Return to Transcripts main page

CNN Live At Daybreak

MCI's Former CEO to Face Charges Next Wednesday

Aired August 29, 2003 - 06:17   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Time now, though, for a little business buzz. MCI's former top man gets a court date.
Carrie Lee live at the Nasdaq market site with all the details.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.

Bernard Ebbers, former CEO of WorldCom, now known as MCI, is going to appear in Oklahoma state court on Wednesday to face 15 counts of violating the state's Securities Act.

Now Ebbers, as I said, is the former CEO of MCI. He and five other former company executives were charged two days ago. The state also filed suit against MCI itself and this marks the first time that criminal charges have brought -- been brought against the company and against Ebbers.

Now the Justice Department is also conducting its own investigation into the company's $11 billion accounting fraud. Meanwhile, "The Wall Street Journal" reports that several other states are considering filing lawsuits against MCI and its executives, also alleging tax fraud. West Virginia, according to "The Journal," could file within days. Alabama and Arkansas are also considering mulling such a move.

Now MCI filed the biggest bankruptcy in corporate history last July. Carol, almost hard to believe it's taken this long to file charges against them. But looks like things are rolling and we'll know more next Wednesday when Mr. Ebbers is expected to appear in court.

COSTELLO: All right. Carrie Lee, live from the Nasdaq market site, many thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired August 29, 2003 - 06:17   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time now, though, for a little business buzz. MCI's former top man gets a court date.
Carrie Lee live at the Nasdaq market site with all the details.

Good morning -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.

Bernard Ebbers, former CEO of WorldCom, now known as MCI, is going to appear in Oklahoma state court on Wednesday to face 15 counts of violating the state's Securities Act.

Now Ebbers, as I said, is the former CEO of MCI. He and five other former company executives were charged two days ago. The state also filed suit against MCI itself and this marks the first time that criminal charges have brought -- been brought against the company and against Ebbers.

Now the Justice Department is also conducting its own investigation into the company's $11 billion accounting fraud. Meanwhile, "The Wall Street Journal" reports that several other states are considering filing lawsuits against MCI and its executives, also alleging tax fraud. West Virginia, according to "The Journal," could file within days. Alabama and Arkansas are also considering mulling such a move.

Now MCI filed the biggest bankruptcy in corporate history last July. Carol, almost hard to believe it's taken this long to file charges against them. But looks like things are rolling and we'll know more next Wednesday when Mr. Ebbers is expected to appear in court.

COSTELLO: All right. Carrie Lee, live from the Nasdaq market site, many thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com