Keyword: worldcom

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  • Worldcom convict gets $7.5 (Million) loan guarantee from Obama’s stimulus [Tax Dollars for Crooks]

    06/21/2012 5:03:59 PM PDT · by SoFloFreeper · 13 replies
    Washington Examiner ^ | 6/21/12 | Joel Gehrke
    David Myers, a former Worldcom executive who served 11 months in prison after being convicted of fraud, received a $7.5 million loan that was guaranteed by the federal government with money from the 2009 stimulus. Worldcom filed the largest Chapter 11 bankruptcy in U.S. history 2002, after three years of “falsely professing financial growth and profitability to increase the price of WorldCom’s stock.” As Worldcom controller, Myers was one of the three executives most intimately involved in perpetrating the fraud, which exaggerated that company’s value by $11 billion.
  • Social Security readies for onslaught

    01/07/2009 11:35:02 AM PST · by rabscuttle385 · 30 replies · 1,401+ views
    New online program can replace trip to a field office WASHINGTON — The Social Security Administration, envisioning the near-future prospect of 10,000 baby boomers applying for benefits every day, has put together a new online service that will allow people to get their benefits without ever traveling to a Social Security field office. The agency, in introducing the program Tuesday, said most people will be able to apply for their retirement or disability benefits in 15 minutes or less.
  • Video: Comparing Fannie/Freddie to Enron/Worldcom/Tyco

    10/02/2008 12:48:15 PM PDT · by PajamaTruthMafia · 6 replies · 1,061+ views
    HotAir ^ | 10/2/08 | HotAir
    A new YouTube group, Taxpayers for Truth, has a good question to ask today. The Bush administration frog-marched executives from Enron, Tyco, and Worldcom into federal prison for their financial shenanigans, in collapses that look positively microscopic in the wake of the failure of Fannie Mae and Freddie Mac. Why hasn’t anyone in the recent failure received the same treatment? Here is the roster presented by the video, in brief: Bernard Ebbers, Worldcom: 25 years in prisonKen Lay, Enron: Convicted on 10 counts, died before serving sentenceJeff Skilling, Enron: 24 years in prisonAndrew Fastow, Enron: 10 years in prisonDennis Koslowski,...
  • Fannie/Freddie Scandal Dwarfs Enron, WorldCom (combined - where are the hearings & investigations?)

    10/01/2008 4:19:19 PM PDT · by Libloather · 7 replies · 943+ views
    Rush Limbaugh .com ^ | 10/01/08 | The Maha
    Fannie/Freddie Scandal Dwarfs Enron, WorldCom RUSH: Investor's Business Daily today has just a great, great editorial: "Should Congress Be 'Perp-Walked'?" They say, "A federal grand jury in New York is probing the accounting shenanigans at Fannie Mae and Freddie Mac. It's about time, and we hope it doesn't end there. Remember the early 2000s, when companies such as WorldCom, Enron, Tyco and Xerox suddenly and spectacularly were revealed to have been cooking their books? Remember the glee expressed by Washington politicians, especially Democrats, as they watched CEOs and their underlings get perp-walked out of their buildings and into federal custody?...
  • Who Are We To Say Who Is Overpaid?

    12/29/2006 12:13:05 PM PST · by shrinkermd · 60 replies · 1,312+ views
    Investor's Business Daily ^ | 29 December 2006 | Thomas Sowell
    Perhaps it is one of the fruits of the “self-esteem” emphasis in our schools that so many people feel confident to voice strong convictions about things they know little or nothing about — or, worse yet, are misinformed about. One of the hardest things for anyone to be informed about is the value of someone else’s productivity. Yet there are cries from all directions that some people are being paid “too much” and others “too little.” Judging Worth Who can possibly be better informed about the value of what someone else produces than those who use the goods or services...
  • Apple ‘falsified’ files on Jobs’ options

    12/27/2006 6:49:37 PM PST · by driftdiver · 124 replies · 1,849+ views
    Financial Times ^ | Dec 28, 2006 | Richard Walters
    Steve Jobs, chief executive of Apple Computer, was handed 7.5m stock options in 2001 without the required authorisation from the company’s board of directors, according to people familiar with the matter. Records that purported to show a full board meeting had taken place to approve Mr Jobs’ remuneration, as required by Apple’s procedures, were later falsified. These are now among the pieces of evidence being weighed by the Securities and Exchange Commission as it decides whether to pursue a case against the company or any individuals over the affair, according to these people.
  • Judge OKs $4.52 billion payout to WorldCom investors

    11/30/2006 12:33:42 AM PST · by xtinct · 10 replies · 616+ views
    Reuters ^ | 11-30-06 | staff
    NEW YORK (Reuters) - The Manhattan federal judge overseeing the main class-action lawsuit over WorldCom Inc.'s collapse on Wednesday authorized the payment of up to $4.52 billion to aggrieved investors. U.S. Judge Denise Cote of the U.S. Court for the Southern District of New York said the distribution should be made "as soon as practicable." More than one dozen investment banks, including Citigroup Inc. and JPMorgan Chase & Co., agreed to pay about $6.15 billion to resolve allegations that they helped WorldCom sell bonds when they should have known the phone company was concealing its true financial condition. The remaining...
  • How many SEC Probes Issued Under Bush? Clinton

    07/11/2002 2:31:17 PM PDT · by Hillary'sMoralVoid · 19 replies · 377+ views
    07/11/02 | HMV
    It seems that the SEC is probing everyone these days, why did we hear so little about SEC probes under Clinton? Is there data available suggesting that the Bush administration has been more agressive with the SEC than Clinton?
  • Clinton Operatives Behind Anti-Bush Ad Campaign

    07/10/2002 8:13:10 AM PDT · by Paul Atreides · 73 replies · 1,769+ views
    Newsmax.com ^ | July 10, 2002 | Carl Limbacher
    Former Clinton political hitman James Carville, who recently touted New York Sen. Hillary Clinton for a 2008 presidential run, is reportedly behind an advertising campaign attacking President Bush for his 1990 sale of Harken Energy stock as well as his ties to the oil industry in general. American Family Voices, a group described by the New York Times as "secretive," has paid to run a 30-second commercial on cable news programs in Washington, D.C., and in New York through Thursday. The ad blasts President Bush as "sly like a fox" for talking down his dealings with Harken Energy, which Democrats...
  • Wall Street Bonuses Hit $21.5 Billion

    01/11/2006 5:58:18 PM PST · by ARealMothersSonForever · 186 replies · 1,698+ views
    AP via Yahoooooo ^ | January 11, 2006
    NEW YORK - Bonuses at Wall Street firms climbed to a projected record of $21.5 billion last year as revenue grew, according to the New York state comptroller's office. Comptroller Alan Hevesi said Wednesday that 2005's bonus tally was $2 billion more than the old record, which was set in 2000. In 2004, Wall Street bonuses came to an estimated $18.6 billion. Last year's average bonus was pegged at $125,500, also a record, Hevesi said. Revenue at Wall Street firms rose 44.5 percent through the first three quarters of 2005, climbing to the highest level since 2000, the year when...
  • CEO Salaries Cry Out for Reform

    01/04/2006 4:12:12 AM PST · by PurpleMountains · 3 replies · 337+ views
    From Sea to Shining Sea ^ | 1/04/06 | Purple Mountains
    One of the things that makes me a moderate conservative rather than an extreme-right conservative is that I have never forgotten something my business-law college professor told us – that when government passes a new law or regulation that places limits on what businessmen or markets can do, it’s always because some people acted to excess and spoiled everything. Although the situation has changed slightly for the better, this kind of condition clearly exists in the area of top-executive pay (that of CEOs), and in the aftermath of Enron, WorldCom, Tyco and Global Crossing, cries out for some action.
  • Ebbers sentenced to 25 years in prison

    07/13/2005 9:00:37 AM PDT · by Imani · 67 replies · 2,075+ views
    MSNBC ^ | 07/13/2005 | Staff
    Former Worldcom Chief Executive Bernard Ebbers was handed a 25-year prison term for directing the biggest accounting fraud in corporate history, leaving thousands of investors empty-handed. Ebbers, who built a small Mississippi-based long distance company into a telecommunications powerhouse, was found guilty on March 15 on all charges — one count of conspiracy, one count of securities fraud and seven counts of false regulatory filings. But he could also be a charming and folksy CEO, who preferred cowboy boots to suits, opened shareholder meetings with a prayer, ate lunch in the cafeteria and ran a company that had become a...
  • Ebbers to Forfeit Assets in Settlement- Forfeit Nearly All His Assets in WorldCom Settlement

    06/30/2005 8:52:16 AM PDT · by zarf · 9 replies · 557+ views
    AP via Yahoo ^ | 6/30/05 | Erin McClam
    NEW YORK (AP) -- Former WorldCom chief Bernard Ebbers will pay $5 million and transfer nearly all his assets into a liquidation trust to settle civil charges related to the company's accounting fraud, the government said Thursday. Federal prosecutors said the trust, which would sell off Ebbers' assets, would be worth up to $40 million. As a result, prosecutors said they would not seek restitution when Ebbers is sentenced July 13. The settlement springs from a class-action suit brought by investors against former WorldCom executives and board members, plus investment banks that underwrote WorldCom securities and auditing firm Arthur Andersen....
  • WorldCom's successor (MCI) will pay $100 million to state (Mississippi)

    05/09/2005 11:22:07 AM PDT · by WKB · 17 replies · 587+ views
    Sun Herald ^ | Mon, May. 09, 2005 | SHELIA BYRD
    JACKSON, Miss. - MCI Inc. will pay $100 million in cash to cover back taxes that its predecessor WorldCom Inc. owed Mississippi, state Attorney General Jim Hood announced Monday. The telecommunications company also will turn over its former headquarters building in downtown Jackson to the state as part of the settlement, Hood said. The building has not been appraised, he said. WorldCom collapsed in 2002 amid revelations of an $11 billion accounting fraud to inflate earnings and hide expenses. WorldCom, which got its start in Mississippi, was once headquartered in Jackson and later moved to nearby Clinton. MCI is now...
  • Fannie Mae's bailout tab

    04/07/2005 11:25:11 AM PDT · by JZelle · 2 replies · 418+ views
    The Washington Times ^ | 4-7-05 | Dan Gainor
    Journalists love a scandal. All too often that means the rest of us get fed round-the-clock coverage of Michael Jackson or enough celebrity gossip to make even a Hollywood agent blush. Sometimes that scandal is closer to home, and what's closer to your home than your mortgage? Fannie Mae, the government-sponsored mortgage association, has been battling a mounting scandal since last year. It has accounting errors of about $11 billion. That's more than nineteenfold Enron's $567 million error. Then there's a Justice Department inquiry, a Securities and Exchange Commission investigation, and an Office of Federal Housing Enterprise complaint.
  • Former WorldCom CEO Guilty on All Counts

    03/15/2005 2:35:44 PM PST · by traumer · 12 replies · 538+ views
    Yahoo ^ | March 15, 2005
    Jury Finds Ex-WorldCom CEO Bernard Ebbers Guilty on All Counts in Connection With Massive Fraud NEW YORK (AP) -- Bernard Ebbers, the once-swaggering CEO of WorldCom, was convicted Tuesday of engineering the largest corporate fraud in U.S. history -- an $11 billion accounting scandal that capsized the big telecom company three years ago. The verdict marked a colossal fall for Ebbers, who had turned a humble Mississippi long-distance provider into a global telecommunications power, swallowing up companies along the way and earning the nickname "Telecom Cowboy." A federal jury in Manhattan returned guilty verdicts on all nine counts, including securities...
  • Ebbers guilty - Ex-WorldCom chairman guilty on all nine counts in massive accounting fraud.

    03/15/2005 9:31:26 AM PST · by Daus · 154 replies · 4,498+ views
    CNN ^ | 3/15/2005 | NA
    NEW YORK (CNN/Money) - Bernard Ebbers, the former CEO of WorldCom, was found guilty Tuesday for his role in the mammoth accounting scandal that brought the company down two and half years ago. A federal jury in New York, on its eighth day of deliberations, convicted Ebbers on all nine counts that he helped mastermind a $11 billion accounting fraud at WorldCom, now known as MCI.
  • Jurors Deliberate in WorldCom Fraud Case

    03/05/2005 12:53:26 AM PST · by Mo1 · 198+ views
    NY Post ^ | Mar 5, 2005 | ERIN McCLAM
    NEW YORK (AP) -- In their first day of deliberations, jurors in the trial of former WorldCom chief Bernard Ebbers asked to review key testimony from a star prosecution witness. The jury, which spent five hours Friday discussing the case, must determine whether Ebbers orchestrated the $11 billion accounting scheme that drove WorldCom into bankruptcy three years ago
  • U.S. Business Counters Some Reforms

    02/20/2005 11:13:56 AM PST · by anymouse · 2 replies · 247+ views
    Reuters ^ | February 20, 2005 | Kevin Drawbaugh
    Sensing public outrage over business corruption in America is waning, some in the corporate community are seizing on the shift in mood to try to roll back reforms, say top U.S. officials and academics. "There's clearly a rearguard action going on," said Maryland Democratic Sen. Paul Sarbanes in an interview three years after the Enron debacle that led to his co-authoring of landmark corporate governance and accounting reforms in 2002. Business scandals are now daily fare for Americans, from the prison sentencing on Friday of a former top Boeing Co. executive to revelations of abusive trading in the mutual fund...
  • MCI Rewrote The Rulebook

    02/15/2005 7:21:11 AM PST · by advance_copy · 28 replies · 552+ views
    Washington Post ^ | 2/15/05 | Caroline E. Mayer
    The fighting entrepreneurial spirit was a hallmark of the man who helped found MCI -- William G. McGowan. McGowan, a financier who was brought in to save the nearly bankrupt MCI Communications Corp., in 1968 was a scrappy fighter determined to take on the giant AT&T, which at that time had monopoly control over all telephone service in the United States. Early in his bid to offer long-distance service, McGowan concluded that the company needed to be in Washington, where it could monitor its battles in the courts and Congress and before the Federal Communications Commission. Until then, the only...
  • WorldCom's Ebbers Fingered by Former Right-Hand Man

    02/07/2005 7:00:55 PM PST · by wagglebee · 9 replies · 606+ views
    Reuters ^ | 2/7/05 | Paul Thomasch
    NEW YORK (Reuters) - Former WorldCom Inc. finance chief Scott Sullivan began his long-awaited testimony on Monday by implicating ex-CEO Bernard Ebbers in an $11 billion accounting scandal that drove the telecommunications company into the largest U.S. bankruptcy. "I falsified the financial statements of the company," Sullivan admitted under questioning from prosecutor William Johnson, who then asked the government's star witness to name anyone else involved in the crime. Sullivan named five, including Ebbers. He was the first witness during the trial to directly link the one-time chief executive to the accounting fraud he stands accused of orchestrating. Sullivan also...
  • WorldCom former outside directors to pay 54 mln usd to settle suit - report

    01/05/2005 8:08:03 PM PST · by wagglebee · 4 replies · 216+ views
    Yahoo News ^ | 1/6/05 | AFX
    NEW YORK (AFX) - Ten former outside directors for the former WorldCom Inc have agreed in principle to pay 54 mln usd, including 18 mln out of their own pockets, to settle their portion of a class-action lawsuit brought by bondholders and shareholders in the wake of the firm's accounting scandal, the Wall Street Journal reported, citing people familiar with the matter. The remaining 36 mln usd will be paid by the directors' liability insurers, the sources were quoted as saying. Under the accord, the 18 mln usd to be paid by the former directors represents about 20 pct of...
  • Bob Dole Slams Kerry

    08/23/2004 8:31:55 AM PDT · by stevejackson · 21 replies · 2,137+ views
    www.netwmd.com ^ | August 23, 2004 | Andrew L. Jaffee
    Bob Dole Slams Kerry By Andrew L. Jaffee, August 23, 2004 Home   Search   Forum   Terms Nothing has really changed for Democratic hopeful John Kerry, except that real war veterans, like Bob Dole, are questioning the “superficial wounds” and resulting “medals” he received during four (4) months service in Vietnam. Kerry is still flailing, trying to cover up a career punctuated by extreme left-wing politics and flip-flopping by talking to voters about his military service. He squandered his acceptance speech at the Democratic National Convention by trying to convince Americans that his tour of duty in Vietnam will make him a great commander...
  • Kerry Prevaricates on War Against Corporate Fraud

    07/08/2004 7:29:50 AM PDT · by stevejackson · 3 replies · 860+ views
    www.netwmd.com ^ | July 8, 2004 | Andrew Jaffee
    Ken Lay of Enron Indicted and Arrested By Andrew L. Jaffee, July 8, 2004 Home   Search   Forum   Terms Enron’s ex-Chairman of the Board has been indicted and arrested on charges connected with his former company’s implosion in 2001. Corporate executives at Enron engaged in all sorts of financial manipulations to pump up the company’s stock price. They created complex “partnerships” to hide company debt from shareholders. In 1998, Enron’s share price was at about $20. By 2000, it hit $90. By 2001, the company’s stock was worthless. Enron’s collapse wiped out billions in shareholder value and employee pensions. Democratic Presidential hopeful John...
  • MCI cutting 4,000 jobs, partly blames 'do not call' list

    03/26/2004 5:38:41 PM PST · by traumer · 18 replies · 159+ views
    USA Today ^ | 3/26/2004
    <p>McLEAN, Va. (AP) — Bankrupt telecommunications company MCI said Friday it will cut 4,000 jobs — more than 7% of its workforce — and closing three call centers because of cost-cutting pressures and fallout from the national "do not call" registry. The company had announced in January that it was expecting to reduce overall costs by 15% to 20%, but did not mention specifically that jobs would be cut.</p>
  • MCI Lays Off 4,000, Cites Do Not Call List

    03/26/2004 5:09:54 PM PST · by El Conservador · 139 replies · 392+ views
    Yahoo! News ^ | March 26, 2004 | MATTHEW BARAKAT
    McLEAN, Va. - Bankrupt telecommunications company MCI said Friday it is cutting 4,000 jobs — more than 7 percent of its work force — and closing three call centers because of cost-cutting pressures and fallout from the national Do Not Call registry. The company had announced in January that it was expecting to reduce overall costs by 15 percent to 20 percent, but did not mention specifically that jobs would be cut. The centers being closed are located in Denver, Phoenix and Niles, Ohio. Jobs are also being reduced at MCI facilities in Alpharetta, Ga., Colorado Springs, Colo. and Springfield,...
  • Reuters MCI Restates 2001 and 2000 Earnings Friday March 12, 8:26 am ET

    03/12/2004 5:44:13 AM PST · by fatrat · 1 replies · 187+ views
    NEW YORK (Reuters) - MCI (Other OTC:WCOEQ.PK - News) said Friday its financial restatement for 2001 and 2000 resulted in a net reduction of $74.4 billion to its previously reported pre-tax results. The restatement included revenues, expenses and earnings and the write-downs of assets and adjustments to liabilities, the bankrupt telecommunications company said. MCI, whose legal name is WorldCom, said that consolidated revenues were $37.7 billion in 2001 and $39.3 billion in 2000. It had a net loss of $15.6 billion in 2001 and $48.9 billion in 2000, including the restatement adjustments, it said in a regulatory filing.
  • Former WorldCom CEO Ebbers to face fraud charges: report

    03/02/2004 8:51:24 AM PST · by retrokitten · 12 replies · 153+ views
    Yahoo ^ | 3/2/04 | AFP
    NEW YORK (AFP) - Bernie Ebbers, former chief executive of telecom giant WorldCom, was expected to be charged with fraud and conspiracy in connection with the biggest bankruptcy in US history, media reported. Citing Justice Department (news - web sites) sources, New York's NewsChannel 4 said US Attorney General John Ashcroft (news - web sites) was expected to announce the charges here later Tuesday. Ashcroft scheduled a news conference for 1:00 pm (1800 GMT) in New York on a criminal matter, according to a Justice Department statement. WorldCom, the number-two US long-distance phone carrier, declared bankruptcy in July 2002. The...
  • Kausfiles- Kerry Hypocrisy Watch: He was on their [Enron & Worldcom's] side! (& Other NH Poll News)

    01/24/2004 4:09:50 PM PST · by Timesink · 2 replies · 166+ views
    Kausfiles ^ | January 24, 2004 | Mickey Kaus
    kausfiles Kerry Hypocrisy Watch He was on their side! By Mickey KausUpdated Saturday, Jan. 24, 2004, at 3:49 PM PT If none of Kerry's opponents makes a good negative ad against him based on the information in this Jonathan Cohn article, then the Iowans will have won! ... On the stump this week, Kerry portentously attacked special interests and complained that retirement accounts have been "decimated" by the "scandals of Enron and Worldcom," but Cohn makes it clear that an overbroad law that Kerry supported limiting the ability of investors to sue over fraudulent accounting practices contributed to the Enron...
  • Our Most 'Corporate' President?

    01/21/2004 6:29:36 AM PST · by OESY · 16 replies · 153+ views
    Wall Street Journal ^ | January 21, 2004 | HOLMAN W. JENKINS, JR.
    <p>His drubbing in Iowa won't change one thing: Howard Dean set the tone of the Democratic campaign on an issue even beyond Iraq, and that's insisting George Bush is uniquely "beholden to corporate interests." Here is Mr. Dean blaming the president for the landmark business scandals of our time: "Our business culture is a disaster in this country. And this president's largely responsible for it . . . He just winks and nods."</p>
  • MCI Names New Board Members -- includes former Clinton U.S. Deputy Attorney General Eric Holder

    08/29/2003 3:08:42 PM PDT · by TroutStalker · 18 replies · 344+ views
    The Wall Street Journal ^ | Friday, August 29, 2003 | SHAWN YOUNG
    <p>MCI, formerly known as WorldCom Inc., named five new members to its board of directors Friday and said it expects to appoint three more before it emerges from Chapter 11 bankruptcy-court protection, which it hopes to do later this year.</p>
  • Okla. Files Charges Vs. WorldCom, Ex-CEO

    08/27/2003 12:02:28 PM PDT · by Calpernia · 6 replies · 203+ views
    Associated Press ^ | August 27, 2003 | By RON JENKINS, Associated Press Writer
    OKLAHOMA CITY - The Oklahoma attorney general Wednesday filed the first criminal charges against former WorldCom Inc. chief Bernard Ebbers, part of a wider complaint that also named the telecommunications company now known as MCI and other one-time top executives. The complaint accuses Ebbers, the other executives and the company of violating state securities laws by giving false information to investors in 2000. WorldCom collapsed into the nation's largest bankruptcy last year amid an accounting scandal that has grown to $11 billion. "It is rare that we name a company in a criminal complaint, but in this case it is...
  • WorldCom's Tough New Plan

    08/26/2003 7:32:50 PM PDT · by Calpernia · 7 replies · 239+ views
    Fool.Com ^ | August 26, 2003 | Motley Fool
    WorldCom -- soon to be MCI -- received its blueprint for emerging from Chapter 11 today, and, boy, is it a doozy. The plan from court-appointed corporate monitor Richard Breeden contains no less than 78 "recommendations" designed to keep the company from repeating the past abuses under Bernie Ebbers that led to the most massive accounting fraud in history. Here are the highlights: A separation of the chairman and CEO positions. No stock option grants for at least five years; any thereafter must be expensed. Dividends initially targeted at 25% of net income. At least one new director to be...
  • MCI To Lay-off 2,400

    08/21/2003 7:42:12 AM PDT · by retrokitten · 22 replies · 384+ views
    New York Post ^ | 8/21/2003 | BEN SILVERMAN
    August 21, 2003 -- Embattled telecom giant MCI will lay off about 2,400 workers in the next three months as the company's battle to stay alive gets tougher each day. The first round of layoffs will be announced on Aug. 29, with subsequent layoffs announced in September and October, sources familiar with the situation told The Post. Although the company declined to comment on any workforce reduction, MCI did say its restructuring continues. "As we continue to restructure our operations to better position the company going forward, including improved integration and automating certain functions, we expect to continue to add...
  • MCI May Make More Restatements

    08/19/2003 4:56:52 AM PDT · by AntiGuv · 1 replies · 163+ views
    Reuters ^ | August 19, 2003 | Reuters
    NEW YORK (Reuters) - MCI said on Tuesday its auditor found weaknesses in the company's internal controls that could lead to additional restatements of financial results as the No. 2 U.S. long-distance telephone carrier tries to emerge from bankruptcy. In a filing with the U.S. Securities & Exchange Commission , MCI, whose legal name is WorldCom Inc., also said it was withdrawing all of its previous financial forecasts. "KPMG has identified a substantial number of material weaknesses in the company's internal controls," MCI said in the filing. "Although the company has begun work to address these deficiencies, a significant amount...
  • WORLDCOM'S SULLIVAN WANTS LIGHT SENTENCE

    08/16/2003 10:22:26 AM PDT · by the_greatest_country_ever · 22 replies · 188+ views
    New York Post ^ | August 13, 2003
    <p>August 13, 2003 -- Former WorldCom Inc. Chief Financial Officer Scott Sullivan, who's accused of leading a multibillion-dollar accounting fraud, says he should get no more than 12 1/2 years in prison if convicted, about half what's called for under U.S. guidelines.</p>
  • AT&T steps up MCI charges: Alleges firm routed US military calls through Canada

    08/07/2003 2:16:49 AM PDT · by sarcasm · 12 replies · 213+ views
    <p>AT&T, WorldCom's larger rival, made the claims in a filing with the US Bankruptcy Court overseeing WorldCom's Chapter 11 reorganization. WorldCom said it carried calls appropriately. The new allegations add to claims by AT&T last week that WorldCom improperly routed State Department and Postal Service traffic through Canada. The calls were put on AT&T's network allegedly to avoid local-line fees that were unwittingly paid by AT&T. WorldCom's rivals are seeking to derail the company's effort to emerge from the biggest bankruptcy this year.</p>
  • Sprint may be next to lose gov't pacts

    08/06/2003 2:19:52 AM PDT · by kattracks · 2 replies · 136+ views
    New York Daily News ^ | 8/06/03 | Bloomberg News
    And then there were two. Sprint, the third-largest long-distance phone company, may join MCI/WorldCom - in being suspended from winning federal contracts. Government investigators recommended considering that Sprint be barred from federal work for overbilling practices. The move is "unprecedented and totally without merit," Sprint said in a statement. Sprint, which gets more than $600 million annually from the U.S., agreed in June to pay $5.2 million to settle Justice Department charges it defrauded federal clients. Sprint didn't admit to wrongdoing. The General Services Administration that month initiated similar proceedings against MCI, which last week was suspended from federal contracts...
  • US bans WorldCom from new govt contracts

    07/31/2003 5:46:46 PM PDT · by Courier · 17 replies · 230+ views
    Reuters ^ | 7/31/2003
    US bans WorldCom from new govt contracts Thursday July 31, 7:58 pm ET By Jeremy Pelofsky and Jessica Hall WASHINGTON/PHILADELPHIA, July 31 (Reuters) - WorldCom Inc. suffered another blow on Thursday after a U.S. agency said the bankrupt telephone company could no longer compete for new U.S. government contracts after finding it lacked proper internal controls and business ethics. The General Services Administration said it would review whether the temporary ban on WorldCom, which is embroiled in an $11 billion accounting scandal, should be extended for up to three years. Meanwhile, the U.S. Bankruptcy Court for the Southern District of...
  • MCI Faces Federal Fraud Inquiry on Fees for Long-Distance Calls (Worldcom SCUM Update)

    07/26/2003 6:18:40 PM PDT · by Timesink · 25 replies · 478+ views
    The New York Times ^ | July 25, 2003 | Stephen Labaton
    July 27, 2003 MCI Faces Federal Fraud Inquiry on Fees for Long-Distance CallsBy STEPHEN LABATON ASHINGTON, July 26 — Federal prosecutors have opened an investigation in the United States and Canada into accusations that MCI, the nation's second-largest long-distance carrier, defrauded other telephone companies of at least hundreds of millions of dollars over nearly a decade, people involved in the inquiry said. The central element of MCI's scheme, people involved in the inquiry said, consisted of disguising long-distance calls as local calls to avoid paying special access tariffs to local carriers across the country. Those tariffs are the largest...
  • WorldCom settlement approved - $750 million

    07/07/2003 12:43:25 PM PDT · by MeekOneGOP · 4 replies · 198+ views
    Washington Business Journal ^ | July 7, 2003 | Jeff Clabaugh
    Washington Business Journal - July 7, 2003http://washington.bizjournals.com/washington/stories/2003/07/07/daily5.html LATEST NEWS 3:03 PM EDT Monday WorldCom settlement approved Jeff Clabaugh Staff ReporterIn what will be the largest-ever fine in an accounting fraud case, Ashburn-based WorldCom will pay $750 million to settle a Securities and Exchange Commission's fraud investigation. A bankruptcy judge in New York approved the settlement Monday. Despite calls from competitors and from investor-advocates for a larger fine, the SEC had pushed for approval of the settlement, citing the number of investor lawsuits that are still pending. Of the $750 million, $500 million will go to investors in the form...
  • The Real Deal on the WorldCom Deal

    06/11/2003 7:04:37 PM PDT · by proxy_user · 2 replies · 189+ views
    townhall.com ^ | Joe Scarborough
    All last week, we had mean Martha Stewart splashed across the front page of newspapers and our TV’s. Her crime? Possibly lying about possibly getting inside information that could have possibly made her $200,000. This week, Washington lawmakers and the Pentagon just awarded a $45 million contract— that comes straight out of your wallet— to a company that defrauded Americans out of tens of billions of dollars.       WorldCom is the company that the Feds are paying to provide phone service to Iraq, despite the fact that this past year, they filed the largest bankruptcy in the history of the United...
  • Why we're mad at Martha.

    06/11/2003 11:16:43 AM PDT · by RAT Patrol · 27 replies · 415+ views
    The Indianapolis Star ^ | June 10, 2003 | Andrea Neal
    <p>Martha made us feel guilty. Now it's her turn.</p> <p>That's my best explanation for the venom with which politicians and prosecutors have pursued Martha Stewart and the glee with which critics have greeted her arrest.</p> <p>Stewart is being burned at the stake for conduct we all know is commonplace (among men) in the corporate world.</p>
  • Malkin: The mother of all financial scandals

    06/10/2003 9:11:54 PM PDT · by cgk · 28 replies · 2,320+ views
    Townhall.com ^ | 6-11-03 | Michelle Malkin
    The mother of all financial scandalsMichelle Malkin (archive) June 11, 2003 | Print | SendMartha Stewart is a too-easy target, an overstuffed pink pinata swinging in the wind, waiting to be thwacked by every last critic of capitalist excess. But the stock-dumping doyenne is no match for the real mother of all brewing financial scandals. That moniker belongs to the twin behemoths Fannie Mae and Freddie Mac.Who, you say? Unlike Martha, or the three-piece-suited villains of Enron or Tyco or WorldCom, Fannie Mae and Freddie Mac haven't been plastered all over the tabloids and prime-time TV. That's because they are...
  • New MCI/WorldCom Reports Confirm Government Should Stop Doing Business With Company

    06/10/2003 7:29:07 PM PDT · by Courier · 12 replies · 182+ views
    PRNewswire ^ | June 10, 2003
    WASHINGTON, June 10 /PRNewswire/ -- Two reports released today provide proof that executives and others at MCI/WorldCom committed acts of fraud and deception that are sufficient to exclude the company from receiving new government contracts. The reports come on top of calls from Citizens Against Government Waste (CAGW) and Senate Governmental Affairs Committee Chairman Susan Collins (R-Maine) to investigate why the government has failed to stop using taxpayer dollars to do business with the company. "While the evidence continues to mount against MCI, the government keeps on rewarding the company with new contracts," CAGW President Tom Schatz said. "MCI committed...
  • WORLDCOM STOCKHOLDERS' BOYCOTT GROWS BY OVER 1000 PER DAY

    06/06/2003 12:01:14 PM PDT · by grania · 26 replies · 319+ views
    MSNBC Online | June 6, 2003
    WorldCom Stockholders' Boycott Grows By Over 1,000 per Day June 06, 2003 1:50:00 PM ET CHICAGO, June 6 /PRNewswire/ -- A group of WorldCom stockholders has announced that over 4,500 customers of WorldCom/MCI Inc., (OTC Bulletin Board: WCOEQ, MCWEQ), intend to cancel their long distance or internet service if the company's current bankruptcy reorganization plan is approved. "There seems to be a groundswell of anger at big money's use of the bankruptcy process to take assets from individual stockholders," said Neal Nelson, Spokesperson for the WorldCom/MCI Stockholders Group, "We are receiving over 1,000 emails a day indicating that people intend...
  • WorldCom Report Says Ebbers Had Role In Inflating Revenue

    06/05/2003 11:32:40 PM PDT · by HAL9000 · 144+ views
    Dow Jones News Service | June 6, 2003
    A long-awaited report on the accounting fraud at WorldCom Inc. -- the largest in U.S. history -- will conclude for the first time that former Chief Executive Bernard J. Ebbers played a role in the company's effort to improperly boost revenue to meet Wall Street expectations, people familiar with the matter told The Wall Street Journal. The expansive report, due to be released Monday, is the product of an independent investigation commissioned by the company and led by William McLucas of the law firm of Wilmer Cutler & Pickering. It details how, starting in 1999, the company used accounting...
  • WorldCom OKs $500M Investor Settlement

    05/19/2003 2:33:41 PM PDT · by El Conservador · 2 replies · 248+ views
    Yahoo! News ^ | May 19, 2003 | LARRY NEUMEISTER
    NEW YORK - WorldCom Inc. has agreed to pay investors a record $500 million to settle civil fraud charges over its $11 billion accounting scandal, which was the biggest in U.S. corporate history, lawyers for the company and the federal government announced Monday. The fine would be by far the largest the Securities and Exchange Commission (news - web sites) has ever imposed in connection with a financial fraud, SEC lawyer Peter Bresnan said. WorldCom, a bankrupt telecommunications titan that wants to be renamed MCI, is accused of falsifying balance sheets to hide expenses and inflate earnings. Attorneys for the...
  • MCI (WorldCom) Expected to Pay Massive Fine in SEC Deal

    05/18/2003 9:32:09 PM PDT · by HAL9000 · 3 replies · 237+ views
    Dow Jones News Service | May 18, 2003 | Rebecca Blumenstein and Deborah Solomon
    NEW YORK -- The Securities and Exchange Commission and MCI, formerly known as WorldCom Inc. , are expected to announce as early as Monday a final agreement to settle charges that the telecom company misled investors with more than $11 billion of accounting fraud, according to people familiar with the matter, the Wall Street Journal has learned. As part of the settlement pact, MCI will pay the largest fine ever levied by the SEC against a corporation that isn't a broker-dealer, these people said. The fine is expected to be "exponentially larger" than the $10 million fine levied against...
  • Investor Releases His Legal Pleading Filed in the United States Bankruptcy Court

    05/18/2003 3:30:14 PM PDT · by Calpernia · 10 replies · 568+ views
    Former WorldCom/MCI Employee ^ | May 15, 2003 | Richard A. Dahms
    PRESS RELEASE FORMER LONG TIME EMPLOYEE SLAMS WORLDCOM/MCI REORGANIZATION PLAN Investor Releases His Legal Pleading Filed in the United States Bankruptcy Court BOWIE, MARYLAND, May 15, 2003 – Richard A. Dahms, an early employee of MCI Communications Corporation, announced today he has filed objections in the United States Bankruptcy Court to the WorldCom re-organization plan. According to Dahms, the re-organization plan fails to address defrauded shareholders. “WorldCom corporate raiders Bernie Ebbers and Scott Sullivan trashed one of America’s great companies after they acquired number two long distance company MCI – and I’m mad as hell”, said Dahms. “I personally know...