2005 by the American Institute of Certified Public Accountants‚ Inc.‚ New York‚ New York. WorldCom’s Background • Awoke the sleeping giant by leading the telecom industry into profitability in the 90’s. • Telecom industry faced low margins and Bernie Ebbers decided growth=survival • During the 1990’s‚ WorldCom was deeply involved in acquisitions and completed several “mega-deals” • Purchased over 60 firms in 2nd half of the 90’s • WorldCom moved into Internet and data traffic – Handled 50% of US
Premium Fraud Expense Financial audit
From the Desk of: Imran Omer Case Study: WorldCom From its beginnings as a long distance call player to handler of Internet data traffic‚ WorldCom was a spectacular firework in the sky before it crashed out as one of the biggest bankruptcies America has witnessed in its corporate history. WorldCom carried more international voice traffic than any other company. It carried a large amount of the world‟s Internet traffic. WorldCom owned and operated a global IP (Internet Protocol) backbone that
Premium Operating expense Capital expenditure
relatively small amount of people‚ are completely wrong. Bernie Ebbers‚ Chief Executive Officer‚ and Chief Financial Officer‚ Scott Sullivan’s classical view of social responsibility was the beginning of the end for WorldCom; this classical view shaped WorldCom’s organizational culture‚ and blinded how WorldCom should have safeguarded against unethical accounting breaches. Ebbers and Sullivan’s Classical View of Social Responsibility Ebbers was one of nine investors of Long Distance Discount Services
Premium Fraud Corporate governance Accounting scandals
of Politics: • EU enlargement • The euro • International trade • Taxation role Economic • Formula One flotation by Private equity firm delayed until 2014 as a result of a market turmoil and a legal battle engulfing its chief executive‚ Bernie Ecclestone. • The floatation was expected to reduce the uncertainty about the economic environment felt by constructors‚ improving the teams revenues from broadcasting. • Major financial institutions are taking equity stakes in constructors that
Premium Formula One
corporate scandals: Enron‚ Tyco‚ Global Crossing. In many ways‚ WorldCom is just another case of failed corporate governance‚ accounting abuses‚ and outright greed. But none of these other companies had senior executives as colorful and likable as Bernie Ebbers. A Canadian by birth‚ the 6 foot‚ 3 inch former basketball coach and Sunday School teacher emerged from the collapse of WorldCom www.scu.edu/ethics/dialogue/candc/cases/worldcom.html 1/7 7/22/13 WorldCom not only broke but with a personal
Premium Stock Stock market
Beginning of a Whistleblower Bernie Ebbers‚ Scott Sullivan‚ and other members of top management intentionally led Mississippi’s pride and joy‚ WorldCom‚ on a 5-quarter charade filled with smoke‚ mirrors‚ and much intimidation. They did it hotly pursuing success‚ monetary gain‚ and the praise of their fellow statesmen. They did it by abusing work relationships and intimidating employees with promises and threats. Ultimately‚ they ended up “losing their footing” which caused them and‚ in turn‚ others
Premium Fraud Internal audit Accounting scandals
WorldCom? There are a couple of major characters that played their roles in the downfall of WorldCom. Mr. Bernard J. (Bernie) Ebbers‚ one of the founders of the original small long-distance carrier‚ was asked to take charge of the company during its early struggles. It was under his tenure that WorldCom began its expanding pursuits and aggressive acquisitions. Although Mr. Ebbers was he head of the company‚ their CFO‚ Scott Sullivan‚ was the person who actually handled the acquisitions. Under Mr
Premium Ethics Fraud Morality
fraud and destroyed investor confidence in corporate accounting. But the biggest collapse was that of WorldCom. In 1983 Bernie Ebbers and several other people invested in a newly formed company in Clinton‚ Mississippi called Long Distance Discount Services‚ Inc. (LDDS). LDDS was a provider of long distance telephone service to residential and commercial markets. Ebbers became CEO of LDDS in 1985. In 1989 the company merged with Advantage Companies‚ Inc. and became publicly traded. In 1995 the
Premium Expense Accounting scandals Operating expense
Enron’s Questionable Transactions 1. Which segment of its operations got Enron into difficulties? * The fact that Kopper was appointed to Fastow and he was an employee at Enron was the first thing that got them into trouble. Another reason was that over 11 million was invested and it ended up not being invested at all. I believe these two situations ended up being the start of Enron’s problems. Enron also was not reporting the revenue for service correctly and his stock was paid
Premium Enron Corporate governance Bond
Chandra * Niteesh Chinta * Shraddha Rane * Swathi Punreddy The Rise and fall of WorldCom This case study WorldCom is a telecommunications company which was led by CEO‚ Bernard Ebbers‚ and CFO‚ Scott Sullivan. In 1999‚ WorldCom was not meeting Wall Street’s revenue and earnings expectations‚ and it appeared that the coming year would produce more bad news. The CFO argued for setting realistic targets. However‚ the CEO insisted
Premium Leadership