The wheels of justice turn slowly, and many a rich scumbag has been able to buy his way out of his just desserts, but not today. Bernie Ebbers, the former Worldcom CEO whose accounting fraud ended up costing investors nearly $11 billion, was sentenced to 25 years in prison. If his health is nearly as bad as he claimed it was when pleading for leniency, that’s going to be the rest of his life.
According to Scott Moritz at TheStreet.com, U.S. District Judge Barbara Jones rejected defense attorneys’ request for a reduced sentence. “This is not a minor fraud,” she replied. The 25 year sentence she handed down was still considerably lighter than the 85 requested by prosecutors.
U.S. prosecutors had sought a maximum 85-year sentence. Ebbers’ attorneys had pointed to the former telecom titan’s charitable contributions and poor health in an effort to get a lighter sentence. But Jones indicated Ebbers’ heart condition wasn’t “extraordinary” and said her research indicated that he could get adequate care in prison.
Jones turned down defense arguments that she should depart from federal sentencing guidelines, though she said she was impressed by his record of charitable contributions. Ebbers lawyer Reid Weingarten emphasized that point in the courtroom Wednesday, saying that some poor families had despaired of sending their children to college before “an angel” emerged. “That angel was Bernie Ebbers!” Weingarten said to some amusement in the courthouse.
It’s easy to be generous when you’re stealing 11-digit sums, isn’t it?
Ebbers will be stripped of most of his assets before going to prison. (Once auctioned off, the funds will go help recoup investors’ losses, though their total value is estimated to be well under $40 million.) He will be following on the heels of 80-year-old Adelphia founder John Rigas, who received a 15-year sentence.
Meanwhile, former Enron CEO Kenneth Lay was indicted last week on 11 counts of securities fraud, wire fraud, and making false and misleading statements, charges which could earn him 175 years in prison.
So at least today, if the avalanche of fresh outrages from Washington gets you down, you can take some solace in knowing that justice is still occasionally served, and that wealth and power are not perfect insulation against the rule of law.
