Bernard Ebbers facts for kids

Quick facts for kids Bernard Ebbers
Ebbers c. 2000
Born	(1941-08-27)August 27, 1941 Edmonton, Alberta, Canada
Died	February 2, 2020(2020-02-02) (aged 78) Brookhaven, Mississippi, U.S.
Criminal status	Deceased
Spouse(s)	Linda Pigott ​ ​ (m. 1968; div. 1997)​ Kristie Webb ​ ​ (m. 1999; div. 2008)​
Criminal charge	Securities fraud, conspiracy
Penalty	25-year imprisonment
Imprisoned at	Federal Correctional Institution, Fort Worth

Bernard John Ebbers (born August 27, 1941 – died February 2, 2020) was a Canadian businessman. He was the co-founder and CEO of a big phone company called WorldCom.

Under his leadership, WorldCom grew very quickly. But in 2002, the company got into serious trouble. It was discovered that WorldCom had made its money records look much better than they really were. This was one of the biggest money scandals in U.S. history at the time.

Ebbers said that others working for him were responsible for the problems. However, he was found guilty of serious financial wrongdoing. He went to prison for his part in the scandal. In December 2019, he was released from prison because he was very sick. He died just over a month later.

People sometimes called Ebbers the "Telecom Cowboy." This was because he often wore boots and blue jeans instead of a suit and tie. He also lived on a farm and enjoyed driving a tractor.

Early Life and Education

Bernard Ebbers was born in Edmonton, Alberta, Canada. He was the second of five children. His parents, Kathleen and John Ebbers, were very religious Christians. His father was a traveling salesman.

When Bernard was young, his family moved to California. They also lived for a while on a mission post in New Mexico. This was on a Navajo Nation Indian reservation. Later, when Bernard was a teenager, his family moved back to Canada.

After high school, Ebbers went to the University of Alberta and Calvin College for a short time. Then, he went to Mississippi College on a basketball scholarship. Before and between schools, he worked as a milkman and a bouncer.

An injury stopped him from playing basketball in his final year. Instead, he coached the junior varsity team. In 1967, he earned a college degree in physical education. He also studied secondary education.

Career at WorldCom

Ebbers started his business career by running a group of motels in Mississippi.

In 1983, he and three other investors started a company called Long Distance Discount Services, Inc. They met in a coffee shop in Hattiesburg, Mississippi. In 1985, Ebbers became the main leader, or chief executive officer, of the company.

His company bought over 60 other phone companies. In 1995, it changed its name to WorldCom.

WorldCom continued to grow by buying other large companies. In 1996, it bought MFS Communications. In 1998, it bought MCI Communications. WorldCom even tried to buy another huge company, Sprint Corporation, for $115 billion in 2000. But the governments in the U.S. and Europe stopped the deal. They worried it would create too much of a monopoly.

Between 2000 and 2002, the leaders of WorldCom gave Ebbers several loans. This was so he wouldn't have to sell his WorldCom shares. The company's stock price was falling fast during the "dot-com bubble" burst. By April 2002, many of the company's leaders were unhappy with Ebbers because of these loans. They also felt he didn't have a clear plan for the company's future.

On April 26, 2002, WorldCom's board of directors voted for Ebbers to leave his job. He officially resigned on April 30, 2002. As he left, all his loans were combined into one big loan of $408.2 million. In 2003, Ebbers could not pay back this loan. WorldCom then took many of his valuable things to cover the debt.

Awards and Recognition

Bernard Ebbers received several honors during his career:

• He was added to the Mississippi Business Hall of Fame in May 1995.
• Wired magazine named him one of the "Wired 25" in November 1998.
• Network World magazine called him one of the 25 most powerful people in networking in January 1999.
• He was on the Time Digital 50 list in 1999.
• He received honorary degrees from Mississippi College in 1992 and Tougaloo College in 1998.

Financial Problems and Legal Issues

On June 25, 2002, WorldCom announced that it had made mistakes in its financial records. These mistakes made the company look like it had nearly $3.9 billion more than it actually did. By July 22, 2002, WorldCom had to file for bankruptcy. This means the company ran out of money and could not pay its bills.

Eventually, the amount of money problems grew to $11 billion. This led to many investigations and legal cases, mostly focusing on Bernard Ebbers.

Ebbers said that others, like WorldCom's chief financial officer, were to blame for the financial problems.

Appearing Before Lawmakers

On July 8, 2002, Ebbers had to appear before a group of U.S. lawmakers. He said, "I do not believe I have anything to hide, I believe that no one will conclude that I engaged in any criminal or fraudulent conduct."

After saying this, Ebbers chose not to answer any more questions. He used his right to remain silent, which is part of the U.S. Constitution. This means he didn't have to say anything that might make him look guilty.

Prison Time

On July 13, 2005, a judge sentenced Ebbers to 25 years in a federal prison. He was allowed to stay free for another year while his lawyers tried to appeal the decision. But in July 2006, a higher court agreed with the original decision.

On September 6, 2006, the judge ordered him to report to prison on September 26. Ebbers drove himself to the Oakdale Federal Correctional Institution in Oakdale, Louisiana. He served his time in a part of the prison for people who committed non-violent crimes.

Ebbers was released early in December 2019, after serving 12 years. This was because he had serious health problems.

Lawsuits from Investors

On October 11, 2002, people who had invested in WorldCom filed a lawsuit against Ebbers and others. They said they lost money because of the company's financial problems.

A judge ordered everyone involved to try to reach an agreement. Ebbers and others agreed to pay over $6.13 billion to more than 830,000 people and groups who owned WorldCom stocks and bonds.

Ebbers had to give up almost all of his valuable things. This included his home in Mississippi, his share in a lumber company, a marina, a golf course, a hotel, and thousands of acres of land. After this agreement, his wife was left with only about $50,000. On September 21, 2005, the judge approved the agreement and closed the lawsuit against Ebbers.

Personal Life

Marriages

In 1968, Bernard Ebbers married Linda Pigott. They had three daughters together. He divorced Linda in 1997. In 1999, he married his second wife, Kristie Webb. She filed for divorce in April 2008, less than two years after he went to prison.

Personal Holdings

At his wealthiest in early 1999, Ebbers was worth about $1.4 billion. He was listed as one of the richest people in the U.S. He owned many different businesses and properties, including:

• Douglas Lake The largest ranch in Canada, covering 500,000 acres in British Columbia.
• Angelina Plantation A large farm in Monterey, Louisiana.
• Joshua Holdings Over 540,000 acres of timberlands (forests used for wood) in several states.
• Columbus Lumber A high-tech lumber mill in Brookhaven, Mississippi.
• Yachts He owned a company that built and repaired yachts.
• Hotels He owned or co-owned nine hotels in Mississippi and Tennessee.

Other Activities

From 1993 to 1995, Ebbers was the chairman of a group that worked to make phone companies more competitive. He asked the U.S. Congress to help increase competition.

In 1997, he led a fundraising campaign for Mississippi College. The goal was to raise $100 million to improve the college's buildings.

In 2001, President George W. Bush suggested Ebbers lead a committee about national security and telecommunications.

Religious Faith

While he was the CEO of WorldCom, Bernard Ebbers was a member of the Easthaven Baptist Church in Brookhaven, Mississippi. He was a well-known member of the church. He often taught Sunday school and went to church services with his family. His faith was very important to him. He even started business meetings with a prayer.

When the accusations of financial wrongdoing first came out in 2002, Ebbers spoke to his church. He told them he was innocent. He said, "I just want you to know you aren't going to church with a crook. No one will find me to have knowingly committed fraud."

Death

Bernard Ebbers died at his home in Brookhaven, Mississippi, on February 2, 2020. He was 78 years old. This was just over a month after he was released from prison because of his poor health. His lawyers said that by the time he died, he was almost blind and suffering from memory loss, low blood count, and significant weight loss.

See also

In Spanish: Bernard Ebbers para niños