Search results
Results from the WOW.Com Content Network
The WorldCom scandal was a major accounting scandal that came into light in the summer of 2002 at WorldCom, the USA's second-largest long-distance telephone company at the time.
WorldCom was a U.S.-based telecom company that underwent one of the largest bankruptcies in U.S. history following a massive spate criminal of accounting fraud.
The SEC charged WorldCom with civil fraud and reached a $2.25 billion settlement. Several executives and the CEO were indicted on charges of securities fraud, conspiracy, and filing false documents with regulators.
By June 2002, the United States’ second-largest long-distance telecommunications company confirmed it had overstated its earnings, mainly by classifying as capital expenditures those payments it was making for using the communications networks of other companies.
The WorldCom scandal underscored the critical role of effective corporate governance in preventing corporate malfeasance. It raised questions about the adequacy of checks and balances within the company’s leadership.
In a new documentary, CNBC examines how Bernie Ebbers built WorldCom into a telecom giant that had competitors scrambling but ultimately recorded the nation’s biggest accounting fraud.
The Securities and Exchange Commission filed a civil action yesterday in federal district court in New York charging major global communications provider WorldCom, Inc. with a massive accounting fraud totaling more than $3.8 billion.
The case study WorldCom accounting scandal discuss the financial frauds committed by WorldCom, the leading US telecommunications giant during the 1990’s that led to its eventual bankruptcy.
Former WorldCom finance chief Scott Sullivan was sentenced to five years in prison Thursday by a judge who called him “the architect” of the largest accounting fraud in U.S. history.
The SEC's complaint charged that WorldCom had inflated its income by approximately $3.8 billion through an unlawful scheme, and sought the appointment of a corporate monitor for WorldCom, injunctive relief, and a civil monetary penalty.