Feeds

WorldCom accounting disaster doubles

Ooops, there goes another $3.3 Bn

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Embattled telecoms monstrosity WorldCom has just announced the discovery of an additional $3.3 billion minrepresented in falsified financial reports, adding to the $3.6 billion scam revealed earlier in which operating expenses were slyly listed as capital expenses.

Additional shenanigans of that sort have been disclosed, in addition to another scam whereby the company was maintaining a vast slush fund out of which it moved cash to cover bad debts and conceal profit disappointments.

It's not illegal to maintain a cash reserve; Microsoft, for example, exhibits considerable pride in the gargantuan pile it has stored up for rainy-day needs. But covering bad investments and faking profits are quite illegal; and if it can be proven that WorldCom used its 'reserves' in this way it's only a matter of time before its old guard brass end up in prison stripes.

For a final horror, WorldCom warns that once its earnings are restated, it may have to write-off up to $50 billion as the actual value of its many over-inflated investments and acquisitions is painfully calculated and revealed.

One wonders if the bankruptcy settlement now in the works will actually prove feasible, what with all this bad news piling on. For the sake of the company's deceived and patronized investors, and its many sacked workers, one certainly hopes it will. ®

Security for virtualized datacentres

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.