What power bases did Bernie Ebbers and Scott Sullivan rely on to get away with accounting fraud? The power bases are legitimate power‚ reward power‚ coercive power‚ expert power‚ referent power. Case Study Bernie Ebbers built WorldCom Inc into one of the largest telecommunication firms. Yet he and CFO Scott Sullivan have become better known for creating a massive corporate accouting fraud that led to the largest bankruptcy in US history. Two investigative reports and subsequent court cases concluded
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Bernie Ebbers should have gone to jail. I disagree with the 25 year length of his sentence but he is at least partially to blame for the WorldCom fiasco. I think the government used the length of the sentence to prove a point and the only prior sentence comparable to this was John J. Rigas from Adelphia Communications earlier in the year . I think the CFO Scott Sullivan got a light sentence and consciously knew what he was doing and could have put a stop to it. He should have been the good advisor
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A Review of Bernie Ebbers and His Leadership Bernie Ebbers had an amazing rise to power followed by a catastrophic fall. Early in his rise many saw him as a great leader. TIME magazine described Bernie during that time as “It was Ebbers who gave LDDS its mojo --and a mission to democratize U.S. long-distance service. ” (Padgett & Jackson‚ 2002). His charism and aggressive business made him a leader that many wanted to follow. Eventually he was seen very differently‚ during his trial one writer
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Initially‚ my personal values distracted from my ability to sympathize with Bernard Ebbers conviction. His defense team argued that the trial judge wrongly instructed the jury that it could convict Mr. Ebbers on the basis that he engaged in “conscious avoidance” of the fraud at WorldCom. It is evident that Ebbers took a blind eye to any consideration to analyze the good stuff from the bad stuff in this situation. He failed to calculate the considerations of utility and as a result he is paying the
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made it to the office. As a senator‚ Bernie Sanders was very organized‚ and he received so much attention for his speech against tax relief‚ unemployment insurance reauthorization‚ and job creation act of 2010. People encouraged him to run for the 2012 presidential election‚ and they even signed petitions in order for him to run. In the year of 2016 Bernie Sanders is now running for president and seeks for justice for all kinds of people of different races. Bernie Sanders is considered a hero to immigrants
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make fully informed decision about their own stock. This is a case about stocks‚ lies‚ and a man that was willing to defraud the public of billions of dollars in order to support his lavish lifestyle. . Money‚ power‚ and pressure corrupted Ebbers to approve of and direct subordinates to understate expenses and inflate revenues to meet the lofty Wall Street expectations. This case is simple‚ it is not necessarily about accounting‚ it is about lies and choices. This case will show you that
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Case study 10.1 - THE RISE AND FALL OF WORLCOM Bernie Ebbers built WorldCom‚ Inc. (now part of Verizon‚ Inc.) into one of the world’s largest telecommunications firms. Yet he and chief financial officer (CFO) Scott Sullivan have become better known for creating a massive corporate accounting fraud that lead to the largest bankruptcy in U.S. history. Two investigate reports and subsequent court cases conclude that WorldCom executives were responsible for billions in fraudulent or unsupported accounting
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you hear the Lawsuits Now 1. Why do suppose Bernie Ebbers was treated more like the leader of a cult than a CEO? Explain. Bernie Ebbers was considered a cult leader for various reasons the total number of people affected by his behavior and direction of individual who just simply did as he requested which is what cult leaders do. He was known as a leader with charismatic is why a lot of his unethical actions were not challenged. Bernie Ebbers was ordered to pay back $6.13 billion to 830‚000
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picture of all of the company’s capital spending numbers. "No single operating unit knows what is going on in the rest of this operation and it all came together at Scott Sullivan’s level‚" John Sidgmore‚ the chief executive officer who replaced Bernie Ebbers in April‚ said last week. "It was not clear‚ for example to Ron Beaumont‚ who spends most of the capital . . . that capital was being moved somewhere else‚" he added. "It is obvious now that maybe there should have been stronger reviews of some
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of 2000‚ Mr. Ebbers assigned to the Internal Audit Department responsibility for generating the ERP‚ which was a compilation of schedules and trend analyses for tracking orders‚ activations‚ disconnections‚ and cancellations received by the Company from its customers each month‚ and estimating the Company ’s revenues associated with those orders. The reporting package was purely operational in nature and had no audit purpose or use‚ but enabled senior Management‚ and Mr. Ebbers in particular
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