Bankrupt network company Global Crossing has admitted that important documents were destroyed in several of its main offices after instructions were sent out not to shred evidence.
Accountancy Age, 25 Jun 2002
According to reports in the New York Times, Global Crossing admitted in discussions with its investors' lawyers that documents had been destroyed in Rochester, Montreal, Toronto and Minneapolis.
Global Crossing filed for Chapter 11 bankruptcy protection in January of this year, the fourth largest bankruptcy in US history.
The revelation backs up claims from former employees that they had witnessed documents being shredded after investigators said they were to probe the collapse of the firm.
Global Crossing itself admitted at the weekend 'isolated incidences of document disposal in the ordinary course of business', but insisted that 'none of the documents involved appear to have any relevance to pending litigation or governmental investigations.'
The US Securities and Exchange Commission launched its investigation into the company on 4 February. Global Crossing instructed its staff not to shred documents three days later on 7 February.
Controversy surrounds its founder Gary Winnick who is believed to be trying to prevent investigations. Winnick allegedly made $730m (£486m) from Global Crossing deals before the company collapsed and laid off 7000 staff.
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