Times Online's dozen of the most high-profile chief executives and chief
financial officers behind bars in the US and the UK. They were sentenced to
a total of 137 years in prison. The oldest will be an octogenarian when he
is released, assuming he serves his full sentence.
1. Bernard Ebbers
Number: Inmate no. 56022-054
Former job: Chief executive, WorldCom
Sentence: 25 years
Age on release (if full sentence is served): 86
Crime: Ebbers was found guilty in March 2005 of masterminding the $11
billion accounting fraud at WorldCom which led to the collapse of the
telecoms company in 2002, the biggest bankruptcy in US history. He was
convicted of one count of fraud, one count of conspiracy and seven counts of
false filings. He was the highest-profile executive to stand trial for fraud
in the US.
Protestation of innocence: “I know what I don't know. I don't, to this
day, know technology. I don't know finance and accounting.”
Fellow convicts: Scott Sullivan, the former chief financial officer of
WorldCom, was sentenced to five years in jail for his role in the fraud (see
below)
Others sentenced include David Myers, the former controller, Buford Yates, the
former director of general accounting and Betty Vinson and Troy Normand,
former accounting department managers.
Old home: 15,000- sq ft mansion in Brookhaven, Mississippi which sold
for $7.5 million last year
New home: Federal Correctional Institution, Oakdale, Louisiana
2. Scott Sullivan
Number: 54011-054
Former job: Chief financial officer, WorldCom
Sentence: 5 years
Age on release: 47
Crime: Sullivan was described as the "architect" of the
WorldCom fraud and was given a lighter sentence in August 2005 after
entering a plea agreement and giving evidence against Ebbers.
Sign of remorse: "I made some horrible decisions. Everyday I
regret what happened at WorldCom and I accept responsibility for the false
and misleading information."
Fellow convicts: See above
Old home: $10 million, 10-bedroom mansion in Florida
New home: Federal Correctional Institution, Jesup, Georgia
3. Dennis Kozlowski
Number: 05A4820
Former job: Chief executive officer, Tyco International
Sentence: up to 25 years
Age on release: 83
Crime: Kozlowski was jailed for looting more than $150 million from
Tyco with Mark Swartz, his former finance director. The court heard how
Kozlowski spent $2 million on a birthday party for his wife in Sardinia and
$6,000 on a shower curtain. He and Swartz were found guilty in June 2005 of
22 counts of grand larceny, conspiracy, fraud and falsifying records and
were ordered to pay $134 million in restitution. Kozlowski was also fined
$70 million.
Protestation of innocence: "I was a guy sitting in a courtroom who
made $100 million a year. And I think a juror sitting there would just have
to say, ‘All that money, he musta done somethin’ wrong,’"
Kozlowski said in an interview with CBS from prison.
Fellow convict: Mark Swartz (see below)
Old homes: $7 million Park Avenue apartment; $30 million mansion in
Boca Raton, Florida; 8-bedroom ski home in the Colorado Rockies which sold
for $10 million last year
New home: Mid-State Correctional Facility in Marcy, New York
4. Mark Swartz
Number: 05A4823
Former job: Chief financial officer, Tyco International
Sentence: up to 25 years
Age on release: 70
Crime: Swartz was sentenced with his boss Dennis Kozlowski (see above).
In addition to the $134 million in restitution they were ordered to pay,
Swartz was fined $35 million.
Protestation of innocence: Charles Stillman, Swartz's lead defence
lawyer, said after his conviction: "There is no doubt in my mind that
he never stole 10 cents from Tyco."
Fellow convict: Dennis Kozlowski
Old home: $12.2 million, 600-hectare estate in Virginia; $16.1 million
home in Boca Raton
New home: Oneida Correctional Facility in Rome, New York
5. Jeffrey Skilling
Number: 29296-179
Former job: Chief executive, Enron
Sentence: 24 years
Age on release: 74
Crime: Skilling was convicted in May 2006 for masterminding the fraud
at Enron which led to the loss of more than 4000 jobs and $2 billion of
pension funds. He was found guilty of 19 counts of fraud, conspiracy,
insider trading and lying to auditors. Kenneth Lay, Enron’s founder was also
found guilty of six charges of fraud and conspiracy but died in July.
Protestation of innocence: “I'm not happy about it but I believe deep
down - and this is not an act - I believe I am innocent,” Skilling said
after his sentence. However, he had earlier expressed remorse for the
victims of Enron’s collapse.
Fellow convicts: Andrew Fastow, chief financial officer (see below) and
Richard Causey, chief accounting officer.
Old home: $5 million, 8000-sq ft Mediterranean-style mansion in
Houston, Texas
New home: Federal Correctional Institution, Waseca, Minnesota
6. Andrew Fastow
Number: 14343-179
Former job: Chief financial officer, Enron
Sentence: 6 years
Age on release: 49
Crime: Fastow was sentenced in September 2006 for his part in setting
up the complex financial structures used to hide billions of dollars in
losses after pleading guilty to two counts of wire and securities fraud. The
10-year sentence he agreed to serve under a plea bargain in 2004 was reduced
after he gave evidence against Lay and Skilling. He also agreed to give up
more than $29 million in cash and property.
Sign of remorse: “I was extremely greedy, I lost my moral compass and I
did many things I regret."
Fellow convicts: Fastow’s wife, Lea, a former assistant treasurer at
Enron, was jailed for one year in 2004 for filing a false tax return.
Michael Kopper, Fastow’s right-hand man, was jailed for three years and a
month. Mark Koenig, former head of investor relations, was jailed for 18
months.
Old home: $3.9 million, 11,493-sq ft mansion in upscale River Oaks,
Houston
New home: Federal Detention Centre, Oakdale, Louisiana
7: Martin Grass
Number. 11444-067
Former job: Chief executive, Rite Aid
Sentence: 8 years, later cut by 1 year
Age on release: 57
Crime: Grass was jailed in 2004 and fined $500,000 for orchestrating
and covering up an accounting fraud at Rite Aid, the pharmacy chain founded
by his father. After Grass was forced out as chief executive in 1999, the
company had to restate its net earnings downward by $1.6 billion, then the
largest restatement of profits in US history.
Sign of remorse: “When things started to go wrong financially, I did
things to hide that fact,” Grass admitted before his sentence. “Those things
were wrong, they were illegal. I did not do it to line my own pockets.”
Fellow convicts: Four other Rite Aid executives including the former
chief financial officer and former vice chairman received prison sentences.
Old home: $2 million, 10-acre estate in Green Spring Valley, Baltimore
New home: Federal Correctional Institution, Miami, Florida
8. Sam Waksal
Number: 53803-054
Former job: Founder and chief executive, ImClone Systems
Sentence: 7 years
Age on release: 62
Crime: Waksal pleaded guilty in October 2002 to six counts of fraud and
insider trading for attempting to sell shares in his drug company ahead of
an announcement that US regulators would reject an application for its
cancer drug Erbitux. He was also fined more than $4 million. Martha Stewart,
a friend, spent 5 months in prison for lying to investigators about her sale
of ImClone stock.
Sign of remorse: “I want to apologise to all the people who may have
had confidence in me and whose confidence I betrayed,” Waksal said in a
statement to court.
Old home: $8m penthouse in Manhattan; home in the Hamptons which
reportedly sold for $3 million
New home: Federal Correctional Institution, Milan, southeastern
Michigan
9. Carlton Cushnie
Former job: Chairman and chief executive, Versailles Group
Sentence: 6 years
Age on release: 59
Crime: Cushnie, a former Labour party donor, and Fred Clough, his
finance director, were jailed for masterminding a £150 million fraud at
Versailles, a trade finance house. Cushnie was convicted in May 2004 of one
count of conspiracy to defraud relating to his offshoot company Versailles
Traders. He was found not guilty of a larger fraud at Versailles Group, a
FTSE 250 company, which collapsed in 2000. Last November, Cushnie paid £10
million in compensation to his victims after he was forced to sell his villa
in St Tropez.
Protestation of innocence: Cushnie's son Carl Cushnie Jr, speaking in
May 2005 as his father took his appeal to the European Court of Human
Rights, said: "Most people who have an understanding of business and
finance would have trouble following that trial. The idea that 12 lay people
could make a decision in a case that went on for five months is ridiculous
... In the end, they were worried about their holidays."
Fellow convict: Fred Clough, the former finance director of Versailles,
who gave evidence against Cushnie, was sentenced to six years for a larger
fraud at Versailles Group.
Old home: £1.5 million mansion in Kingston, Surrey; £11 million villa
in Ramatuelle, near St. Tropez; apartment on Boulevard St Michel, Paris
New home: Ford open prison
10. Nigel Potter
Former job: Chief executive officer, Wembley
Sentence: 3 years
Age on release: 62
Crime: Potter was convicted in October 2005 for conspiring to bribe
John Harwood, a former Rhode Island House Speaker. He was found guilty in
August 2005 by a US District Court judge on three counts of conspiring to
commit wire fraud and was also fined $75,000.
Sign of remorse: “If I knew what I know now…my actions would have been
different.”
Fellow convict: Dan Bucci, former head of Wembley’s Lincoln Park
gambling emporium in Rhode Island, was sentenced to three years and five
months.
Old home: £1 million home in Sunningdale, Berkshire
New home: HMP Wandsworth. Potter was previously held at Allenwood low
security prison in White Deer, Pennsylvania, then transferred to the
Metropolitan Correction Centre in New York before moving to the UK in May to
serve the rest of his sentence.
11. Kim Seung-youn
Job: Chairman, Hanwha Group, South Korea
Sentence: 18 months
Crime: Kim was jailed for abducting and beating karaoke bar workers
who he said had attacked his son earlier. They were seized from the bar and
taken to a remote construction site where Kim hit them with his fists and
with a steel pipe. He told the court that he then ordered his bodyguards to
take over because he got tired.
12. Shaid Luqman
Former job: Founder and managing director, Lexi Holdings
Sentence: 18 months
Crime: Luqman, who is 238th on the Sunday Times Rich List and a former
Young Entrepreneur of the Year, was jailed for contempt of court in
connection with an investigation into fraud at his former company. He failed
to comply with court orders won by administrators of Lexi Holdings which
went into liquidation in October 2006 with debts of more than £100 million.
nigel pottter should not be in the same group as these others.
daveofri, Providence,
At least the Hilton 1 is finally free from the torment and metal torture of jail.
Cesar, LA,
free nigel Potter, how is it that the American Lawyers can't seem to present documents showing the discussions between various UK , and US Directors and senior Managers, proving that MrPotter was following US Directors requests, which he had called to task,and would have secretarial minutes showing his doubts on the matter.
Pearl Bailey, Horley, Surrey UK
Nigel Potter is included because he is a criminal and has been found and convicted.
sppots, lisbon, portugal
I seem to recall a photo of a Mr Khodorkovsky behind bars in Russia. Is his omission from your list the result of his wealth being stolen from him?
dave heasman, London,
What is this about and why include Nigel Potter? He was not convicted of fraud but conspiracy and that was theoretical. This politically inspired prosecution should never have been brought and should never have succeeded. The case was a travesty and would have not made it to court in the UK as no crime had been committed. This is a case that raises fundamental questions about the fairness of the American justice system and the risk any international businessman now exposes themselves to if they have a US subsidiary. "Wire fraud" is code in this case for innocent e-mails trying to understand what was being proposed by a US employee.
Mike Biden , Winchester, UK
Including Nigel Potter in this list is ridiculous and demonstrates the lack of research that would be expected of a tabloid journal. Including him on a list of 'Miscarriages of Justice against UK citizens in US' would be more appropriate.
Micky Sandall, London, UK
The inclusion of Nigel Potter in a list of most notorious is outrageous. He is totally innocent of anything approaching a crime. He has been wrongly convicted of conspiracy to pay a bribe. Yet in discussing the proposed payments (to the company lawyer - Harwood's law partner - who Dan Bucci wanted to reward for many years of great service) Nigel openly consulted his board who were happy to allow discussion of the payments but required that any final decision be made by the full board. He also consulted the auditors and lawyers on both sides of the Atlantic to make sure that any payment would be above board. Hardly a conspiracy and no payments were made. His sign of remorse? If I knew what I know now? I read that as "if I knew that the US justice system could so devastatingly get the wrong end of the stick I'd have documented my moves more carefully". Nigel needs justice - this frivolus article needlessly aggravates his plight. Shame on The Times for irresponsible reporting.
Neil Chisman, London,
I am not sure why Times Online has run the article "Businessmen behind bars" It must be a quiet news day. It is all old stuff and achieves nothing but it is the sort of thing one expects from the Murdoch empire. It is ridiculous to include Nigel Potter in this group as your writer should know he comitted no crime and voluntarily went to the USA to face trial as he knew that he had done nothing wrong. His faith in US justice was very misplaced.
Ron Clarke, Fetcham,
The inclusion of Nigel Potter in a list of most notorious is outrageous. He is totally innocent of anything approaching a crime. He has been wrongly convicted of conspiracy to pay a bribe. Dan Bucci wanted to reward the company lawyer - Harwood's law partner - for many years of great service. Nigel openly consulted his board about this. The board was happy to allow discussion of the payments but required that any final decision be made by the full board. Nigel also consulted the auditors and lawyers on both sides of the Atlantic to make sure that any payment would be above board. Hardly a conspiracy then and no payments were actually made. His sign of remorse? If I knew what I know now? I read that as "if I knew that the US justice system could so devastatingly get the wrong end of the stick I'd have documented my moves more carefully". Nigel needs justice. This frivolus article needlessly aggravates his plight. Shame on The Times for such irresponsible reporting.
Neil Chisman, London,
Nigel Potter's sign of remorse - “If I knew what I know now, my actions would have been different.”
What he knows "now" is that there is an extremely unjust judicial system in RI that allowed him to suffer a gross miscarriage of justice. Clearly his actions would be different if he knew that even the innocent were found guilty in RI courts.
Oliver Potter, London, UK
Including Nigel Potter in this list is ridiculous and demonstrates the lack of research that would be expected of a tabloid journal. Including him on a list of 'Miscarriages of Justice against UK citizens in US' would be more appropriate.
Micky Sandall, London, UK
Nigel Potter had to be tried twice in order for the US to succeed in getting this conviction. However, he was acquitted of all but three charges of wire fraud. He is completely innocent, his conviction remains highly controversial. All he was doing was his job; discussing a proposal made by the manager of a US subsidiary, and he was following the instructions of the Wembley board of directors. "To proceed with caution" and "to seek legal advice." All of which Nigel did. No agreement was ever made, and no money changed hands. The discussion went round in circles. His conviction is a gross miscarriage of justice.
Jo Potter, Ascot, Berkshire
What a highly selective group of 8 Americans and 2 Englishmen. Surely there are business criminals from France, Switzerland, Russia, China, Japan, and so on. Why were they omitted? To give the impression that only Anglo-Saxons businessmen are crooked? Also, the impression is that the ratio of US to UK business crooks is 4 to 1. The facts are otherwise. Far more American businessmen are charged with and convicted of crimes, usually based on lying to the government, their company's shareholders, and sometimes US Courts than UK businessmen. This explains AIM's success, no doubt, as UK's law enforcement is weak or non-existent. Think Guiness, BCCI and so on.
William H. Dobbs, London,
Of course Paris Hilton knew what she was doing. She is dumb, but not that dumb.
jailhouselawyer, Hull, UK
Er... Those are in the same league as poor little rich girl? You gotta be joking!!!! She doesn't know what she is doing. They did.
elizabeth schumann, Paris, France
A lot of weak people are still profiting by criminal means across the globe, often with weak resistance by governments.
I think we sometimes strike too sparingly with too harsh penalties.
leigh, eden hills, south australia
I'd buy that for a dollar!
Adam Webb, MK, UK
If politicians were judged by the same standards, we would need a new jail each year.
C Smith, Chester,