WorldCom Case Study Update 20061 by Edward J. Romar‚ University of Massachusetts-Boston‚ and Martin Calkins‚ University of Massachusetts-Boston Read the original case. In December 2005‚ two years after this case was written‚ the telecommunications industry consolidated further. Verizon Communications acquired MCI/WorldCom and SBC Communications acquired AT&T Corporation‚ which had been in business since the 19th Century. The acquisition of MCI/WorldCom was the direct result of the behavior
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Bernie Madoff Bernard (Bernie) Madoff committed this century’s largest Ponzi scheme to date. First we will define Ponzi Scheme – it is a fraudulent pyramid scheme where original investors are paid their gains out of new investors money so it would appear to old investor that the scheme (business) is producing an unusually large return (Albrecht‚ 2009). The Ponzi scheme that Madoff created and pulled off for years was quite intricate. In a standard pyramid scheme each victim unknowingly brings in
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as a performance indicator by analysts and industry observers‚ pressure was put on the senior managers and lead executives to find a way to become more profitable again. Each major player in player in WorldCom had their own pressures too. CEO Bernie Ebbers had taken loans against his WorldCom stock to support several personal business ventures. The success of WorldCom‚ as measured by its stock price‚ was vital to supporting his outside business. Thus‚ keeping the value of the company inflated would
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WorldCom Ethical Scandal In the late 1990’s‚ WorldCom was a successful company and leader in the telecommunications world. They had merged with MCI and the company was regarded for being innovative and growth hungry. However‚ in the midst of all the mergers WorldCom CEO Bernard Ebberly began to mismanage the company. WorldCom was no longer meeting their numbers and it looked like stock prices would fall. Rather than letting this happen‚ executives at WorldCom doctored the books. CFO Scott
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edu/networks/Telecommunications_Regulation.pdf Hevesi‚ A Mecoy‚ D. (2003‚ Sep 14). Cost of WorldCom fraud for Oklahoma investors still unknown. Knight Ridder Tribune Business News. Retrieved from www.proquest.com WorldCom Morton‚ P. (2005‚ July 14). Ebbers became symbol of scandals: downfall began with blocked Sprint bid in ’97. National Post ’s Financial Post & FP Investing (Canada) National Edition‚ p. FP1. Retrieved from: www.lexisnexis.com/us/lnacademic Norris‚ F O’Reilly‚ C. (2005‚ August 11)
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I believe that corporate employees working within the confines and rules of the organization‚ have all the tools required to act ethically. When an individual is asked to do something that they may even suspect would be detrimental to their livelihood‚ then they have all the rights given to them to not follow through with that action. In the case of Betty Vinson of WorldCom‚ while she had the clear understanding that her actions were wrong‚ she clearly kept personal financial safety ahead of her
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Clinton and Senator Bernie Sanders being the only exceptions. Governor Lincoln Chafee was first to introduce himself and as soon as he began to talk I noticed a few people turn to another television that had a baseball game on‚ most people began to look at their phones‚ while I noticed some small groups of people talking to each other. This trend continued as Senator Jim Webb‚ and Governor Martin O’Malley gave their introductions. It was not until the commentator said Senator Bernie Sanders name that
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at hand. In 1983‚ two businessmen‚ Murray Waldron and William Rector laid out a plan to start a discount long-distance provider called Long-Distance Discount Service (LDDS). The company began in Jackson‚ Mississippi. In 1985‚ LDDS selected Bernard Ebber‚ who was an early investor‚ to become chief executive officer. LDDS went public in August 1989 when it acquired Advantage Companies‚ Inc. LDDS name was changed to LDDS WorldCom in 1995‚ which later became known as just WorldCom. During the 1990s‚
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ethical behavior is on the rise although it will take a long time to recover from the scandals that rocked the world beginning with Waste Management in 1998 and following with Enron‚ WorldCom‚ Tyco‚ HealthSouth‚ Freddie Mac‚ AIG‚ Lehman Brothers‚ Bernie Madoff and Saytam in 2009. For 10 years unethical behavior and choices almost brought our country to its knees and even now many people are losing their homes and their jobs because the economy has still not fully recovered. In 1983 in a small coffee
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In December 2008 Bernie Madoff was arrested under the suspicion of fraud. His Wall Street firm‚ Bernard L. Madoff Investment Securities LLC‚ was founded in 1960. Madoff was the chairman of this company through its entire existence until his arrest. Ponzi Schemes such as the one Bernie Madoff started at his company have been around for years; the first being Charles Ponzi’s scheme in the 1900’s. Madoff made history through his scheme as it is considered one of the largest financial frauds ever.
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