout the company, so it is wrong to say that Bernie could not understand the fraudulent adjustments if Scott brought them to him. At one point in the book, Bernie had no knowledge of what the internal Audit did, so, Cynthia taught Bernie how the department worked and operated. Also Bernie probably would not have been able to create such a successful company if he had no comprehension of how it …show more content…
Ebbers vs. the United States of America, if I were Judge Barbara Jones, I would rule that Bernard J. Ebbers is not guilty for the charge of fraud for the WorldCom case. The reasoning for this decision lies on the lack of evidence and witnesses to that actions stated by Scott and David. Emails that Scott and David received and sent to each other did not have any connection to Bernie, nor was Bernie tagged in them allowing him to see what was going on. Along with there not being any witnesses to the conversations between Scott and Bernie, the accountants, Betty and Troy, also testified that the alleged conversations between them and Bernie never happened. Personally, I feel that it is wrong to convict someone if there is no actual evidence that connects them to the crime committed, especially if the only evidence is some testimonies from two employees looking to get a reduced sentence in anyway