Great frauds in history: Bernard Ebbers and WorldCom

In 1998, WorldCom was the world's second-biggest telephone company. At its peak, it had a market cap of $186bn, and its founder, Bernard Ebber, had an estimated fortune of $1.4bn

940_MW_P36_Profile_Bottom

WAS2005031504685
(Image credit: 2005 AFP)

Born in Edmonton, Canada, in 1941, Bernard Ebbers (pictured) ran a motel chain before investing in a telephone company called Long Distance Discount Service. He was appointed its CEO in 1985 and would take over 60 communications companies before changing the firm's name to WorldCom in 1995. In 1998 it took over MCI Communications, making it the second-largest telephone company in the world. At the peak of the tech bubble, WorldCom had a market cap of $186bn, giving Ebbers an estimated fortune of $1.4bn.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri