Worldcom Scandal

Submitted By mayab63
Words: 801
Pages: 4
Open Document
WorldCom

The WorldCom Scandal
Corporate headquarters:
Ashburn, VA
EXECUTIVES
Name
Occupation
Birth
Death
Known for
Vint Cerf
Scientist
23-Jun-1943 Co-Designed Internet's TCP-IP protocol
Bernard Ebbers
Business
27-Aug-1941 CEO of WorldCom, 1985-2002
PAST BOARD MEMBERS OR DIRECTORS
Name
Occupation
Birth
Death
Known for
Dennis R. Beresford
Business
23-Nov-1938 FASB Chairman, 1987-97
James Q. Crowe
Business
c. 1950 CEO of Level 3 Communications
EXTRANEOUS
Name
Occupation
Birth
Death
Known for
Richard C. Breeden
Government
6-Dec-1949 SEC Chairman, 1989-93

In 1983 two business men by the names of Murray Waldron and William Rector developed a plan to start a discount long distance service called LDDS. One of the first investor they acquired in 1985 was Bernard John “Bernie” Ebbers who became chief executive officer of LDDS. The company became public in 1989 through the acquisition of Advantage Companies Inc., In 1993
LDDS merged with other companies to become the United States fourth largest long-distance network. The company then went on to acquire even more telecommunication companies from
1993 to 1995. One of the companies by the name of Williams Telecommunication was a voice and data transmission company that was acquired for $2.5 billion. After the purchase of this company LDDS changed its name to WorldCom Inc. as we now know it today.
In 1998 WorldCom merged with three companies, and one of them was MCI which was
Purchased for $40 billion one of the largest in history in the 1900’s. The company tried to merge with the Sprint Corp. but was blocked by the US and European regulators in 2000. In March of
2002 the U.S. Securities and Exchange Commission requested information from WorldCom.
After the request WorldCom announced they would cut about 3,700 jobs or 6 percent of it’s staff and 4 percent of its overall work force. This started a trickle effect of other companies cutting their long-term and short-term corporate credit ratings to them. The Chief Executive Officer
Bernard Ebbers resigns and the Vice Chairman John Sidgmore took over the position. The companies debt rating is considered to be of junk status at that time. The company would then go onto announce that they had overstated earnings in 2001 and the first quarter of 2002 by more than $3.8 billion. The accounting maneuver that cause this was by the company classifying payments for using other companies’ communications networks as capital expenditures when they really where expenses. The companies was able to manipulate the books for years before anything was detected. Because of this scandal consumers lost their money and the pension fund companies lost money by investing in WorldCom. The shareholders were unable to recover from the fall of the company, the NASDAQ D-listed WorldCom and the index year went from
5000 2000 to index year 1500 2002. Because of all of this the company did not exhibit social responsibility while in operation because greed
Show More

Related Documents: Worldcom Scandal

Essay about World Com Assignment

ACCT7102 Individual Case Study Assignment: ‘Accounting Fraud at WorldCom’ 1. (a) Earnings Management is the accounting process of deliberately manipulating a company’s financial report to match or make a target. The procedure can also be considered income smoothing. The idea behind this is to even out the years profit and loss to show consistent fluid movement of sales rather than have periods of spiked sales or losses. This is achieved by adding or removing cash from reserve accounts, also…

Words 1998 - Pages 8

Essay on Culture and World Business Culture. Com

point across and how to conduct business. “Verbal communication in Brazil can often be viewed as being theatrical and over-emotional by those cultures which place a great significance on the maintenance of professional reserve in all situations” (World business culture.com). “Getting to know the diverse workplace goes beyond new employee orientation. The diverse workplace context requires professional excellence fostered by careful self-inventory, adjustment, and mutual respect” (Quintanilla & Wahl…

Words 375 - Pages 2

Miniresearch Paper

World Wide Web Collapse of the Bubble Fundamentals of E-Commerce In 1993 British computer scientist and engineer, Sir Tim Berners-Lee created something that would forever change the world; the World Wide Web. The World Wide Web, abbreviated WWW is a system of interlinked hypertext documents accessed via the Internet. Not only did the World Wide Web enable the spread of information over the Internet easily and in a format that was free for everyone to use, but it’s what many believe made…

Words 896 - Pages 4

Online shopping Essay

Online shopping can be both intimidating and frustrating to those who are new to the experience, and even to some who are experienced users. I have compared three online soccer stores, soccer. Com, World soccer shop. Com, and pro direct soccer. Com, basing them off four simple criteria. First of all presentation, second ease of navigation, thirdly compabltabiltiy across different platforms, and finally the security of the website.All are very different topics, but have a huge effect on the shopping…

Words 329 - Pages 2

Review: Men And Women Cheerleaders

useum/exhibits/show/football/transit ions-of-the-1960s-and-t/the-end-ofan-era/ Men’s Cross Country http://www.uwoshkoshtitans. com/sports/mxc/2013-14/roster? sort=highschool Men and Women Cheerleaders http://www. uwosh. edu/march1/70 s/athletics/chee rleaders.html Women’s Basketball http://www. uwosh. edu/march1/70s/ athletics/recreati on.html Women’s Volleyball http://uwoshkoshtitans. com/sports/wvball/2013-14/roster http://www.lib.uwo. ca/archives/virtualexhibits/metrasm useum/exhibits/show/football/transit…

Words 358 - Pages 2

Thomas Paine Accomplishments

born in the year 1737 (History. Com Staff. "Thomas Paine"). As he grew up, he started to have a major passion for writing where he expressed his ideas. When he was around 13 years old, he would stay home to shipbuild with his father ("Thomas Paine Biography"). Thomas Paine had many hardships in his life. One of them is that his…

Words 827 - Pages 4

Communication Students Reach Out

Communication Students Reach Out By AKILAH HAWKINS-LEWIS Staff Writer Published: Monday, November 22, 2010 Updated: Sunday, November 21, 2010 22:11 Students in COM 317 are bringing creativity to the lives of hundreds of elementary school children at Buffalo Public School 30 on Monday. "This is a night designed specifically for the kids and their families," said Adrian Finch, a senior communication major and team leader of the public relations and marketing team. "It's a great opportunity for…

Words 507 - Pages 3

Essay about Timeline of Yahoo!

Timeline of Yahoo! 1 Timeline of Yahoo! Timeline of major events for Yahoo!. 1990s 1994 • January 1994: Jerry Yang and David Filo create "Jerry's Guide to the World Wide Web" while studying at Stanford University. • April 1994: "Jerry's Guide to the World Wide Web" is renamed "Yahoo" 1995 • March 1995: Yahoo is incorporated. • 1995: Ziff Davis Inc. launches the magazine Yahoo! Internet Life, initially as ZD Internet Life. The magazine was meant to accompany and complement the website…

Words 2074 - Pages 9

Financial Crises Essay

examined will be the Dot-Com Bubble, the Great Recession in the United States and the Greek Crisis. A detailed analysis will be given of each crisis including a comparison of the different events. The first crisis to be examined will be the Dot-Com crisis. This crisis occurred from 1997 to 2000, with the effects of its aftermath being felt until 20021. The country that it affected was just the United States. This crisis was caused by the bubble growth of Dot-Com companies. Dot-Com companies were businesses…

Words 1430 - Pages 6

Essay about Laura Sanchez 2nd Complete

career throughout the years. She received widespread praise for her performance in the movie “Selena” including a Gallan Globe Award for best actress and also acted in many other movies. Lopez was also named as the most beautiful woman in the world by People magazine in 2011. The singer said she was honoured to receive the title and admitted that looking good all the time is not always easy. Lopez is…

Words 382 - Pages 2