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----- Original Message ----- 
From: info <[EMAIL PROTECTED]>
Sent: Wednesday, June 26, 2002 4:04 PM
Subject: [mobilize-globally] Corporate America hit by biggest scandal in history

------ Forwarded Message
From: Rick Rozoff <[EMAIL PROTECTED]>
Date: Tue, 25 Jun 2002 23:57:24 -0700 (PDT)
Subject: [MLNews!*2002] Corporate America hit by biggest scandal in history,,3-338704,00.html

The Times (London)
June 26, 2002

Corporate America hit by biggest scandal in history
>From Chris Ayres in New York
CORPORATE America suffered its biggest scandal to date
last night when it was claimed that WorldCom, a
telecommunications company founded by a devout
Mississippi Christian, had lied about making about
$3.85 billion (?2.6 billion) of profits over 15
The size of the alleged profits overstatement at
WorldCom is more than double the previous record, set
by the pharmacy chain Rite Aid, and makes the
accounting irregularities at Enron Corporation look
like a rounding error. WorldCom, already crippled by
nearly $30 billion of debt, is now expected to go

Brad Burns, a WorldCom spokesman, could not be reached
for comment by The Times last night. The alleged
WorldCom fraud comes amid a crisis of confidence in US
capitalism, after a series of accounting scandals at
Tyco International, Kmart, Enron and Global Crossing.

The accounting problems at WorldCom, described as a
?massive fraud? by sources last night, were discovered
during an internal investigation at the firm. WorldCom
has fired its chief financial officer, Scott Sullivan.

Last night?s revelation is likely to result in
questioning of Bernie Ebbers, WorldCom?s cowboy-booted
founder and former chief executive, who was ousted in

Until yesterday, Mr Ebbers, 60, was most famous for
giving himself a $366 million personal loan from
WorldCom?s bank account. The loan, to cover some of Mr
Ebbers?s share trading debts, caused widespread
outrage on Wall Street.

The former WorldCom chief was one of Wall Street?s
most charismatic chief executives. He still drives a
tractor on his brother?s cattle ranch and takes Sunday
school classes at a Baptist church in Mississippi.
According to The Wall Street Journal, ?it isn?t
beneath him to occasionally castrate a bull?.

WorldCom?s auditing firm during the period of the
accounting problems was Andersen, which was also
Enron?s auditor. 

It is thought that WorldCom exaggerated its profits by
billions of dollars using a simple accounting trick:
it booked many of its day-to-day expenses as capital
expenditure. That meant that corporate expenses did
not show up on its profit-and-loss account, making the
firm appear far more profitable than it was.


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Yahoo! - Official partner of 2002 FIFA World Cup

 Main Line News 2002
Amnesty International today expressed its dismay and disappointment at the
Canadian authorities' refusal to grantaccreditation to the organization's
observer of the policing at the G8 summit

NYC Live Webcast: Protesting the G8 Agenda
The leaders of the G8, "an exclusive grouping of the wealthiest advanced
industrialized nations," will convene this week for their annual summit in
Kananaskis, Alberta. To
protest against the G8's dominance over global affairs, activists are
presently converging in Kananaskis, Calgary and Ottawa.

Radio Free Ottawa is Now Live [OttawaIMC]
gretchen k. - 24.06.2002 11:05
IMC Ottawa is now broadcasting live from the media centre, with our stream
available at or open the following URL in your
MP3 player: .

AltaVista.Com: Translate with Babel Fish


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