BusinessBusiness RecoveryFBI joins inquiry into Global Crossing

FBI joins inquiry into Global Crossing

Global Crossing, the bankrupt telcom, is now also under a Federal Bureau of Investigation inquiry into its accounting procedures, in addition to a current SEC inquiry and a self-commissioned independent inquiry.

The company, which is audited by Enron-embattled firm Andersen, filed for Chapter 11 protection two weeks ago. Earlier this week it said it was cooperating with a separate U.S. Securities and Exchange Commission probe of allegations of improper accounting at the company.

A third independent investigation is also underway at the request of Andersen and its own audit committee. A special committe, and an outside accountant are currently examining allegations made by former employee Roy Olofson.

Global Crossing did not show Andersen a letter written last year by Olofson, the former vice president of finance, until last week – it claimed the company had inflated its earnings and cash flow to make its financial performance look better than it actually was.

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