Introduction WorldCom was America ’s second largest telecom company in 2000 (The WorldCom Accounting Scandal‚ 2002). Making a modest beginning in the hinterland of Mississippi in 1983 with a meager capital of less than 100‚000 USD it reached the pinnacle of corporate success reporting more than USD 39 billion in revenue and USD 150 million in MCAP (The WorldCom Accounting Scandal‚ 2002). In the process it became 42nd in the Fortune 500 list. Under the leadership of CEO Bernie Ebbers it grew rapidly
Premium Corporate governance Management Accounting scandals
E. Boos – Week 2 – Assignment February 17‚ 2013 The Enron and WoldCom Scandals ENRON 1. The segment of Enron’s operations that got them into difficulties had several parts. They published misleading financial reports. They could not meet their bridge financing commitment with Barclay Bank because outside investors were not found. Because of this‚ they restated activities of JEDI and Chewco SPEs so they could be retroactively consolidated into Enron’s accounts. The SPEs
Premium Enron
Accounting Fraud at WorldCom LDDS began operations in 1984 offering services to local retail and commercial customers in the southern states. It was initially a loss making enterprise‚ and thus hired Bernie J. (Bernie) Ebbers to run things. It took him less than a year to make the company profitable. By the end of 1993‚ LDDS was the fourth largest long distance carrier in the United States. After a shareholder vote in May 1995‚ the company officially came to be known as WorldCom. WorldCom culture was
Premium Corporate governance Accountant Revenue
FAR600 CASE STUDY WORLDCOM QUESTION 1 a) Discuss the earnings management technique employed by the management of World Com. WorldCom admitted that the company had classified over $3.8 billion in payments for line costs as capital expenditures rather than current expenses. Line costs are what WorldCom pays other companies for using their communications networks; they consist principally of access fees and transport charges for messages for WorldCom customers. Reportedly‚ $3
Premium Dennis Kozlowski Tyco International
Case Study The Rise and Fall of WorldcomThis case study is about Bernard Ebbers CEO of Worldcom‚ Inc. and Scott Sullivan CFO of Worldcom‚ Inc. once they were boosted the company growth and they got awards. Later on they made frauds by using their influential tactics on employees and company’s board. Those are Assertiveness: it involves applying legitimate and coercive power to influence others by threatening or giving punishment. This tactic was used by sullivans office where they berated and intimidated
Premium Fraud Corporate governance
but they still got paid. As a result of no past suspension‚ Dennis Wideman deserves to be suspended‚ but with pay. People make mistakes and this is a mistake.The league made the right decision suspending him‚ but with without pay. Dennis Wideman was all caught up in the action and made a bonehead play and I can almost guarantee that he would go back in time and change what he did‚ lots of people make bad decision and this was one‚ Dennis Wideman should be suspended with pay because a player named
Premium Major League Baseball Players Player
Accounting Fraud at WorldCom Vanessa Gail Woods Strayer University Connor-Green/ACC 576 March 21‚ 2010 Accounting Fraud at WorldCom The break up of AT&T opened the long distance service market to small companies during the mid- to late-1980s and 1990s. Long Distance Discount Service (LDDS) opened in 1983 with moderate growth until its stock went public in 1989. CEO Bernie Ebbers decided to grow the organization through acquisitions (70 companies over the course of its lifetime)
Premium Enron Audit Fraud
Dennis O’Driscoll’s poem‚ “Tomorrow” takes its reader through stages of optimism‚ jealousy‚ and pessimism within its three parts. While each part of the poem is different and has its own theme‚ it can be found that they tie together in the end. In the poem “Tomorrow”‚ we are taken through the stages of optimism for a better life‚ jealousy for those who already seem to have it‚ then pessimism for believing the future will bring anything new. Part one of O’Driscoll’s “Tomorrow”‚ labelled “I”‚ brings
Premium Poetry Life Future
At the end of 1970 until 1997‚ Dennis Rader‚ otherwise known as the BTK killer terrorized the Wichita Kansas area. Rader was convicted of killing 10 people over a 27 year period. The Otero family was the first victim of Rader’s reign of terror (Chu‚ Sieger‚ & Thigpen‚ 2005). In 1974‚ Rader strangled Joseph‚ Joseph Jr‚ Josephine‚ and Julie Otero. Left at the crime scene was Semen from the suspect masturbating over the lifeless body of 11 year old Josephine Otero (Chu et al.‚ 2005). At the time‚ DNA
Premium Dennis Rader Crime
Worldcom was the second largest long distance phone company in the United States. The former CEO Bernard Ebbers was sentenced to twenty five years in prison due to increasing revenue the wrong way to increase earnings. This company had the largest bankruptcy filing in the United States. Today‚ the Worldcom accounting scandal is known as one of the worst corporate white collar crimes in history. What were some psychological factors that led to this crime? Financial Pressures from competitors
Premium Enron Accounting scandals Enron scandal