Ebbers Gets 25 Years in Prison
KAGAN: This just in to CNN, the sentence is in for former WorldCom CEO Bernie Ebbers. Our Allan Chernoff outside the courthouse in New York City where that sentence handed down just moments ago -- Allan.</s>ALLAN CHERNOFF, CNN CORRESPONDENT: That's right, Daryn. The judge has determined that the sentence for Bernie Ebbers, the former chief executive of WorldCom, will be 25 years in prison. She's saying that that's likely to be a life sentence since Mr. Ebbers is 63 years old. She denied a request by his attorneys to reduce the sentence because of his heart condition, saying it was not serious enough. Mr. Ebbers being sentenced after his conviction for his role in the $11 billion accounting scandal at WorldCom. That had been, and continues to be, the biggest corporate accounting scandal in the history of America. So again, 25 years for Bernie Ebbers in prison. A dramatic downfall for Mr. Ebbers. He had been leading the nation's number-two company, and he really built it up from virtually nothing. Years ago, Mr. Ebbers ran some motel chains. He and some partners bought a small telecom company in Mississippi, built it up through acquisition after acquisition. They even bought MCI. They bought it into a great, big company. And then the scandal hit. The company had great trouble meeting the analyst expectations on Wall Street. Mr. Ebbers and his chief financial officer, Scott Sullivan, essentially cooked the books, and it was a huge scandal, as we said, an $11 billion accounting scandal, and now Bernie Ebbers facing 25 years in prison. In the courtroom, we now have heard Mr. Ebbers was sniffling as the judge made this announcement, and a big comparison, a big dramatic difference from his entrance this morning, where he actually shoved a photographer with both hands as he entered the courthouse. So certainly a very dramatic sentence, a very stiff sentence here. And I'm reading just some notes from my producer inside, saying that Mr. Ebbers is required to transfer all of his cash to a liquidation trust. Mr. Ebbers has already agreed to give up most of his assets. He settled with WorldCom shareholders, giving up more than $40 million in assets, as well as his estate in Mississippi, essentially leaving his wife, Christie, with just the home in Mississippi, a small home in Mississippi, as well as $50,000 to live on. So again, once again, 25 years for Bernie Ebbers, the former chief executive of WorldCom.</s>KAGAN: And does he go right into custody?</s>CHERNOFF: The judge actually has not yet announced that, but I can tell you that anyone who is required to serve more than 10 years in prison is not sent to a minimum-security prison camp. Rather, Mr. Ebbers would most likely be sent to a low-security federal correction institute. And the government also does try to place people within 500 miles of their home, so that means that if they follow that guideline, Mr. Ebbers could be sentenced to serve his time in Yazoo City, Mississippi. There's also a low-security prison in Florida as well, in the panhandle of Florida. Coleman is the name of that facility. So, but we don't know just yet exactly where Mr. Ebbers will be serving his time, but 25 years is the sentence for Bernie Ebbers for his involvement in the $11 billion accounting scandal at WorldCom -- Daryn.</s>KAGAN: All right, we should say those pictures we were showing of Bernie Ebbers, too, clearly file pictures. It was a sunny day. His hair also a lot longer than as we saw it was when he walked into the courthouse on that rainy morning today in New York City. Allan, thank you. We'll be back to you. Meanwhile, let's get some legal analysis on this and bring in former U.S. prosecutor Kendall Coffey, joining us now fro Miami. Kendall, 25 years. Prosecutors were asking for 85. But at his age, at Bernie Ebbers age and health status, kind of doesn't really matter.</s>KENDALL COFFEY, FMR. U.S. PROSECUTOR: I think 25 years is a very, very strong sentence, a very powerful message that's got to be heard in every boardroom in America right now. Daryn, there was a time when five or six years might have seemed like a severe sentence, prior to Enron. As we know now, the landscape has changed so drastically. And I think with the 25 year sentence, effectively the rest of his life, the message couldn't be stronger about corporate accountability.</s>KAGAN: All right, Allan Chernoff, also just getting word now that Bernie Ebbers not reporting today, but he must report within 72 hours. Is that standard, Kendall?</s>CHERNOFF: Well, it's not, per se, standard, but it's certainly not extraordinary. When you're looking at that many years, I think the judge's view is, let's get started. And she's looking at a record of somebody that this just found to have committed the most serious white-collar fraud in the history of the country. Think of terms of</s>KAGAN: All right, Kendall Coffey, live from Miami. Kendall, thank you. More on Bernie Ebbers ahead. Also, we're probably just about 15 minutes away from the shuttle of the -- from the crew of the Space Shuttle Discovery walking out. They've suited up. We've seen those pictures. They are getting ready to load up for their launch about three hours from now. You're going to see those pictures live right here on CNN. More on that straight ahead after this break.