Posted on: Saturday, June 11, 2005
Ebbers begs court for leniency
| • | Citigroup agrees to pay $2B |
Advertiser News Services
NEW YORK — Former WorldCom Inc. Chairman Bernard Ebbers, who's facing life in prison for directing the largest securities fraud in U.S. history, cited his charitable works and ill health in a bid for leniency at his sentencing next month. Lawyers for Ebbers told U.S. District Judge Barbara Jones in New York yesterday to use her discretion under a U.S. Supreme Court ruling earlier this year to impose a prison term "substantially below" the life sentence recommended by a court-ordered pre-sentence investigation. Ebbers will be sentenced on July 13. He is free on bail.
Ebbers was convicted in March of nine counts of fraud, conspiracy and making false filings with regulators. The conspiracy charge carries a maximum sentence of five years in prison, while the other eight counts each carry a maximum of 10 years in prison.
WorldCom, now known as MCI Inc., committed the biggest accounting fraud in U.S. history and filed for Chapter 11 bankruptcy protection shortly after the $11 billion fraud began to come to light in 2002. It has since re-emerged from bankruptcy protection. Five former executives, including former Chief Financial Officer Scott Sullivan, have pleaded guilty to fraud-related charges and also await sentencing.
Ebbers pleaded innocent, saying the fraud was committed by his underlings, particularly Sullivan, without his knowledge. Sullivan was the prosecution's lead witness against Ebbers. Under federal sentencing guidelines, Ebbers could be sentenced to as many as 85 years in jail and even a far lighter sentence would, in effect, be a life sentence.
"Ebbers has led an exemplary life in which he has provided for his family, made extraordinary contributions to his community through his good works and other charitable deeds," defense lawyer Reid Weingarten wrote in court papers.
Ebbers also said he suffers from four heart-related illnesses, including coronary artery disease.
The defense said Ebbers didn't derive personal gain from the fraud and in fact held on to company stock that constituted most of his personal wealth until it was worthless. The defense's filing was accompanied by 169 letters of support written on his behalf by friends and beneficiaries of his charitable giving.
The prosecution has until June 24 to respond to the defense's motion.
