-Caveat Lector- From
10am update WorldCom reveals further £2.1bn error Mark Tran Friday August 9, 2002 The Guardian Auditors at WorldCom today revealed the scale of corporate fraud at the bankrupt telecoms giant is greater than was previously thought as they disclosed an additional $3.3bn (£2.1bn) in improper accounting. The disclosure doubles what is already America's largest fraud to more than $7bn, but the company warned last night it may find more accounting problems as it continues an internal investigation. WorldCom said it will restate its financial reports for all of 2000 as a result of the new findings and may have to write $50.6bn to reflect the reduced value of its many acquisitions. WorldCom's fraud is the most spectacular to emerge so far from a string of corporate scandals that has sapped investor confidence and contributed to a slump in shares around the world. The Wall Street scandals have forced the Bush administration to sign into law tough new legislation against corporate malfeasance that includes an oversight body for the accounting industry and stronger penalties for fraud. As WorldCom's reputation sank further with the latest disclosure, a lawyer for its founder and former chief executive, Bernie Ebbers, resorted to a familiar line of defence. Reid Weingarten, of the Washington law firm of Steptoe & Johnson, told the CNBC TV network that Mr Ebbers could not have known of every decision that was made at the telecoms giant. "I'm certain of this," Mr Weingarten said. "When the investigation is done, there will not be a shred of credible evidence that Bernie Ebbers had a thing to do with those [accounting] decisions. The chief executive of a company with 60,000 employees can't know about every decision that is made. Accounting decisions are arcane. They're mysterious for people who are not trained in the science. Bernie Ebbers certainly was not." Mr Ebbers resigned in April as the Mississippi-based company suffered from the consequences of the bursting of the hi-tech bubble. A plunging share price, massive debt and questions about $408m in loans he received from the company made Mr Ebbers' position untenable and the cowboy boot-wearing media tycoon that had dazzled Wall Street was forced to step down. Last week, WorldCom's former chief financial officer Scott Sullivan and its former controller, David Myers, suffered the indignity of being led away in handcuffs in front of the cameras as they were arrested on charges of securities fraud. WorldCom shocked Wall Street in June 25 when it admitted to having inflated profits by reporting $3.8bn in expenses as investment. It fired Mr Sullivan, who was subsequently accused by the then company's auditor, Arthur Andersen, of withholding crucial information about WorldCom's accounts. WorldCom filed for bankruptcy protection last month. Guardian Unlimited © Guardian Newspapers Limited 2002 ~~~~~~~~~~~~~~~ A<>E<>R + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + Forwarded as information only; no automatic endorsement + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + In accordance with Title 17 U.S.C. section 107, this material is distributed without charge or profit to those who have expressed a prior interest in receiving this type of information for non-profit research and educational purposes only. + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + "Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut." --- Ernest Hemingway <A HREF="http://www.ctrl.org/";>www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html";>Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/";>ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
