Where is worldcom now

However, the scale of the WorldCom fraud put even them in the shade. WorldCom has become a byword for accounting fraud and a warning to investors that when things seem too good to be true, they just might be. When the tech boom turned to bust, and companies slashed spending on telecom services and equipment, WorldCom resorted to accounting tricks to maintain the appearance of ever-growing profitability.

As a result, Ebbers lost his fortune. In he was convicted of securities fraud and sentenced to 25 years in prison. This was not a sophisticated fraud. To hide its falling profitability, WorldCom inflated net income and cash flow by recording expenses as investments. WorldCom filed for bankruptcy on July 21, , only a month after its auditor, Arthur Andersen, was convicted of obstruction of justice for shredding documents related to its audit of Enron.

This spate of corporate crime led to the Sarbanes-Oxley Act in July , which strengthened disclosure requirements and the penalties for fraudulent accounting. In the aftermath, WorldCom left a stain on the reputation of accounting firms, investment banks, and credit rating agencies that had never quite been removed.

Bernard Ebbers was convicted on nine counts of securities fraud and sentenced to 25 years in prison in On Dec. Thanks to debtor-in-possession financing from Citigroup, J. Morgan, and G. Capital, the company would survive as a going concern when it emerged from bankruptcy in as MCI—a telecom company WorldCom had acquired in However, tens of thousands of workers lost their jobs.

In Jan. Auburn University. University of Virginia. Securities and Exchange Commission. Accessed Oct. The Wall Street Journal. Business Leaders. Fiscal Policy. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. It's also a step other IXCs have taken. Even though MCI might be behind its competitors, the company says it is moving aggressively.

The edge switches will let the carrier support its frame relay, ATM, private line and voice traffic over its IP backbone. While the company's mood was upbeat last week as it announced the completion of its day plan and the filing of its three-year reorganization plan, MCI faces much uncertainty.

Capellas has cleaned house and is doing the best he can. The company is positive and upbeat," Winther says. MCI says that's exactly what it will do. Reliability, strong customer service and compelling services are what the carrier says will fuel the growth. Although MCI likes to point out that it hasn't lost any very large enterprise business customers since last year, it has lost customers overall www.

The carrier's falling revenue only further proves that some customers have left. But MCI is expecting strong growth in business services as it rolls out offerings to address this market. That engine has been quiet this last year. We're going to change that. Although Meta's Willis says the carrier has reduced rates during contract negotiations to keep existing customers, MCI says it will not cut rates just to win new business.

Several family members for Ebbers who attended the proceeding rejoiced, sobbing and hugging one another, when the judge announced her ruling. Another threw her arms into the air as the judge stepped down from the bench. Caproni said it fell within her discretion to order the early release after a lawyer cited severe medical problems for the year-old Ebbers and said his weight had dropped from above pounds to pounds last week.

Jeffrey Epstein: Prince Andrew loses corporate sponsors following scandal. College admissions scandal: Judge calls USC dad a 'thief,' gives longest prison sentence so far. NCAA scandal: Sports business manager gets year in prison. The Mississippi-based WorldCom collapsed and went into bankruptcy in , causing losses to stockholders, including people who had invested through retirement plans.

WorldCom emerged from bankruptcy in and rebranded itself MCI, the name of a telecommunications company WorldCom bought years earlier. During bankruptcy, the company moved its headquarters from Clinton, Mississippi, to Ashburn, Virginia. The judge said she had received letters from some who never recovered from huge financial losses to say he should be left to die in prison. Ebbers was convicted in New York in on securities fraud and other charges and received a year sentence.