Defrauded WorldCom Investors to Receive Payback
By Katie Hauser
Published on October 25, 2006
All reimbursements will come out of the “Fair Fund," which the SEC created to repay duped investors in the wake of WorldCom's accounting fraud. The SEC hoped that it would bolster investor faith in America’s capital markets. The $750 million fund was created entirely out of a penalty WorldCom agreed to pay in 2003.
Over 450,000 claims against WorldCom have been made by thousands of cheated investors in over 110 countries, and in more than 10 languages.
WorldCom grew during the 1990s telecommunications boom as a result of takeovers initiated by former CEO Bernard Ebbers. Ebbers began serving a 25-year sentence in September for his involvement in the company's accounting scandal, which was the largest corporate fraud in U.S. history.
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