Onetime WorldCom CEO pleads innocent

Ebbers accused of violating securities laws

? Former WorldCom chief executive Bernie Ebbers pleaded innocent Wednesday to the first criminal charges brought against him in the long-distance company’s $11 billion accounting scandal.

The 62-year-old Ebbers was freed on $50,000 bail, and a pretrial conference was set for Oct. 30.

Earlier in the day, he was fingerprinted and photographed after surrendering to face the charges brought against him last week.

He and five other former officials with WorldCom, now known as MCI, are accused of 15 violations of Oklahoma securities law, each carrying up to 10 years in prison and $10,000 fine. The company also was charged.

The charges were brought by Oklahoma Atty. Gen. Drew Edmondson, who said WorldCom’s falsified books cost Oklahoma investors millions, including a $64 million hit taken by state pension funds.

“We know of no evidence whatsoever that links Bernard Ebbers to securities fraud,” his attorney, Reid Weingarten, said after the arraignment. “That’s no surprise, Bernard Ebbers has committed no crimes. We are completely confident when we get to court that Mr. Ebbers will be exonerated.”

Prosecutor Debbie Paz disputed Weingarten’s comments: “Come to the trial; you can see the evidence.”

Although these are the first criminal charges against Ebbers and the company itself, other former WorldCom executives have been charged in federal court.

Other states also were hit hard by the company’s collapse, but Edmonson decided to take the initiative, upsetting federal authorities with his vigorous prosecution of the company and its top executives.

U.S. Atty. James Comey in New York has expressed concern that the Oklahoma charges could interfere with the federal investigation. And the Securities and Exchange Commission has said it was “disappointed” by the state action.

Former WorldCom chief executive Bernie Ebbers walks with his wife, Christy, after his arraignment at the Oklahoma County Courthouse in Oklahoma City. Ebbers pleaded innocent Wednesday to the first criminal charges brought against him in the company's 1 billion accounting scandal.