Worldcom Convict Gets $7.5 Loan Guarantee from Obama’s Stimulus

David Myers, a former Worldcom executive who served 11 months in prison after being convicted of fraud, received a $7.5 million loan that was guaranteed by the federal government with money from the 2009 stimulus.

Worldcom filed the largest Chapter 11 bankruptcy in U.S. history 2002, after three years of “falsely professing financial growth and profitability to increase the price of WorldCom’s stock.” As Worldcom controller, Myers was one of the three executives most intimately involved in perpetrating the fraud, which exaggerated that company’s value by $11 billion.

Myers was sentenced to a lighter sentence –  year and a day in prison — than his cohorts “because of his extraordinary cooperation with the government and his early admission of responsibility and remorse.”

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