March 2, 2004 — (WEB HOST INDUSTRY REVIEW) — According to reports released Tuesday, the former chief executive of WorldCom has been indicted on federal charges related to the multibillion dollar accounting scandal faced by the company in 2002.
The Associated Press cited an anonymous government official, who indicated that the charges would include securities fraud.
Ebbers resigned from his position with WorldCom in April of 2002, amid a great deal of suspicion about the company’s finances. Shortly after his retirement, WorldCom announced that an internal investigation had uncovered billions in improper accounting. Through the ensuing inquiry, the number grew to approximately $11 billion. The company filed for bankruptcy in July of 2002.
WorldCom has since changed its name to MCI and moved its corporate headquarters. The company is scheduled to emerge from bankruptcy this spring.
