WorldCom Scandal

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

Jan 1, 1983

Businessmen Murray Waldron and William Rector were the founders

Bernard Ebbers becomes CEO of LDDS

Jan 1, 1985

LDDS becomes public

Jan 1, 1989

This happens through the acquisition of Advantage Companies Inc.

LDDS changes name to WorldCom Inc.

Jan 1, 1995

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

Mar 11, 2002

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

Bernard Ebbers resigns

Apr 30, 2002

Vice Chairman John Sidgmore takes over company

Buford Yates Jr. (accounting director) convicted

May 3, 2002

2 counts of securities fraud and conspiracy

WorldCom exits wireless resale business

Jun 5, 2002

Scott Sullivan (CFO) is fired

Jun 25, 2002

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

Jul 1, 2002

WorldCom files for bankruptcy protection

Jul 21, 2002

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.

Aug 1, 2002

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

David F. Myers (Controller) convicted

Sep 27, 2002

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

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

Oct 10, 2002

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

Scott Sullivan pleads not guilty

Apr 22, 2003

claims not guilty on charges of securities and bank fraud

WorldCom settles SEC charges from its accounting irregularities

May 19, 2003

Bernard Ebbers pleads not guilty

Sep 3, 2003

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

Oct 31, 2003

Ebbers found guilty by a federal jury

Mar 15, 2004

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

Jun 13, 2004