Posted on 06/30/2005 8:52:16 AM PDT by zarf
NEW YORK (AP) -- Former WorldCom chief Bernard Ebbers will pay $5 million and transfer nearly all his assets into a liquidation trust to settle civil charges related to the company's accounting fraud, the government said Thursday.
Federal prosecutors said the trust, which would sell off Ebbers' assets, would be worth up to $40 million. As a result, prosecutors said they would not seek restitution when Ebbers is sentenced July 13.
The settlement springs from a class-action suit brought by investors against former WorldCom executives and board members, plus investment banks that underwrote WorldCom securities and auditing firm Arthur Andersen.
Earlier this year, the banks agreed to pay more than $6 billion to settle the lawsuit, and former WorldCom directors agreed to pay nearly $25 million out of their own pockets. Arthur Andersen paid $65 million.
Ebbers was convicted of fraud and conspiracy in the $11 billion accounting-fraud collapse of WorldCom in 2002. Prosecutors are seeking to put Ebbers behind bars for the rest of his life.
The settlement is still subject to approval by a federal judge.
In addition to the immediate cash payment, Ebbers must sell his multi-million-dollar home in Clinton, Miss., which he and his family must leave by Oct. 31, prosecutors said. He must also sell his interest in a number of businesses, including a trucking company, a golf course, a rice farm and a lumber company, the government said.
Ebbers will be required to forfeit all his remaining cash in the settlement, except for money for legal bills and what prosecutors described as a "modest living allowance" for his wife, Kristie.
Prosecutors said 75 percent of the proceeds from the sales would go to the investors who brought the class-action suit. The remaining 25 percent will go to MCI Inc., the after-bankruptcy version of WorldCom.
And I wonder exactly what that would be.
He wasn't satisfied with being a millionaire, he had to have more and more and more and now he won't get a job washing cars in front of WalMart. Pride comes before the fall, he was supposed to be a Christian.
I hope he won't get out of jail.
Missippi ping
NEW YORK -- U.S. federal prosecutors have asked a judge to impose what amounts to a life sentence for former WorldCom Inc. chief executive officer Bernard Ebbers, convicted earlier this year in the company's $11-billion (U.S.) accounting fraud.
In sentencing papers filed with a federal judge, the government noted federal probation officers have recommended a life sentence, based on sentencing guidelines, for Edmonton-born Mr. Ebbers.
http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050629/IBEBBERS29/TPBusiness/International
I hope he won't get out of jail.
NEW YORK -- U.S. federal prosecutors have asked a judge to impose what amounts to a life sentence for former WorldCom Inc. chief executive officer Bernard Ebbers, convicted earlier this year in the company's $11-billion (U.S.) accounting fraud.
In sentencing papers filed with a federal judge, the government noted federal probation officers have recommended a life sentence, based on sentencing guidelines, for Edmonton-born Mr. Ebbers.
http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050629/IBEBBERS29/TPBusiness/International
"U.S. federal prosecutors have asked a judge to impose what amounts to a life sentence for former WorldCom Inc. chief executive officer Bernard Ebbers"
Oh...GOOD!
He certainly deserves it.
Wow!
Bernie is going down HARD!
"Ebbers will be required to forfeit all his remaining cash in the settlement, except for money for legal bills and what prosecutors described as a "modest living allowance" for his wife, Kristie."
Hmmmmm....
I wonder just how old "Kristie" is?
For real. I remember a couple of years ago reading about one of these big shots whose assets were frozen except for their "modest allowance," which turned out to be something ludicrous like $25,000 a week. I don't remember the exact figure but it was something absurd like that.
MM
They live in a different world.
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