Why Bernie Ebbers is Serving a 25-Year Jail Sentence

1. Background

On September 26, 2006, Bernard J. Ebbers ("Ebbers"), the former Chief Executive Officer of WorldCom, Inc. ("WorldCom"), reported to a federal prison in Oakdale, Louisiana, to begin serving his 25-year jail sentence from his conviction by a jury on nine counts of conspiracy, securities fraud and related crimes related to the bankruptcy of WorldCom in July 2002. Ebbers’ appeals from his conviction and 25-year jail sentence were dismissed by the United States Court of Appeals for the Second Circuit on July 28, 2006.¹

In its decision upholding the jury conviction and the 25-year jail sentence imposed by the trial judge, the Court of Appeals for the Second Circuit commented that Ebbers’ actions that were specifically intended to create a false picture of profitability for WorldCom were "motivated by his personal financial circumstances".² Ebbers personal finances imposed significant pressures on him to ensure that the WorldCom stock price did not fall and that WorldCom’s