Mr Bernard Ebbers, former WorldCom chairman, and Mr Scott Sullivan, the sacked chief financial officer of the telecom giant, invoked their Fifth Amendment right not to testify before a Congressional committee yesterday about the company's $3.8 billion (€3.85 billion) fraud.
Mr Ebbers sat expressionless as he was savaged by House Financial Services Committee members for taking the Fifth Amendment on the advice of his counsel because other investigations were pending.
"Single moms didn't have packages like you have, I sure wish you could find it in your heart to answer questions," said Democrat Sue Kelly, referring to Mr Ebbers's $408 million dollar loan from the company as WorldCom boss.
Before taking the Fifth, Mr Ebbers protested that he was not guilty of any criminal conduct, and asked members not to subject him to ridicule by asking questions he could not answer.
This infuriated some members who asked for a ruling that the white-bearded founder of the once-mighty telecom giant had forfeited his right and should be held in contempt.
Several Congress members reacted furiously when the chairman at one point told Mr Ebbers that he was excused. "I see no reason to be nice to him so he can go off and count his money," said one Democratic Congressman.
Mr Ebbers stayed and continued to invoke his Fifth Amendment right each time he was asked a question.
Mr Melvin Dick, the senior Andersen audit partner for WorldCom, testified that neither he nor any member of the Andersen team "had any inkling" of the improper accounting, a statement which invoked derision from committee members.
Wall Street analyst Mr Jack Grubman, who had promoted WorldCom stock, was criticised for advising investors to buy stocks of failing telecom companies where he had a personal relationship with company executives, like Mr Ebbers.
He told the House Financial Services Committee that he had attended three board meetings of WorldCom and that his company, Salomon Smith Barney, had made an estimated $80 million in investment fees from WorldCom.
Mr Grubman denied that he had advance notice of the fraud when he downgraded WorldCom's stock three days before the company admitted the fraudulent listing of expenses as capital on June 24th.
Mr Ebbers said in his statement: "I do not believe I have anything to hide in these or any other proceedings."
WorldCom, which owns the number-two US long-distance telephone company MCI, is struggling to avoid bankruptcy after disclosing that it disguised $3.9 billion of expenses as capital expenditures to appear more profitable.
