$11.00B
Involved
WorldCom Accounting Fraud
🇺🇸
United States
accounting fraud
Convicted
Date Discovered
June 25, 2002
Organization
WorldCom
Victims
17,000
Perpetrators
Bernard Ebbers, Scott Sullivan
Legal Outcome
Ebbers sentenced to 25 years in prison. Sullivan received 5 years after cooperating.
Economic Impact
Second largest bankruptcy in US history. 17,000 employees lost jobs. Telecom sector devastated.
Regulatory Changes
Strengthened Sarbanes-Oxley implementation, enhanced auditor independence rules.