For my ethical violation summary, I picked the former CEO of WorldCom, Inc.. WorldCom, Inc. is a U.S based telecommunications company that was at one point in time the second largest long distance phone company in the United States. The CEO of WorldCom was Bernard Ebbers. Bernard Ebbers was from Canada and had quit teaching high school in 1980. Ebbers bought a motel in Mississippi and eventually bought 8 Hampton Inns and Courtyard by Marriott’s. Through investors he met in buying motels, Ebbers
Words: 601 - Pages: 3
Final Paper: Case Study of WorldCom Financial Statement Fraud Introduction This paper will discuss the financial statement fraud committed by WorldCom by examining what led up to the fraud, who committed it and why, and the impact it caused on various stakeholders and the economy. WorldCom applied aggressive and undisclosed accounting tactics to provide financial statements that reflected a $10 billion profit for the years 2000 and 2001, rather than the actual combined loss of $73.7 billion
Words: 3888 - Pages: 16
Chad Ducharme Macroeconomics What do Enron, Tyco, and World-com have in common Intro The purpose of this work is to show you what happens when you try to cheat the system. the reason the government does audits and checks for so many frauds is because people nowadays will do whatever it takes to make a little extra money. What these companies did not only hurt themselves in the long run but hurt the millions of workers and families that were connected with them. The Companies Enron was formed
Words: 1088 - Pages: 5
Inc, and then in 1992 it merged with Advanced Telecommunications Corp. With these two mergers WorldCom Inc. grew into a large company with in the US and globally as well (Pandey & Verma, 2004). It was not until WorldCom Inc merged with MCI Communication Corp. that it began to have business with over 280 countries and locations worldwide (Pandey & Verma, 2004). WorldCom was listed as one of the Fortune 500 Company in Fortune magazine for the telecom sector. Even though WorldCom Inc. was listed
Words: 911 - Pages: 4
Page 1 FOCUS - 1 of 3 DOCUMENTS Mondaq Business Briefing November 7, 2006 Canada: Why Bernie Ebbers is Serving a 25-Year Jail Sentence BYLINE: By Garfield Emerson LENGTH: 6613 words 1. Background On September 26, 2006, Bernard J. Ebbers ("Ebbers"), the former Chief Executive Officer of WorldCom, Inc. ("WorldCom"), reported to a federal prison in Oakdale, Louisiana, to begin serving his 25-year jail sentence from his conviction by a jury on nine counts of conspiracy, securities fraud
Words: 6597 - Pages: 27
The accounting fraud at WorldCom was the result of corporate supremacy, individual liability, and an ultimate collapse of their system of in-house controls that can all be attributed to greed, manipulation and a lack of accountability for top executives. Bernie Ebbers, at the helm of it all, lacked focus, strategic direction, and led WorldCom with a consistently declining moral compass. It is thought that the ethical turn down of WorldCom’s top executives began with the U.S. Justice Department’s
Words: 719 - Pages: 3
of AT&T and it enabled small, regional companies gain access to AT&T’s long-distance phone lines at deeply discounted rates. LLDS (Long Distance Discount Services) provided services to those regions where well-established companies, such as MCI and Sprint, had very little presence. At an early stage of the company, Bernard J. Ebbers, was given the charge to run the show. He firmly believed in inorganic growth and focused company’s strategy on acquisitions. Acquiring small long-distance companies
Words: 1685 - Pages: 7
Worldcom Fraud Investigation Use the Fraud Triangle and Fraud Scale to critically analyse the actions of Bernie Ebbers and Scott Sullivan during the WorldCom saga/ What does your analysis suggest? Dennis Greer’s fraud triangle is a key framework in analysing the ‘factors that cause someone to commit occupational fraud’ (ACFE-The Fraud Triangle, Association of Certified Fraud, Examiners Available from:http://www.acfe.com/fraud-triangle.aspx [January 2014]). The three elements that
Words: 316 - Pages: 2
grew primarily through an aggressive merger and acquisition growth strategy. In 1997 WorldCom had emerged within the telecom industry and caught the eye of many on Wall Street when it issued a bid to acquire the much larger and better-known company, MCI. While WorldCom’s growth skyrocketed throughout the 1990s, the telecom market was saturated by 2001 and WorldCom’s earnings began to fall. WorldCom executives began to feel tremendous pressure to maintain their stellar track record of financial performance
Words: 500 - Pages: 2
challenges of attracting and retaining employees. This paper entails Verizon Communications’ policies and procedures that the company uses to address new and old issues that management faces. In today’s society many people come from diverse backgrounds and companies have to learn to work with the differences. Verizon Communications is a leader in providing broadband and other wire line and wireless communication innovations to business, government, mass market and wholesale customers. The
Words: 2162 - Pages: 9
