Worldcom

WorldCom Scandal

By WorldCom_Group
  • LDDS (Long Distance Discount Service), later kown as WorldCom Inc. was founded.

    LDDS (Long Distance Discount Service), later kown as WorldCom Inc. was founded.

    Businessmen Murray Waldron and William Rector were the founders
  • Bernard Ebbers becomes CEO of LDDS

    Bernard Ebbers becomes CEO of LDDS

  • LDDS becomes public

    This happens through the acquisition of Advantage Companies Inc.
  • LDDS changes name to WorldCom Inc.

    LDDS changes name to WorldCom Inc.

    LDDS acquires voice and data transmission company Williams Telecommunications Group Inc. for $2.5 billion, leading to the name change

  • U.S. Securities and Exchange Comission contacts WorldCom

    WorldCom receives a request from the SEC relating to accounting procedures and loans to officers

  • Bernard Ebbers resigns

    Vice Chairman John Sidgmore takes over company

  • Buford Yates Jr. (accounting director) convicted

    2 counts of securities fraud and conspiracy

  • WorldCom exits wireless resale business

  • Scott Sullivan (CFO) is fired

    Scott Sullivan is fired for improper accounting of $3.8 billion in expenses covering up for a net loss for 2001 and first quarter of 2002.

  • WorldCom discovers questionable accounting practices stretching back as far as 1999

  • WorldCom files for bankruptcy protection

    Sidgmore palns to emerge from bankruptcy in roughly 9 to 12 months. Company listed $107 billion in assets and $41 billion in debt.

  • Scott Sullivan and David Myers are arrested for their role in the scandal.

    they were accused of securities fraud and filing false statements with the SEC

  • David F. Myers (Controller) convicted

    3 counts of conspiracy, securities fraud and making false statements to SEC

  • Betty L. Vinson and M. Normand (Finance Officials) convicted

    2 counts of conspiracy, and securities fraud. They were convicted seperatly.

  • Scott Sullivan pleads not guilty

    claims not guilty on charges of securities and bank fraud

  • WorldCom settles SEC charges from its accounting irregularities

  • Bernard Ebbers pleads not guilty

    claims that he is not guilty of the charges that he violated Oklahoma fraud and securities laws.

  • WorldCom's reorganization plan is approved by Bankruptcy court

  • Ebbers found guilty by a federal jury

    found guilty of fraud, conspiracy and filing false documents with regulators. He is given up to 85 years in prison.

  • Bernard Ebbers is officially sentenced