BusinessCompany NewsGlobal Crossing hands over accounts to feds

Global Crossing hands over accounts to feds

Troubled fibre-optic network company Global Crossing has been asked to produce details of accounts to federal investigators in what could prove to be a mirror of the Enron collapse.

Global Crossing is accused of using creative accounting steps that appear to increase revenues on paper without actually increasing cash flow, which would fool investors.

In a letter to the company’s CEO John Legere, the US House Energy and Commerce Committee confirmed investigations into omitted materials ‘necessary for investors to understand Global Crossing’s true financial position’.

In particular, the group seeks further information on a $400m contract to build an intranet for the US Defense Department.

Global Crossing’s accountant is Andersen.

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