Ebbers 'dominated' Failed Worldcom

A court-appointed investigator last night presented a withering portrayal of former WorldCom chief executive Bernard Ebbers, who was said to have single-handedly "dominated" the failed company.

In a 122-page report filed with the bankruptcy court, Richard Thornburgh also raised the prospect of further financial restatements beyond the $7bn already announced after it was discovered that costs had been misreported.

The stiffest criticism is reserved for Mr Ebbers, the churchgoing company founder, who it was disclosed used WorldCom shares to guarantee more than $1bn in personal or business loans. "One person, Bernard Ebbers, appears to have dominated the course of the company's growth, as well as the agenda, discussions and decisions of the directors," the report said.

Meetings of the compensation committee were brief, with members deferring to Mr Ebbers' recommendations. "While Mr Ebbers received more than $77m in cash and benefits from the company, shareholders lost in excess of $140bn in value," it said. Mr Ebbers left the company owing it more than $400m in loans he received between September 2000 and April 2002.

Mr Thornburgh said he has "significant information" alleging that WorldCom personnel created fake internal reports to conceal their financial manipulations but the details were excluded for fear of prejudicing criminal inquiries.

Chief financial officer Scott Sullivan has so far been the highest-ranking executive at WorldCom to be indicted on fraud - no charges have been brought against Mr Ebbers.

The report also highlighted the relationship between WorldCom and Salomon Smith Barney. It pointed to occasions where former telecoms analyst Jack Grubman would agree to ask questions during conference calls that would elicit positive answers.

"WorldCom put extraordinary pressure on itself to meet the expectations of securities analysts," the report said.