What happened to MCI WorldCom?
WorldCom was a leading communications company that was acquired by Verizon Communications in January 2006. Known as MCI at the time of the merger, WorldCom’s network assets are now part of Verizon Enterprise Solutions.
Why did MCI WorldCom fail?
WorldCom was a telecommunications company that went bankrupt in 2002 following a massive accounting fraud.
When did MCI WorldCom go out of business?
MCI Inc.
| MCI logo | |
|---|---|
| Trade name | Verizon Enterprise Solutions Verizon Business |
| Founded | 1983 |
| Defunct | 2006 |
| Fate | Acquired by Verizon Communications in 2006 |
What were the major reasons behind WorldCom scandal?
The fraud was uncovered in June 2002 when the company’s internal audit unit, led by the vice president Cynthia Cooper, discovered over $3.8 billion of fraudulent balance sheet entries. Eventually, WorldCom was forced to admit that it had overstated its assets by over $11 billion.
What did MCI do?
From its inception in 1963, Microwave Communications Inc. (MCI) grew to take on the biggest monopoly in U.S. history, helped fuel the long-distance wars of the late 1980s and 1990s and ultimately fetched a sale price of $37 billion.
Who owns MCI now?
Verizon Communications
MCI Inc./Parent organizations
Did Arthur Andersen know about WorldCom?
Chicago’s Andersen accounting firm, convicted earlier this month of obstruction of justice for destroying Enron-related records, was WorldCom’s auditor during the five financial quarters in question. In a statement released Tuesday evening, Andersen contended that it had been misled by WorldCom’s Sullivan.
How could have the WorldCom scandal be prevented?
The WorldCom fraud presumably could have been prevented had the company had good enough internal controls to prevent Scott D. Ebbers, from ordering changes in accounts just to allow the company to report phony profits.
How did the WorldCom scandal affect the company and investors?
The plunge in WorldCom shares has cost investors upwards of $175 billion—nearly three times what was lost in the implosion of Enron. In the same week that the veil was lifted from WorldCom’s books, Xerox restated $6.4 billion in revenues dating to 1997.
Who started MCI?
William G. McGowan
John D. Goeken
MCI Inc./Founders
What is Bernie Ebbers net worth?
Bernie Ebbers, the convicted CEO of WorldCom Inc, is said to have had a net worth of $1.4 billion before his conviction.
When did WorldCom find out about the fraud?
The fraud was uncovered in June 2002 when the company’s internal audit unit, led by vice president Cynthia Cooper, discovered over $3.8 billion of fraudulent balance sheet entries. Eventually, WorldCom was forced to admit that it had overstated its assets by over $11 billion.
When did WorldCom merge with MCI Communications?
So on November 4th, 1997, WorldCom announced a MASSIVE merger with MCI Communications! This was for a small close of $37 billion dollars. Fun Fact: At the time, this was the LARGEST corporate merger in US History. And this also resulted in YET ANOTHER name change for WorldCom.
How much money was transferred in the WorldCom scandal?
Over the weekend, Cooper and her team discovered several more suspicious “prepaid capacity” entries. All told, the internal audit unit had discovered a total of 49 prepaid capacity entries detailing $3.8 billion in transfers spread out across all of 2001 and the first quarter of 2002.
Who was the vice president of WorldCom in 2002?
In June 2002, a small team of internal auditors at WorldCom led by division vice president Cynthia Cooper and senior associate Eugene Morse worked together, often at night and secretly, to investigate and reveal what was ultimately discovered to be $3.8 billion worth of fraudulent entries in WorldCom’s books.