| Bernie Ebbers - WorldCom | Ethical Profile | Khristin B. Vargas | uNIVERSITY OF lA vERNE 1/22/2015 | | | Table of Contents Introduction 3 Timeline leading to Ebbers conviction: 3 Current Events 4 Perceived Motivations 5 Impacts 6 Conclusion 6 Bibliography 7 Introduction “The recent corporate accounting scandals at Enron, WorldCom, and other corporations have helped to fuel a massive loss of confidence in the integrity of American business, Bernie Ebbers
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D.C. 20539 ) ) Plaintiff, ) ) v. ) ) WORLDCOM, INC., ) ) Defendant. ) ___________________________________________) Civil Action No. COMPLAINT (Securities Fraud) The Securities and Exchange Commission (“the Commission”) alleges for its Complaint as follows: 1. From at least the first quarter of 2001 through the first quarter of 2002, defendant WorldCom Inc. (“WorldCom”) defrauded investors. In a scheme directed and approved by its senior management, WorldCom disguised its true operating performance
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the failure of the organization known as WorldCom. It will determine the reason for the fall of the company failure comparing and contrasting what could have been done by management and leadership. The organizational theories that could have predicted the failure of management and the impact of the company’s structure EBF 3 The company knows as WorldCom was one the leading telecommunication giants of its day. WorldCom achieved its position as a significant player
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1. What are the pressures that lead executives and managers to "cook the books?" In the 1990’s WorldCom was a growing and successful telecommunications company, involved in may acquisitions, and had made some ‘Mega Deals” in the telecommunications industry. The Company was becoming very profitable, but in 1999 revenue growth had stopped causing the price of stock to fall. This was due to the down turn in telecommunications industry, an increase in competition, the overcapacity in the telecommunications
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Sullivan (CFO)) used fraudulent accounting methods to cover its declining earnings by painting a false picture of financial growth and profitability to prop up the price of WorldCom’s stock. * The fraud was accomplished primarily in two ways: * Underreporting which is interconnection expenses with other telecommunication companies by capitalising these costs on the balance sheet rather than properly expensing them. * Inflating revenues with bogus accounting entries from "corporate unallocated
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Corporate Scandals And Regulations February 18, 2014 Introduction In recent years there has been many different regulations that have been put into effect to avoid any more accounting scandals. Some scandals that has gotten worldwide attention would be scandals such as WorldCom, Enron and Avon. These regulations have been put in place to help investors and to prevent companies from being put in situations where a scandal could arise. Companies need to pay close attention and follow
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WorldCom Case Study The problems with WorldCom are the lack of internal control, disordered corporate culture, management failure and the fraud accounting practices. In this case, the EBITDA has been largely exaggerated. A $3.8 billion EBITDA overstatement became WorldCom’s accounting shame. For companies, EBITDA is a way to measure the results of operations excluding the effect of interest, corporate income taxes, depreciation and amortization of long-term assets. It provides a way to compare
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This term is introduced to accounting students on their first introduction to accounting classes and it is also mentioned on the major headline news such as the Enron and WorldCom financial fraud cases. This term, although its main audience is people in the accounting field, has become very effective due to the major financial fraud cases such as Enron, WorldCom, Bernard Madoff and others. The main audience for this term are individuals who are related to the accounting field. Learning that an
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THE NATION’S NEWSPAPER BS2003-01a Collegiate Case Study Enron law firm called accounting practices 'creative' By Greg Farrell www.usatodaycollege.com Accounting fraud Part I: The problems “Creative accounting” is not a new technique, but it can certainly be a costly one. Businesses feel the pressure to appear profitable in order to attract investors and resources, but deceptive or fraudulent accounting practices often lead to drastic consequences. Are these so-called creative practices
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WorldCom the Rise and Fall WorldCom began in 1983 during the breakup of AT&T, which enabled competitors to start selling long distance telephone service to individuals and business customers. A group of investors from Hattiesburg, Mississippi decided to start a communications company called Long Distance Discount Services (LDDS). The company lead by Bill Fields leased a local Bell System Wide-Area Telecommunications Service (WATS) line and resold time on the line to businesses. The sophisticated
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