Bernard Ebbers Wept Openly At The Front Of A Manhattan Courtroom After Judge Sentenced Him To A 25-Year Prison

yahoo.com, Jul 14, 2005

NEW YORK -- Bernard Ebbers wept openly at the front of a Manhattan courtroom yesterday, after Judge Barbara Jones impassively sentenced him to a 25-year prison term that she noted was, "likely to be a life sentence" for the 63-year-old Edmonton-born former CEO of WorldCom Inc.At the conclusion of a two-hour sentencing hearing in which his lead counsel Reid Weingarten also cried while appealing for the court to have mercy on the disgraced telecommunications captain because of a debilitating heart condition and a track record of charitable activities, Mr. Ebbers and his wife Kristie embraced and wept quietly together.They later slipped out a back door and marched briskly to a waiting car without offering comment. Mr. Ebbers was ordered to report to prison on Oct. 12, likely in Yazoo City, Miss., not far from his current home in Clinton, Miss.But Mr. Weingarten vowed that the world had not yet heard the last from Mr. Ebbers, despite the fact that his legal team was this week denied an application for a new trial."We can't wait to appeal this trial," he said, appearing quietly defeated during a brief scrum in front of the courthouse steps. "During this trial, Bernie Ebbers was transformed into this distorted picture of corporate corruption," he said, adding that the former CEO he had known for years was in fact a man of "unbelievable kindness."After applications from both prosecutor David Anders and Mr. Weingarten, which are due within the next three weeks, Judge Jones will decide whether Mr. Ebbers can remain free on bail while his legal team pursues an appeal.A federal jury found Mr. Ebbers guilty in March of nine counts, helping to orchestrate the largest fraud in U.S. corporate history, which took $11-billion (U.S.) out of the WorldCom coffers, propelling it into bankruptcy and erasing $180-billion from its market value. Mr. Ebbers' deputy, chief financial officer Scott Sullivan, who oversaw the scam that grossly inflated revenue and made billions in quarterly expenditures appear as capital costs, testified against the CEO in return for a reduced sentence. He has yet to be sentenced.Yesterday's hearing began with a forceful victim impact statement delivered by Henry Bruen, a 47-year-old former star salesman of WorldCom who joined the company in January, 2000, as a national accounts manager in Manhattan. After building his accounts from scratch and earning up to $180,000 in annual salary and a bonus that was paid out in WorldCom stock later rendered worthless, Mr. Bruen was laid off in late 2002.He said he has been unable to find a new sales job because of the stigma associated with being a former WorldCom employee, and has moved back in with his elderly parents."Where do I go to get my life savings back, or my career reinvigorated? How am I compensated for the loss of my retirement security funds?" Mr. Bruen asked. He declared that Mr. Ebbers deserved a long sentence because, "he can never repay me or the tens of thousands of people like me whose lives disintegrated before them in the blink of an eye."

In fact, Mr. Ebbers has nothing left with which to repay former investors. Two weeks ago, he reached a restitution deal worth roughly $40-million with the federal prosecutor in Manhattan and Alan Hevesi, the New York State comptroller and head of the state's Common Retirement Fund, that will see essentially all of his assets sold and leave his wife with only a very modest home and retirement account.Mr. Ebbers' lawyers spent almost two hours ticking off the reasons he should receive less than 30 years, the minimum sentence required under federal guidelines for his crimes. After arguing that it was impossible to determine a reasonable estimate of the loss suffered by investors as a direct result of Mr. Ebbers' fraud -- an argument rejected by the judge, who declared that it was only necessary to determine that he was responsible for at least $100-million of the losses in order for her to apply the maximum sentence -- his lawyers suggested mitigating circumstances justified a lesser sentence.They pointed out Mr. Ebbers' heart condition, which they feared might not be treated properly in a federal prison, and his years of charitable works, including funding an orphanage and educational programs for underprivileged children. Appearing jittery and off-balance, which provided an unsettling contrast to his smooth courtroom demeanour throughout the trial, Mr. Weingarten said his client had given more than $100-million in charity, usually anonymously, and that often a child in need would benefit from "an angel" delivering help from above."That angel was Bernard Ebbers," he declared. "Doesn't that count? Doesn't that count on this day?" In the last row of the courtroom, a former WorldCom investor whispered: "Hell, no."8 days: Time jurors spent deliberating before convicting Mr. Ebbers in March of securities fraud, conspiracy and seven counts of filling false reports with regulators.30 years: Jail time Mr. Ebbers' conviction pointed to under U.S. federal sentencing guidelines, which a Supreme Court ruling last year declared non-binding.$50,000: The amount Mr. Ebbers' wife, Kristie, is left with, not including a home in Jackson, Miss., after a civil settlement reached on Monday.$11-billion: The amount by which Mr. Ebbers was accused of inflating the company's profit - the largest corporate fraud in United States history.Oct. 12: The date the judge ordered Mr. Ebbers to report to prison. The judge said she would recommend that he be sent to a facility in Yazoo City, Miss.$40-million: Value of personal assets Mr. Ebbers agreed to give investors, including his lavish family home in Brookhaven, Miss., and various businesses. His assets once topped $1-billion.