In federal courtrooms about 1,000 miles away from each other, two high-profile criminal trials of corporate CEOs are proceeding with so many similarities that it sometimes can be hard to keep them straight. In New York, a jury will likely reach a verdict this week on whether former WorldCom CEO Bernie Ebbers will go to prison in connection with the massive accounting fraud that occurred at that company. In Alabama, the trial of former HealthSouth CEO Richard Scrushy for his alleged role in that company’s accounting fraud is ongoing.
In their defense, Ebbers and Scrushy have testified or otherwise publicly stated that they had no idea that any accounting fraud had occurred, and that responsibility for the fraud lies with the person who controlled the company’s books—the chief financial officer. Indeed, the star prosecution witnesses in both trials are former CFOs of the companies involved. These men have pleaded guilty to participating in the frauds, but have testified that they did so at the direction of intimidating and unrelenting CEOs.
