WorldCom Fraud Doubles

Silvaran writes "No, this isn't a repeat story. WorldCom claims another $3.3 billion accounting error. That's about $7 billion, for those that are counting. Wish I had that kind of cash to miscalculate on my income tax forms." There's also a NYT story. I love how the news outlets are saying, "error", "irregularity", "problem", as if this was all some sort of tragic accident, instead of laying out the obvious truth, "criminal fraud committed with full knowledge it was a crime".

Comments

And on top of that few billion...

[killthiskid]

WorldCom also said that when the earnings are restated, it would most likely take a write-off of as much as $50.6 billion related to the reduced value of past acquisitions.

So theres another $50.6 billion down the hole, too.

What I don't get about telecom, esp. the telecom in my area, QWest, is how the hell they are rolling in money. My phone bill is outrageous... and they have a monopoly in the region. I know they're getting at least $40 out of every person with a phone in the midwest... where the hell does all that money go?

Spin doctoring

[zevans]

Maybe the American press are skirting the issue - but the British press certainly aren't: try
The Guardian ("fraud" appears 5 times) and The Times which even uses the word "scam".

Zack

Re:Hey Michael

[Pxtl]

Yes, and the equivalent computer industry terms in this case would be:
- maliscious code
- cracking/hacking
- backdoors in critical software
Except that, for doing any of those things, under current laws you will be fired, fined, and imprisoned. Those laws are enforced.

For "miscalculations" you will be noted, fined 1% of your profit, and forgotten.

Let's compare what happened to Mitnick or Sklyarov to the worst cases of corporate fraud you can think of. Pretty depressing innit?

I have a few questions...

[gamorck]

(1) Why isn't every single member of Worldcom's Board of Directors in jail right now? So its okay to throw some kid in jail for cracking some piss poor encryption on a PDF file - but its not so okay to throw some suit in jail that knowingly stole billions upon billions of dollars from investors?

(2) Why hasn't Worldcom's stock been delisted? I mean comeon now - I think its about time to hang up the saddle and go on home because this horse isn't getting back up.

(3) Why is Worldcom being allowed to write off 50 billion dollars (as mentioned earlier) in addition to the 7 billion they already stole? I think Bernie Ebbers and friends better get out to the street corner and start "sucking it up" so he can play these people BACK.

(4) And once again - WHY AREN'T THESE FSCKING IDIOTS IN JAIL? If I bounce a check for 100 bucks I'm sure to face the consequences - yet if they "steal" 7 billion dollars its okay?

J

Re:Handling by Justice Department

[ajm]

Which companies provided the planes used by the Republicans during the Florida recount?

Answer: Enron and Haliburton

Re:Hey Michael

[sphealey]

If you can somehow illustrate how the terminology in the computer industry is similarly bastardized, I'd welcome the chance to debunk it. Regardless what seems "pretty obvious" - the truth is in the words. If it can't be quoted, it CAN be denied.

When your ERP system corrupts all your accounts receivable data, leaving your company with no source of revenue, the ERP vendor will tell you the software is "working as designed". So you go to your backup tapes, hoping against hope that you can at least load the data in Excel and do something with it, only to find out that the backup software has been reporting for 6 months that it has backed up and verified your data files but hasn't actually written anything to tape (happened to me). The backup vendor tells you their software has a "bug" or an "issue", and of course the disclaimer of liability means it isn't their fault. Bye bye company.

Do you need more examples? I can provide plenty!

sPh