Corporate Scandal
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Corporate Scandal
MCI WorldCom is a long distance telecommunications company and one of the biggest corporate scandals in the United States history when beginning signs of stocks started to decline in 1998, due to the fact; the CEO and his unethical dealings. “He desired to build and protect his own personal financial condition (Secured loans from WorldCom to fund personal investments including a $100 million Canada ranch, $658 million in Mississippi timberlands and a $14 million Georgia shipyard). He wanted to show continuous growing net worth in order to avoid margin calls on his own WorldCom stock that he had pledged to secure loans.” ("WorldCom Scandal: A Look Back At One Of The Biggest Corporate Scandals In U.S. History", 2007).
MCI WorldCom in the beginning was a merger between WorldCom and MCI Communications Inc., which is a subsidiary of Verizon Communications, WorldCom was a small long distance discount service company out of Mississippi, until it merged with MCI then grew into the second largest telecommunications company after AT&T. At that time, the (CEO) Chief Executive Officer was Benard Ebbers, the (CFO) Chief Financial Officer was Scott Sullivan, the Controller was David Myers, the Accounting Director was Buford Yates and the Accounting Managers were Betty Vinson and Troy Normand.
Starting in the beginning of 2000, WorldCom suffered a serious setback worth $129 billion by the hands of the law of the land The United States Justice Department and also the European Union regulators, when they had to abandon a proposal of a merger with Sprint due to the opposition and concerns of possibly creating a monopoly.
Ebbers was fired when a strategy of his failed that involved corporate loans and guarantees totaling over $400 million, and was replaced by the former CEO of UUNET Technologies, Inc, John Sidgmore, but suddenly died of acute pancreatitis in December 2003. From the beginning of 1999 to May 2002, Sullivan, Myers and Yates took over and start...
MCI WorldCom is a long distance telecommunications company and one of the biggest corporate scandals in the United States history when beginning signs of stocks started to decline in 1998, due to the fact; the CEO and his unethical dealings. “He desired to build and protect his own personal financial condition (Secured loans from WorldCom to fund personal investments including a $100 million Canada ranch, $658 million in Mississippi timberlands and a $14 million Georgia shipyard). He wanted to show continuous growing net worth in order to avoid margin calls on his own WorldCom stock that he had pledged to secure loans.” ("WorldCom Scandal: A Look Back At One Of The Biggest Corporate Scandals In U.S. History", 2007).
MCI WorldCom in the beginning was a merger between WorldCom and MCI Communications Inc., which is a subsidiary of Verizon Communications, WorldCom was a small long distance discount service company out of Mississippi, until it merged with MCI then grew into the second largest telecommunications company after AT&T. At that time, the (CEO) Chief Executive Officer was Benard Ebbers, the (CFO) Chief Financial Officer was Scott Sullivan, the Controller was David Myers, the Accounting Director was Buford Yates and the Accounting Managers were Betty Vinson and Troy Normand.
Starting in the beginning of 2000, WorldCom suffered a serious setback worth $129 billion by the hands of the law of the land The United States Justice Department and also the European Union regulators, when they had to abandon a proposal of a merger with Sprint due to the opposition and concerns of possibly creating a monopoly.
Ebbers was fired when a strategy of his failed that involved corporate loans and guarantees totaling over $400 million, and was replaced by the former CEO of UUNET Technologies, Inc, John Sidgmore, but suddenly died of acute pancreatitis in December 2003. From the beginning of 1999 to May 2002, Sullivan, Myers and Yates took over and start...