Zeev's Turnips Patch-No Politics (ZEEV)

[sylvester80]

$2 Billion More in WorldCom Errors - CNBC

Better stick those Worldcom criminals in the worse jail with molesters. I think the Qwest execs will soon follow.

http://biz.yahoo.com/rb/020808/worldcom_fraud_3.html

NEW YORK (Reuters) - Bankrupt telephone company WorldCom Inc. has discovered about $2 billion in additional accounting discrepancies, CNBC said on Thursday, citing sources familiar with the matter.

Clinton, Mississippi-based WorldCom declined to comment on the report.

CNBC said WorldCom had used an accounting trick in which most of the $2 billion was reversed from reserves for bad debts into operating income. It said the additional fraud was found by WorldCom's auditors poring over its financial statements in 1999 and 2000.

WorldCom filed bankruptcy earlier this month, buckling under $40 billion in debt and a $3.85 billion accounting scandal. The $3.85 billion was found in its statements for 2001 and the first half of 2002.

WorldCom fired its chief financial officer, Scott Sullivan, who it alleged orchestrated the accounting debacle.

Last week, Sullivan and former Controller David Myers were arrested and released on bail. Chief Executive Officer Bernie Ebbers resigned under pressure in April.

WorldCom, which transmits half of the world's Internet traffic, has been charged with fraud by the U.S. Securities and Exchange Commission and faces an investigation by the Department of Justice.