Bernie Ebbers, the former WorldCom chief executive, was found guilty yesterday of leading an $11 billion (€8.2 billion)accounting fraud at the once high-flying telecommunications group that became the largest bankruptcy in US history.
Following seven days of deliberation, a New York jury convicted Ebbers (63) of securities fraud, conspiracy and seven counts of filing false information with regulators.
He faces more than 20 years in prison when he is sentenced in June.
The verdict marked a stunning turn for Ebbers, who rose from humble roots as a basketball coach in Mississippi to assemble one of the largest telecoms companies in the world and become a celebrity of the 1990s stock market boom.
It also marked a high point for prosecutors in their well-publicised crackdown on white-collar crime following the scandals that rocked corporate America four years ago, bruising investor confidence and ushering in a new era of reform.
The trial featured a familiar and often difficult challenge for prosecutors: to prove that a chief executive was aware of accounting improprieties carried out by lower-level employees.
Ebbers, testifying in his own defence, insisted that he was unaware of any wrongdoing at WorldCom in spite of his title as chief executive and a pay package that included a $10 million retention bonus and tens of millions of dollars more in stock options.
That same defence is expected to feature in the upcoming trials of Enron's former chairman and chief executive, Ken Lay and Jeffrey Skilling.
Ebbers left the courthouse with his family following the verdict. His lawyer, Reid Weingarten, promised to appeal: "We believe there's not a chance that he participated in any fraud or cooking of the books."
The tall, bearded Ebbers, who worked as a bouncer, basketball coach and milkman before getting into the telecommunications business, sat with his hands folded as the verdict was read and showed little reaction. He then turned to hug his wife, who was crying.
Ebbers repeatedly denied the charges, saying he was unaware of the fraud and blamed his former right-hand man and finance chief, Scott Sullivan.
