David Myers, Worldcom
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 by means of acquisitions and increased demand for telecom services farther fuelled the growth of WorldCom during the whole of 90s. However on June 25, 2002, WorldCom announced that it had overstated earnings in 2001 and the first quarter of 2002 by more than $3.8 billion (The WorldCom Accounting Scandal, 2002).
The Scandal
WorldCom scandal was one of the biggest accounting scandals of American corporate history. WorldCom was a U.S based telecommunication company. The WorldCom accounting scandal was disclosed in 2002. The Company had resorted to fraudulent accounting practices for five quarters (four quarters of 2001 and the first quarter of 2002) (The WorldCom Accounting Scandal, 2002). The well-known telecommunication company WorldCom and the accounting, auditing and consultancy enterprise were involved in this big accounting fraud. The corporate scandal of WorldCom ultimately headed the company towards the disgrace that ensued in the biggest bankruptcy in American history.
After this act the company terminated the service of the top executive including Scott Sullivan, the Chief Financial Officer and David Myers, the Senior Vice President and Controller. Myers knew that the accounting entries were made without supporting documentation, were not in conformity with GAAP, were not disclosed to the investing public, and were designed to allow WorldCom to appear to meet Wall Street analysts ' quarterly earnings estimates. In addition, during the same period Myers and
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 by means of acquisitions and increased demand for telecom services farther fuelled the growth of WorldCom during the whole of 90s. However on June 25, 2002, WorldCom announced that it had overstated earnings in 2001 and the first quarter of 2002 by more than $3.8 billion (The WorldCom Accounting Scandal, 2002).
The Scandal
WorldCom scandal was one of the biggest accounting scandals of American corporate history. WorldCom was a U.S based telecommunication company. The WorldCom accounting scandal was disclosed in 2002. The Company had resorted to fraudulent accounting practices for five quarters (four quarters of 2001 and the first quarter of 2002) (The WorldCom Accounting Scandal, 2002). The well-known telecommunication company WorldCom and the accounting, auditing and consultancy enterprise were involved in this big accounting fraud. The corporate scandal of WorldCom ultimately headed the company towards the disgrace that ensued in the biggest bankruptcy in American history.
After this act the company terminated the service of the top executive including Scott Sullivan, the Chief Financial Officer and David Myers, the Senior Vice President and Controller. Myers knew that the accounting entries were made without supporting documentation, were not in conformity with GAAP, were not disclosed to the investing public, and were designed to allow WorldCom to appear to meet Wall Street analysts ' quarterly earnings estimates. In addition, during the same period Myers and
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