Fraud estimates escalate at WorldCom
The WorldCom scandal escalated still further last night as the SEC increased the estimates of the alleged fraud by $1.8bn.
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It means the company will have inflated profits by an unbelievable $9bn in the final two years running up to the biggest collapse in corporate history.
The restatement comes a day after the publishing of a report by lawyer Richard Thornburgh which stated former chief, Bernie Ebbers, had borrowed $1bn against his WorldCom stock.
A statement issued by the company in response remains defiant: ‘Restatements of past accounting have no impact on its ability to continue to provide service to its customers nor on its ability to emerge from bankruptcy protection which it expects to take place in mid-2003.’