CEO Scandals: Get Your Scorecard

By Kate Novack Sunday, June 15, 2003
    • For Martha Stewart, it was a tough week. Her friend and former Imclone Chief Sam Waksal was sentenced to prison for insider trading. For us, keeping track of the growing roster of scandal-plagued corporate execs has become a dizzying task. Be honest: Did you even know that Freddie Mac was a company and not a government agency? A cheat sheet.

    Enron

    EXECUTIVES: Former CFO Andrew Fastow has pleaded not guilty to fraud charges. Ex-chairman Ken Lay, left, and former CEO Jeff Skilling have yet to be charged with any crimes.

    COMPANY: After its market cap fell $60 billion, Enron is mostly scrambling to pay back creditors.

    Tyco

    EXECUTIVES: Ex-chief Dennis Kozlowski and his CFO have been charged with looting $600 million from the company. They deny the charges but could face 25 years in prison.

    COMPANY: New management is still trying to fix accounting problems, but the stock is gaining.

    WorldCom

    EXECUTIVES: Founder Bernie Ebbers has not been charged, though the ex-CFO has. Two new reports allege a host of financial tricks were employed to boost earnings.

    COMPANY: Still in bankruptcy. Its $500 million settlement with the SEC is under review.

    ImClone

    EXECUTIVES: A federal judge sentenced ex-CEO Waksal to seven years — the first prison term for an exec implicated in the wave of scandals.

    COMPANY: News that ImClone's cancer drug is back on track has boosted the stock — but it's worth only half what it was pre-scandal.

    HealthSouth

    EXECUTIVES: Former CEO Richard Scrushy denied allegations of accounting fraud and hasn't yet been charged with any crime. But 11 former employees have pleaded guilty.

    COMPANY: It's flirting with bankruptcy. Can the rehabilitation firm rehabilitate itself?

    Adelphia

    EXECUTIVES: Five executives have been indicted for fraud, including founder John Rigas, above, and two of his sons. They pleaded not guilty, and a trial is set for January.

    COMPANY: Investors have an eye on the cable operator, which has made a modest recovery this year.