ACCESSING CLASSIFIED FILES
Decrypting documents...
Your connection is being monitored
Back to Individuals
high risk
WorldCom, Inc.
Collapsed Telecom Corporation
Telecommunications company (dissolved after fraud)
Overview
WorldCom was a major American telecommunications company that perpetrated an $11 billion accounting fraud, the largest in US history at the time of its discovery in 2002. The fraud was uncovered by internal auditor Cynthia Cooper, and CEO Bernie Ebbers was sentenced to 25 years in prison. WorldCom's bankruptcy was the largest in US history until Lehman Brothers in 2008.
Key Affiliations
Controversies & Concerns
$11 BILLION FRAUD: Inflated assets by approximately $11 billion through fraudulent accounting entries
LARGEST BANKRUPTCY: Filed largest bankruptcy in US history at the time ($107 billion in assets)
CEO CONVICTED: Bernard Ebbers sentenced to 25 years for fraud, conspiracy, false filings
AUDITOR FAILURE: Arthur Andersen failed to detect fraud (same firm behind Enron)
Related Investigations (1)
Criminal Charges & Violations
2 documented violations
18 U.S.C. 1343Wire fraud; $11 billion accounting fraud(Corporate Fraud)
15 U.S.C. 78ffSecurities fraud(Corporate Fraud)
Sources & Documentation
1 documented sources from official records, investigations, and reports
Personal Information
- Also Known As
- MCI WorldCom, LDDS
Education
Key Timeline
1983
Founded as LDDS Communications
1998
Name changed to WorldCom after MCI merger
2002 (Jun)
Internal auditor Cynthia Cooper discovers $3.8 billion in fraud
2002 (Jul)
Files for bankruptcy, largest in US history at time
2005
CEO Bernie Ebbers sentenced to 25 years