Ebbers Surrenders, Enters Plea

By: Associated Press
By: Associated Press

Former WorldCom CEO Bernard Ebbers pleaded not guilty Wednesday to federal charges that he conspired with his chief financial officer to cook the company's books in the biggest corporate fraud in American history.

Ebbers surrendered to the FBI before his arraignment in Manhattan federal court. He was released on a $10 million bail. Ebbers' lawyer, Reid Weingarten, says he's disappointed at the charges in an indictment naming Ebbers and former Chief Financial Officer, Scott Sullivan.

Sullivan entered a guilty plea Tuesday to the charges and agreed to testify against his former boss.

Ebbers and WorldCom's former chief financial officer face the same securities fraud charges.

The indictment accuses both Ebbers and Sullivan of deceiving the public, federal regulators, securities analysts and others about WorldCom's true declining financial condition.

The fraud is now estimated at $11 billion.


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