GO
Loading...

Episode 12: Inside the WorldCom Scam | DHS: Department of Hollywood Scams

Case File

Inside the WorldCom Scam & DHS: Department of Hollywood Scams
Bernard Ebbers, CEO of WorldCom, rises from rags to riches. But the "telecom cowboy" becomes the poster child for everything that went wrong on Wall Street in the 1990's. WorldCom's eventual downfall shakes the financial community and the lives of thousands of investors. And in our second case, Joseph Medawar is a hotshot television producer. He creates a new action packed adventure series based on real life national security cases. Investors fund the project. But there's no show -- only a scam to rob investors out of millions of dollars!

Case 1: Inside the WorldCom Scam

  • Rags to Riches
  • He came from nothing and went to the top of the financial world. Bernard Ebbers took a small telephone company and turned it into a telecom giant. As the head of WorldCom, Ebbers was worth billions.
  • The Lifestyle
  • The Aquasition, a 132-foot yacht and the largest privately-owned ranch on earth. Bernard Ebbers spared no expense when it came to himself. But the lavish lifestyle put WorldCom investor fortunes in jeopardy.
  • Billion Dollar Fraud
  • The outlook for the telecom business turns stormy. WorldCom stock tumbles. Ebbers is asked to resign. But the company hasn't hit rock bottom yet... an internal auditor makes a discovery that shocks Wall Street and the world!

Case 2: DHS: Department of Hollywood Scams

  • Lights, Camera, Action!
  • The allure of Hollywood. Promises of an action-adventure series based on cases from the Department of Homeland Security. Producer Joseph Medawar's plans for a new TV series to attract attention... and money. But the show is just a scam to bilk millions out of investors.
  • Key Player
  • Dana Rohrabacher. A Congressman and writer with a screenplay. Medawar offers to make his script a movie. A deal is struck. Rohrabacher is also interested in "DHS: The Series" and begins introducing Medawar to many influential figures in Washington, D.C. The con takes on an air of legitimacy.
  • Curtain Call
  • The FBI and IRS catch on to Medawar's scam. The con game is about the end, but not before investors are taken for more than $5.5 million. American Greed profiles the case of a Hollywood dream that turned into a nightmare for investors.

Web Extras

American Greed Showtimes

AMERICAN GREED MARATHON FRIDAY!
Friday, April 18th 12p – 6p ET
12p ET AG #79
The Lady Killer
1p ET AG #82
Young Lust Goes Bust
4p ET AG #81
Murder in Memphis
Check the U.S. TV schedule for additional showtimes.
#AmericanGreed

Most Popular Video

Thursday, 17 Apr 2014 | 5:00 AM ET

Today is CNBC's 25th anniversary. There have been a lot of great moments in the network's history. Here are just a few.

Thursday, 17 Apr 2014 | 3:15 AM ET

Jonny Forsyth, global drinks analyst at Mintel, says China has been a "cash cow" for drink-makers, but the slowdown is having a big impact on sales.

Thursday, 17 Apr 2014 | 1:35 AM ET

CNBC's Helia Ebrahimi discusses the Co-Operative's troubled story from drug buying allegations against the former chairman, to big financial black holes.