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what appears to be the biggest case of corporate fraud in U.S. history.

Discussion in 'The Powder Keg' started by Doglips, Jun 25, 2002.

  1. Doglips

    Doglips G&G Newbie

    Ok people WHO stole the PENS...come one admit it....we know who you are....we know you all stole the office supplies to buy guns and ammo...now give it back!

    Got to love this....man I get grilled over a $10 recipt for a camra by a secratary and manager like I was selling secrets to China and these peopel get away with...let me cut/past this...

    "what appears to be the biggest case of corporate fraud in U.S. history."


    The Associated Press

    JACKSON, Miss. June 25 — WorldCom Inc. said Tuesday it had documented more than $3.7 billion in expenses after an internal investigation uncovered what appears to be the biggest case of corporate fraud in U.S. history.

    More than $3 billion in 2001 and $797 million for the first quarter of 2002 was illegally documented as capital expenditures, the company said.

    As a result, the company said it will restate its earnings for all of 2001 and the first quarter of 2002.

    "Our senior management team is shocked by these discoveries," John Sidgmore, who was appointed WorldCom CEO on April 29, said. "We are committed to operating WorldCom in accordance with the highest ethical standards."

    WorldCom said it has notified its auditors, KPMG LLP, and has asked it to conduct a comprehensive audit of the company's financial statements for 2001 and 2002.

    In a report on its Web site Tuesday night, The Wall Street Journal said WorldCom's chief financial officer, Scott Sullivan, who is also a director, has been dismissed from the company.

    "I want to assure our customers and employees that the company remains viable and committed to a long-term future," Sidgmore said. "I have made a commitment to driving fundamental change at WorldCom, and this matter will not deter the new management team from fulfilling our plans."

    The news could be a body blow to WorldCom, which is reeling from a low stock price, a crumbling telecoms market and an ongoing Securities and Exchange Commission investigation.

    Shares of Clinton-based WorldCom dropped sharply in after hours trading, falling 57 cents to 26 cents a share, down 68 percent from its closing price of 83 cents.

    Shares of WorldCom this year traded as high as $15 in January but have free fallen since over concerns about the company's $32 billion in debt, slowing revenues and the SEC investigation.

    In March, the SEC requested documents detailing pretax charges associated with domestic and international wholesale accounts that were no longer deemed collectible.

    The SEC investigation also focused on disputed customer bills and sales commissions, loans by WorldCom to officers and directors, customer service contracts and organizational charts and personnel records for former employees.

    Drawing scrutiny and investor displeasure were the $408 million in loans WorldCom gave to former chief executive Bernie Ebbers, who resigned in April.

    Bond ratings agencies Moody's Investors Service, Standard & Poor's and Fitch all cut their long-term credit ratings on WorldCom's debt several times this year.

    Shares of WorldCom on Monday closed down 25 percent after Salomon Smith Barney analyst Jack Grubman, long seen as a WorldCom supporter, downgraded his outlook on the company.



    :rolleyes:
     
  2. Logansdad

    Logansdad Guest

    S & L Bailout & Enron are history...
     

  3. Shaun

    Shaun G&G Evangelist

    Hillary's Wharehouse got Raided today they found records of $2million in illegal campaign funds for her senate race. Now that Gotti is out of the picture NY has another big Crime family in place -- THE KLINTON'S