Former WorldCom CEO denies criminal charges

Former WorldCom CEO Bernard Ebbers plead innocent Wednesday to federal charges that he directed an $11 billion accounting fraud, the biggest in U.S. corporate history.

The 62-year-old Ebbers was led to court in handcuffs after surrendering to the FBI early Wednesday, a day after former WorldCom finance chief Scott Sullivan pleaded guilty to an $11 billion fraud and agreed to testify against his former boss at the nation’s No. 2 long-distance company.

Ebbers did not speak in court. His lawyer, Reid Weingarten, entered the innocent plea on his behalf to conspiracy, securities fraud and other charges that carry up to 25 years in prison. Ebbers was released on $10 million bond that was partly secured by his Mississippi home. Trial was set for Nov. 9.

Above, Ebbers leaves federal court Wednesday with his wife, Kristy.

Nation

Hiring, factory reports signal economic rebound

Factories hummed and consumers kept cash registers busy in the first two months of this year, fresh evidence the economic recovery is moving ahead, according to a Federal Reserve report Wednesday.

A separate survey of chief executives of the nation’s biggest companies suggested hiring could start to pick up. One-third of the executives said they expected to increase hiring in the next six months, while 22 expected to cut payrolls and 45 percent expected no change, according to a Business Roundtable survey.

The association said that was the first time since the fall of 2002 that a larger share of executives planned to add to payrolls rather than cut them.

In the Fed report, factory activity rose in 11 of the 12 regional Fed districts, good news for America’s manufacturers, who were hardest hit by the 2001 recession and have struggled to get back on firm footing. Even with the pickup in factory activity, manufacturers have lost 3 million jobs since July 2000. That’s the month factory employment peaked as the economy was enjoying a record-long expansion.

Telemarketing

Large industry group won’t fight do-not-call

Some telemarketers are taking their fight over the government’s popular do-not-call list to the Supreme Court, but the industry’s largest group decided Wednesday to bow out of the legal battle.

The Direct Marketing Assn. decided not to pursue further litigation over the national registry that blocks unwanted sales calls.

“The telephone marketing industry remains committed to respecting the wishes of those who have placed their household telephone numbers on the do-not-call list,” said H. Robert Wientzen, president and CEO of the New York-based group. DMA represents nearly 4,700 companies that sell products over the phone, online and through the mail.

But the American Teleservices Assn. said it would ask the Supreme Court to review a decision by a three-judge panel of the 10th U.S. Circuit Court of Appeals in Denver upholding the list.