Course:MGMT405 2020W2/WorldCom

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WorldCom Scandal

WorldCom is a former telecommunications company. The company was founded in 1983 and operated out of in Clinton, Mississippi.[1][2] At its peak, WorldCom was the second largest long-distance telephone company in the USA.[3][4] WorldCom's growth is largely credited to the acquisition of several other companies in the industry; notably, MCI Communications was acquired by the telecommunications giant in 1998.[5]

WorldCom
Industry Telecommunications
Founded 1983; in Hattiesburg, Mississippi, U.S.[5]
Defunct 2006 (bankruptcy)[5]
Headquarters Clinton, Mississippi, U.S.[2]
Service Areas Consumers, businesses

and governmental agencies[3]

Ticker Symbol TSX: WCOM (until 2002)[6]

NYSE: WCOM (until 2002)[6]

Background

In 2002, a major accounting scandal occurred involving one of the largest and most well-known telecommunications companies, WorldCom. WorldCom was previously the second-largest phone company in the United States and competed on the New York Stock Exchange. It is said that WorldCom's accounting records were being incorrectly reported throughout the years of operation by top-level management.[7] In this accounting scandal, it was discovered that management was pressuring lower-level employees to improperly inflate various aspects of the company's financial data.[8] WorldCom manipulated accounting records by reporting expenses as capital investments. The falsely recorded reserve accounts were used to offset losses that were incurred throughout the years 1999-2002. The company used their set-aside reserves to pay customer accounts that were deemed uncollectible throughout their business operations. This fraudulent reporting ultimately allowed WorldCom the opportunity to report lower expenses throughout the years as a way to drastically inflate profits, as well as create artificially high stock-prices, which led to the investigation by the U.S Securities and Exchange Commissions.[9] [10][11]

This fraudulent reporting ultimately overstated the company's 2002 profits by more than $3 billion.[7] In 2002, the company declared bankruptcy after $11 billion of fraud and manipulation was uncovered. Later, charges including securities fraud, conspiracy, and filing false statements were issued.[5] The bankruptcy and fraud impacted employees, along with millions of individuals who invested in WorldCom throughout the years, including retirement plans.[8] WorldCom was recognized as "perhaps the largest accounting fraud in history, with the company's income overstated by an estimated $11 billion ... and the loss to shareholders estimated at as much as $200 billion".[11]

Timeline

1983

  • The idea for a long-distance telecommunications service was created by four highly reputable and intelligent men, Bernie Ebbers, Bill Fields, Murray Waldron, and David Singleton.[5]
  • After multiple meetings, the company Long Distance Discount Service, known as LDDS, was created.
  • The new and evolving company focused on providing individuals with discounted telecommunication services.[5]

1984

  • One year later, the University of Southern Mississippi was the first customer to buy the services that were being offered by LDDS.[12]

1985-1995

  • LDDS worked to acquire companies located all across the United States of America as a way to expand their business.
  • During this time, LDDS acquired the company previously known as William Telecommunication Group Inc.[5][12]
    • The new purchase allowed LDDS the opportunity to diversify into offering a new service of voice and data transmission.
  • Wiltel was acquired by LDDS for approximately 2 billion dollars.
  • After acquiring multiple multinational telecommunication businesses, LDDS formally became WorldCom.[5][12]

1997-1998

  • WorldCom made one of the largest known mergers in history by acquiring MCI Communications Corporation.
  • During this time, WorldCom went on to merge with two other highly lucrative companies known as CompuServe Corporation and Brooks Fiber Properties Incorporated.
  • In total, WorldCom purchased all three companies for approximately 42.5 billion dollars.[5][12]

1999 - 2002

  • WorldCom had a reputation for being a highly profitable company and continued to compete on the New York Stock Exchange.
  • WorldCom was known for paying high dividends to their shareholders; the company was portrayed as being a very lucrative on the Stock Exchange.[5][12]
  • WorldCom was set to merge with Sprint for approximately $100 billion. Later that year, the merger was cancelled and the WorldCom investigation began.
  • WorldCom stocks began to plummet and this led to investors becoming concerned with the company.[12]
  • After the failed merger, the founder Bernard Ebbers resigned from being CEO and sold his portion of WorldCom as a way to re-pay various loans that were outstanding. [5][12]
  • The vacant CEO position was soon filled by John Sidgmore.
  • Employees were laid off as a way to deal with the economic perils of the company.[5][12]
  • Internal accounting fraud increased the company's profits by $3 billion, while the stocks were worth almost nothing.
  • The increasing revenue and the drastic decrease in stocks led to the involvement of the United States Securities and Exchange Commission (SEC).[5][12]
  • WorldCom went under investigation and was later charged with fraud.[5][12]
  • Bernard Ebbers was charged for the involvement in the WorldCom accounting scandal.
  • The CFO, Scott Sullivan and the controller, David Meyers, were also charged with fraud and sentenced to prison.[5][12] Others involved included employees from WorldCom's accounting division.[13]

Key Players

Scott Sullivan

As WorldCom’s deception began to unravel, the company’s acting CEO, John Sidgmore, placed blame on both Scott Sullivan, former Chief Financial Officer and former controller, David F. Meyers.[7]

Scott Sullivan's career began at KPMG as an auditor. He graduated Oswego State University in 1983 and entered the telecommunications industry in 1987.[14] Sullivan worked as the treasurer of a Florida-based company, Advanced Telecommunications. It was not until after WorldCom purchased Advanced Telecommunications that Sullivan and former CEO of WorldCom, Bernard Ebbers, began their business partnership.[14] Sullivan worked at WorldCom as a finance director, and was given the title of CFO in 1994. As CFO, Sullivan was responsible for overseeing the company’s accrual accounting methods.[15] Sullivan is thought to have been the primary developer of the deceptive accounting strategies used by WorldCom, including the allocation of operating expenses as capital investments.[16] Sullivan's primary responsibilities in his role included ensuring acquisitions were successful and created high-earnings, thus allowing WorldCom to purchase more companies and continue to conquer the industry.[14] While Sullivan’s actions were no-doubt done through his own free-will, there was a heavy influence from his long-time co-worker and mentor, Bernard Ebbers.

Bernard Ebbers, CEO of WorldCom 1985 - 2002

Bernard Ebbers

Also heavily involved in these wrongdoings was Bernard Ebbers, former CEO of WorldCom. Known as the "telecom cowboy", Ebbers was one of the founders of the telecommunications company in 1983, and acted as CEO until he resigned in April 2002.[17][18]

In his earlier years, Ebbers moved from Edmonton, Alberta to attend Mississippi College on a basketball scholarship, earning a degree in physical education.[8] Before WorldCom (formerly LDDS) had come to fruition, Ebbers pivoted from basketball player to businessman. By 1983, Ebbers owned a small chain of successful motels. Shortly after, with the help of Bill Fields, Murray Waldron, and David Singleton, LDDS (later known as WorldCom) was born; Ebbers became the CEO two years later.[19]

During his tenure, Ebbers was responsible for signing off on financial reports and was acting director of WorldCom’s board of directors.[20] Throughout his years with the company, Ebbers accumulated a debt of more than $400 million, which WorldCom had taken on.[18] In order to secure the vast loans, Ebbers was forced to sell off his assets; these included a 164,000 acre ranch located in Douglas Lake, British Columbia and a yacht building business in Savannah, Georgia, U.S.[21] Employees have described WorldCom's culture under Ebbers' leadership as an environment where everyone was trying to live up to Ebbers's seemingly unattainable standards.[14]

Because of the pressure Bernie Ebbers placed on the employees of WorldCom, including CFO Scott Sullivan, Ebbers is arguably the person most responsible for the downfall of WorldCom. Ebbers' leadership style created a toxic culture at the telecommunications company that persuaded employees to cut corners in order meet demands. As a leader/CEO, it is Ebbers' responsibility to create goals for the company that can be reasonably achieved in an ethical way; Sullivan, for example, was one of the many employees who felt that Ebbers was not doing so.[14] Furthermore, while performing his role as CEO of WorldCom, Ebbers was also the chairman of the company's board. The concept of CEO also acting as chairman is one that is widely debated, however it cannot be argued that if one person performs both jobs, the company is denied a second, experienced individual.[22][23][24][25] In a report prepared for the US District Court (Southern New York), it was recommended that MCI Communications Corporation move forward by appointing a non-executive chairman and separating the role from management.[23] As Ebbers was in-charge of signing off on the fraudulent financial statements, it is possible that a second, equally powerful individual, may have been able to hold the CEO accountable. Instead, Ebbers approved financial statements that hid nearly $4 billion in expenses, because an employee felt it necessary to receive his approval.[16]

Arthur Andersen LLP

Arthur Andersen LLP, WorldCom's auditor

Arthur Andersen was a Chicago based, former "Big 5" accounting firm. The now defunct company has been involved in multiple accounting scandals, including WorldCom, Enron and Waste Management Inc.[26] Unlike many instances of corporate governance scandals, the fraud committed by WorldCom was relatively basic in nature. The manipulation lacked complexity, and it is reasonable to expect that an auditor would have been able to discern it.[27] For this reason, Arthur Andersen, WorldCom’s auditor at the time of the scandal, also holds responsibility as a result of their gross oversight. Specifically, Kenneth M. Avery and Melvin Dick were the auditors responsible for representing the client in question.[28][29] After the SEC began to investigate WorldCom and its accounting practices, the telecommunications company appointed KPMG as its new auditor.[29]

Key Stakeholders

Shareholders

The largest stakeholder group affected in in WorldCom’s demise were it's shareholders. In the time leading up to the company’s downfall, there were approximately 2.96 billion shares outstanding.[30]  After being penalized to the tune of $500 million by the Securities and Exchange Commission, $490 million was handed back to the shareholders. However, this was merely a drop in the bucket of the estimated $175 billion lost by investors in the value of WorldCom’s stocks and bonds. At the time, this equated to only 17 cents per share of a stock that was once trading as high as $64.50.[31] In the coming years, investors would bring in an additional $6.13 billion worth of restitution from various shareholder suits against the investment banks that had propped up WorldCom, several former board members, and auditors Arthur Anderson.[32]

Employees

In June of 2002, shortly preceding the company’s bankruptcy filing, WorldCom laid off one-fifth of its workforce; 17,000 employees from many different departments were left without work.[16] These layoffs would continue throughout their downfall. However, after emerging from bankruptcy in 2004, as many as 60% of WorldCom’s pre-scandal workers were still employed by MCI.[32] Most of those that were lucky enough to keep their positions lost a considerable amount in the form of retirement savings. It was common practice among WorldCom’s loyal workforce to invest their earnings in the company’s stock for their 401(k) retirement accounts. Most employees were also offered stock options as part of their compensation. As the value of the company’s stock dropped, some employees watched over $50,000 of their savings evaporate.[32] Others lost considerably more, seeing nearly their entire net worth disappear. Collectively, employees lost $4 billion that they had invested in the company's stock.[33]

Creditors

By the time WorldCom filed for bankruptcy protection, America’s second-largest telecom company had amassed a debt of $41 billion owed to various creditors. At the time, it was the largest bankruptcy in US history, yet the company was able to strip itself of much of its debt. After negotiations and multiple reorganization plans with creditor groups, the company miraculously reduced its debt to just $5 billion in September of 2003.[34] This new deal was reached out of court, though not without significant settlements. One small creditor group with significant stake in the company would have been all but wiped out if it were to never see the money it was owed. Instead, it was renegotiated that the group would receive 44.5 cents on the dollar for the money it loaned to WorldCom. Another small player that was previously set to receive 36 cents, later saw a return of 52.7 cents instead. In addition, $188 million in and cash and $165 million in new debt was paid to the owners of some $750 million in debt securities issued by WorldCom before its bankruptcy filing. This settlement also came to only 44.5 cents on the dollar.[35]

Auditors

Auditors Arthur Andersen LLP failed to uncover WorldCom's capitalization of expenses; this was a large oversight that the firm should not have had difficulty exposing. Nevertheless, the firm was convicted of wrongdoing in the Enron case just days before the scandal at WorldCom broke.[36] By the time their negligence had fully come to light, there was essentially nothing left of the firm to punish, and thus were not severely impacted by the WorldCom scandal directly. That certainly did not stop successive CEO John Sidgmore, among other executives, to place blame on their external auditors.[37] Shareholders agreed, questioning how it could be that Arthur Andersen failed to bring the issue to the public's attention.[38] They launched a lawsuit against the firm, which ended with Arthur Andersen paying $65 million to investors. Additionally, they were required to pay 20% of any amounts distributed to present and former partners going forward.[39]

Current Trial Status

Scott Sullivan

The former CFO, Scott Sullivan, received 5 years in jail after he entered a guilty plea and was sentenced to five years in prison as part of a plea agreement in which Sullivan testified against former WorldCom CEO Bernard Ebbers.[11][40] Sullivan was also charged by the U.S. Securities and Exchange Commission (SEC) and received a permanent ban from serving as an officer and director of a public company, and permanent suspension from practicing as an accountant before the commission.[41] Sullivan was charged for engaging in fraudulent scheme to conceal WorldCom's poor financial performance. He made numerous false and misleading statements about WorldCom's financial position and signed SEC filings that contained false and misleading information. Adjustments to the financial statements were fraudulently performed with the purpose of falsely increasing WorldCom's reported income and decreasing their expenses.

Bernard Ebbers

Despite repeatedly denying any charges against him, Bernard Ebbers, the founder and former CEO of WorldCom, was found guilty for fraud, conspiracy and filing false documents with regulators in March of 2005.[42] His initial sentencing carried up to 85 years in prison but was later sentenced to 25 years.[17][43]

“Today's plea by WorldCom’s former CFO, Mr. Sullivan, and the indictment of its former CEO, Mr. Ebbers, are important events in the history of securities enforcement. I am proud of the part our staff played in making these developments possible. No matter how high executives climb on the corporate ladder, they will never be above the law.” - SEC Enforcement Division Director, Stephen M. Cutler, 2004[44]

Arthur Andersen

WorldCom Investors also sued the auditing firm, Arthur Andersen, for breaking numerous security laws and failing to protect the shareholders from the company's collapse in 2002.[45] Arthur Andersen was the last remaining defendant in the WorldCom Case after they reached an agreement to pay $65 million to resolve the class-action lawsuit filed by WorldCom's investors. It was determined that the auditing firm was aware that the accounting practices being performed by WorldCom were improper and did not comply with GAAP and GAAS. They actively disregarded the fraudulent activity and falsely stated that they had properly audited the Company's 2001 balance sheet and that in their opinion the information was "presented fairly". [46]

David Meyers

In 2005, David Meyers, ex-controller at WorldCom, was sentenced to one year and a day in prison. Meyers was one of five former executives who agreed to aid prosecutors to implicate former CEO, Bernie Ebbers.[13]

WorldCom Accounting Department

In 2002, former WorldCom accountants Betty L. Vinson, Troy M. Normand, and Buford Yates Jr., each pleaded guilty to securities fraud and conspiracy.[13] Yates, former accounting chief, was sentenced to one year and a day in prison. [2] Vinson was sentenced to five months imprisonment and five months of home detention.[13] [47] [48] Normand received probation.[13][49]

Aftermath

Verizon Communications acquired MCI Inc. in 2006

WorldCom re-emerged under the new name of MCI after declaring bankruptcy in 2002. They were soon acquired and are now a part of Verizon. WorldCom, renamed MCI, was acquired by Verizon Communications in January 2006.[3]

After serving four years in prison, Sullivan was released from jail in August 2009 and was sentenced to a mandatory home confinement for an additional three years. [50]

In 2019, Bernard's health was drastically declining and he was diagnosed with various medical ailments while incarcerated.[8]

Bernard's daughter filed a request to the Texas Federal Prison to release Bernard early due to medical reasons.[8]

After reviewing Bernards case, prosecutors did not approve him for early release from prison.[8]

Bernard Ebbers passed away in 2020 after being released from prison earlier than his initial sentence due to deteriorating health. [8][51]

Trivia

Media Depiction

In 2012, CNBC aired an episode of popular television series "American Greed", depicting the events of the WorldCom scandal, specifically highlighting Bernard Ebbers.[52]

WorldCom was also featured in a podcast episode of "Fraudcast", which aired in 2019.[53] Upon the death of Bernie Ebbers, an episode of the "Daily Compliance News" podcast reported his death and recounted his fraudulent history.[54]

Douglas Lake Ranch

Throughout Worldcom’s explosive rise to the forefront of the US telecommunications industry, Bernard Ebbers enjoyed a life of luxury afforded only by the extreme upper echelons of society. Perhaps his most extravagant investment was the purchase of Canada’s largest piece of continuous, privately owned land.  In July of 1998 Ebbers acquired the 494,000 acre Douglas Lake Ranch of British Columbia, located South of Kamloops and just East of Merritt in the Nicola Valley.[55][56] After defaulting on his bank loans against Worldcom stock, Ebbers’ assets fell into the hands of then renamed MCI, the ranch included. In June of 2003, MCI sold the ranch to American billionaire Stanley Kroenke for $68.5 million – a valuation of $139 per acre. Kroenke is known for his extensive real-estate and ranching interests, marriage to Wal-Mart heiress Ann Walton and ownership of the Denver Nuggets and Colorado Avalanche.[57]

March of 2021 brought the ranch into the forefront of attention when the Supreme Court of British Columbia overturned a previous ruling regarding public access to two lakes on the property. The province ruled that the waters of Stoney Lake and Minnie Lake, though publicly owned, could no longer be publicly accessed as some portions of the roads and trails approaching the lakes cross private land. This, despite the fact that public money has been spent on the improvement of the roads.[58] The latest in a many years-long dispute between the Douglas Lake Cattle Company and the Nicola Valley Fish and Game Club could have implications reaching far beyond these two pristine trout fishing lakes. Critics worry that this decision may set a precedent throughout the province and even the country that the public’s ability to use crown lands will be severely limited by private ownership or commercial rights to the roads and trails that provide access to them.[59]

Sources

  1. ↑ "The WorldCom- Wall Street Connection". PBS. 2003. Retrieved March 17th, 2021. Check date values in: |access-date= (help)
  2. ↑ 2.0 2.1 2.2 "WorldCom And The Mystery Of Buford Yates". Forbes. August 29, 2002. Retrieved March 24, 2021.
  3. ↑ 3.0 3.1 3.2 "WorldCom is now a part of Verizon". Verizon. Retrieved March 16, 2021.
  4. ↑ "Top 10 Crooked CEOs". TIME. Retrieved March 22, 2021.
  5. ↑ 5.00 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 5.09 5.10 5.11 5.12 5.13 5.14 "Chronology of Events at WorldCom". The New York Times. March 15, 2005. Retrieved March 15th, 2021. Check date values in: |access-date= (help)
  6. ↑ 6.0 6.1 Douglass, Elizabeth (June 8, 2001). "WorldCom to Split Into 2 Stocks". Los Angeles Times. Retrieved March 24, 2021.
  7. ↑ 7.0 7.1 7.2 Tran, Mark (August 9, 2002). "WorlCom accounting scandal". The Guardian. Retrieved March 17, 2021.
  8. ↑ 8.0 8.1 8.2 8.3 8.4 8.5 8.6 "Bernard Ebbers, ex-CEO convicted in WorldCom scandal, dies". CNBC. February 2, 2020. Retrieved March 11, 2021.
  9. ↑ WorldCom Inc. Securities Litigation
  10. ↑ "Accounting 101 at WorldCom". Chicago Tribune. June 29, 2002. Retrieved March 15, 2021.
  11. ↑ 11.0 11.1 11.2 U.S. Securities and Exchange Commission. “SEC v. WorldCom”
  12. ↑ 12.00 12.01 12.02 12.03 12.04 12.05 12.06 12.07 12.08 12.09 12.10 "Timeline of the history of WorldCom". August 18, 2002. Retrieved March 23, 2021.
  13. ↑ 13.0 13.1 13.2 13.3 13.4 "Ex-WorldCom Controller Sentenced to One Year". The New York Times. August 11, 2005. Retrieved March 13, 2021.
  14. ↑ 14.0 14.1 14.2 14.3 14.4 Kirchgaessner, Stephanie (July 6, 2002). "WorldCom's Sullivan 'sold his soul to the devil'". The Irish Times. Retrieved March 22, 2021.
  15. ↑ Kennon, Joshua (May 28, 2020). "The Worldcom Scandal Explained". The Balance. Retrieved March 10th, 2021. Check date values in: |access-date= (help)
  16. ↑ 16.0 16.1 16.2 Romero, Simon; Berenson, Alex (June 26, 2002). "WorldCom Says It Hid Expenses, Inflating Cash Flow $3.8 Billion". The New York Times. Retrieved March 15, 2020.
  17. ↑ 17.0 17.1 Twenge, Jean M.; Campbell, W. Keith (2009). The Narcissism Epidemic. Simon & Schuster. p. 204. ISBN 9781416576259.
  18. ↑ 18.0 18.1 Seelye, Katharine Q.; Victor, Daniel (February 3, 2020). "Bernard J. Ebbers, WorldCom Chief Jailed in Fraud, Dies at 78". The New York Times. Retrieved March 26, 2021.
  19. ↑ Reuters, Thomas (February 3, 2020). "Bernie Ebbers, CEO of bankrupt telecom fraud WorldCom, dead at 78". CBC News. Retrieved March 14th, 2021. Check date values in: |access-date= (help)
  20. ↑ U.S. Securities and Exchange Commission. “SEC v. Ebbers” July, 2005
  21. ↑ Sandberg, Jared (April 12, 2002). "Bernie Ebbers Bet the Ranch -- Really -- on WorldCom Stock". The Wall Street Journal. Retrieved March 16, 2021.
  22. ↑ Mandato, Joseph; Devine, William (March 4, 2020). "Why the CEO Shouldn't Also Be the Board Chair". Harvard Business Review. Retrieved March 22, 2021.
  23. ↑ 23.0 23.1 "Restoring Trust: Corporate Governance for the future of MCI" August, 2003
  24. ↑ Brown, Jim (2006). The Imperfect Board Member. Jossey-Bass. ISBN 0787986100.
  25. ↑ Ebl, Tamara (March 1, 2021) MGMT 405: Advanced Managerial Accounting Lecture UBC
  26. ↑ McRoberts, Flynn (September 1, 2002). "The fall of Andersen". Chicago Tribune. Retrieved March 20, 2021.
  27. ↑ "What Went Wrong at WorldCom?". Knowledge@Wharton. July 3, 2002. Retrieved March 22, 2021.
  28. ↑ "Arthur Andersen auditors barred". Los Angeles Times. April 15, 2008. Retrieved March 15, 2021.
  29. ↑ 29.0 29.1 Van, John; Alexander, Delroy (June 26, 2002). "Andersen was WorldCom auditor". Chicago Tribune. Retrieved March 14, 2021.
  30. ↑ "Profile - WorldCom Group (NasdaqNM:WCOM)". Yahoo! Finance. June 30, 2001. Retrieved March 22, 2021.
  31. ↑ Knight, Jerry (May 26, 2003). "WorldCom Stockholders Owe SEC Thanks for Almost Nothing". The Washington Post. Retrieved March 10, 2021.
  32. ↑ 32.0 32.1 32.2 "MCI deal won't help bitter WorldCom stockholders". The Baltimore Sun. May 3, 2005. Retrieved March 12, 2021.
  33. ↑ Joyce, Amy; Noguchi, Yuki (March 4, 2004). "WorldCom staff who lost their jobs cheer at indictment". The Seattle Times. Retrieved March 26, 2021.
  34. ↑ Blumenstein, Rebecca; Young, Shawn (April 14, 2003). "WorldCom Creditors Back Plan To Reorganize in Bankruptcy". The Wall Street Journal. Retrieved March 26, 2021.
  35. ↑ "WorldCom, Creditors in Accord". Los Angeles Times. September 10, 2003. Retrieved March 26, 2021.
  36. ↑ Eichenwald, Kurt (2005). Conspiracy of Fools. Broadway Books. ISBN 0767911792.
  37. ↑ Ulick, Jake (July 8, 2002). "WorldCom CEO slaps Arthur Andersen". CNN. Retrieved March 27, 2021.
  38. ↑ Parker, Andrew (April 25, 2005). "Andersen settles with WorldCom investors". Financial Times. Retrieved March 27, 2021.
  39. ↑ Williams, Timothy (April 25, 2005). "Andersen to Settle WorldCom Lawsuit". The New York Times. Retrieved March 27, 2021.
  40. ↑ FBI. “U.S. Charges Ex-WorldCom CEO Bernard Ebbers.” March 24, 2004
  41. ↑ https://www.sec.gov/news/press/2004-25.htm
  42. ↑ Tran, Mark (March 15, 2005). "Ebbers found guilty in WorldCom trial". The Guardian. Retrieved March 16th, 2021. Check date values in: |access-date= (help)
  43. ↑ "Lies, Damned Lies And Scott Sullivan". Forbes. February 17, 2005. Retrieved March 24, 2021.
  44. ↑ "SEC Charges Scott D. Sullivan, WorldCom's Former Chief Financial Officer, with Engaging in Multi-Billion Dollar Financial Fraud". U.S. Securities and Exchange. March 2, 2004.
  45. ↑ "Arthur Andersen settles WorldCom lawsuit". CBC. April 26, 2005. Retrieved March 18th, 2021. Check date values in: |access-date= (help)
  46. ↑ Stanford Law School Case Summary- Arthur Andersen, LLP : WorldCom, Inc. Securities Litigation
  47. ↑ U.S. Securities and Exchange Commission. “SEC v. Vinson”
  48. ↑ U.S. Securities and Exchange Commission. “Administrative Proceeding in the Matter of Betty L. Vinson, CPA"
  49. ↑ U.S. Securities and Exchange Commission. “SEC v. Vinson & Normand”
  50. ↑ "Former WorldCom CFO Scott Sullivan Completes Sentence". Securities Docket. August 3, 2009. Retrieved March 20, 2021.
  51. ↑ Zarroli, Jim (February 3, 2020). "Bernard Ebbers, Telecom CEO Sent To Prison In Accounting Scandal, Dies". NPR. Retrieved March 19, 2021.
  52. ↑ "American Greed: Inside the WorldCom Scandal". CNBC. October 14th, 2012. Retrieved March 18th, 2021. Check date values in: |access-date=, |date= (help)
  53. ↑ Fraudcast: Episode 9 - Bernie Ebbers & WorldCo‪m‬ , March 2, 2019
  54. ↑ Daily Compliance News: The Farewell to a Telecom Cowboy Edition
  55. ↑ "Douglas Lake Ranch". Douglas Lake. Retrieved March 25, 2021.
  56. ↑ Waldie, Paul (November 12, 2002). "Bidders line up for huge Ebbers ranch". The Globe and Mail. Retrieved March 25, 2021.
  57. ↑ Hart, Robert (June 5, 2003). "Bernie Sells The Farm". Forbes. Retrieved March 25, 2021.
  58. ↑ Potenteau, Doyle (March 5, 2021). "B.C. cattle company wins appeal; ranch entitled to restrict public access to 2 lakes near Merritt". Global News. Retrieved March 25, 2021.
  59. ↑ "Court rules 2 B.C. lakes cannot be publicly accessed, siding with Canada's largest cattle ranch". CBC News. March 5, 2021. Retrieved March 25, 2021.
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