Former WorldCom CEO 63 year old Bernard J. Ebbers received a 25 year sentence for his conviction on charges of securities fraud, conspiracy and seven counts of filing false reports with regulators relating to an a multi-billion accounting fraud that resulted in the bankruptcy of WorldCom. Here are the previous posts on the Ebbers case.
Meanwhile, former mid-level Dynegy executive Jamie Olis continues to serve a 24 year sentence even though the market loss (if any) attibutable to the accounting project on which he worked is a fraction of that which occurred in regard to WorldCom. Indeed, Mr. Olis continues to serve his sentence despite the fact that the prosecution’s market loss argument in his case contradicted the Justice Department’s position on market loss that the U.S. Supreme Court adopted in Dura Pharmaceuticals v. Broudo. Similarly, the government continues to defend an appeal of Frank Quattrone’s conviction for witness tampering even after the Supreme Court strikes down Arthur Andersen’s conviction on the same charges under similar circumstances.
Finally, Daniel Bayly is scheduled to report to prison tomorrow and William Fuhs will likely do so in the near future, while Theodore Sihpol goes home (at least for the time being), John and Timothy Rigas are allowed to remain free pending appeal of their convictions for looting their company, Richard Scrushy continues teaching his Sunday school class, and Gary Winnick counts his millions.
Folks, these highly disparate results are not the product of a rational deployment of our criminal justice system. And as Professor Ribstein points out, the Ebbers sentence is worse than any wrong that he committed. Ellen Podgor has these thoughts along the same lines.
Houston's Clear Thinkers
Longtime Houston attorney Tom Kirkendall's observations on developments in law, business, medicine, culture, sports, and other matters of general interest to the Houston business, professional, and academic communities.
Thanks Tom K for writing about the unpopular truth that the current white collar prosecutions are not about protecting society and about just punishment, it is about grabbing headlines for ambitious prosecutors and a politically motivated department of justice. I’m sure that one day tax payers will wake up and ask why the doj has allowed themselves to use up their limited resources to stroke their own egos and build their personal resumes but that may be too late for too many. These prosecutors are spending millions of tax dollars to pursue shaky cases against business people and then even more tax dollars to imprison them for decades- people who had no criminal history and most of whom had no personal motivation to have committed a crime and many of whom (let’s just all admit it)are innocent of any intent and of any previously recognizable crime- how is this just? I guess these prosecutors are no longer concerned with drug crimes,crimes against children and violent crimes- apparantly those crimes are not as challenging as finally getting to control and coerce intelligent, successful people and ruining lives that they once envied. I hope more people like you find a way to tell it like it is.
FJO (Free Jamie Olis)
The Ebbers sentence
Itís almost painful to talk about Ebbers
Bernie Ebbers in 3 Acts
Before resigning in 2002:
Arrest mug shot in 2003:
Leaving court after setencing in 2005:
I have some empathy for Mr. Ebbers and real sympathy for his family. Aeschylus would write about this if he had a weblog.
Mr. Ebbers’ actions …
Ebbers sentence
Bernie Ebbers was sentenced to 25 years in prison on the grounds that, as prosecutors posited, his crimes caused $2.2 billion in losses. But prosecutors’ methodology for calculating that loss is questionable. As Tom Kirkendall points out, it contradict…