WorldCom settles fraud case with SEC
WorldCom yesterday settled its case with US regulators over an alleged fraud in its accountants. The bankrupt company had been accused of inflating its income figures since 1999 by as much as $9bn (£5.8bn).
Link: WorldCom special report
The Securities and Exchange Commission, along with WorldCom, asked a New York bankruptcy court judge for permission to settle the case, which would see WorldCom pledge not to engage in any fraudulent activity. The company will also give its consent to continuing scrutiny of its corporate governance, policies, plans and internal controls by an independent monitor.
WorldCom was also ordered to offer education and training to certain employees in order to reduce the risk of further violations.
Despite the settlement the SEC still intends to impose a fine on the company which could be up to several million dollars.