Feeds

MCI faces new fraud inquiry

Call for Capellas to resign

  • alert
  • submit to reddit

Internet Security Threat Report 2014

MCI - aka Worldcom and currently battling Chapter 11 bankruptcy protection following its $11bn accounting scandal - is at the centre of a fresh round of allegations concerning its murky past.

Rival telco AT&T Corp accused MCI of improperly rerouting long-distance calls in the US and Canada in order to avoid paying hundreds of millions of dollars in access fees to other phone companies.

The allegations - which also alleged that this practise put national security at risk because it exposed Government phone calls to eavesdroppers - were made in a filing to the US Bankruptcy Court yesterday.

Responding to the allegations MCI chairman and chief exec, Michael D Capellas, said the company had met the US Attorneys Office to understand the exact nature of the inquiry.

"We committed to them our full cooperation in their efforts. We also are conducting our own internal analysis and are working vigorously to gather data so that we can provide the most complete set of facts.

"As I have said all along, we will do the right thing. We have a zero-tolerance policy and if any wrongdoing is discovered you can be certain that we will take appropriate action swiftly."

However, this tough talking has failed to convince critics that MCI is dealing with its past.

Mitch Marcus, a former WorldCom account manager and
the founder of lobby site BoycottMCI.com, has called on Capellas to resign over this latest matter claiming that the "culture of corporate corruption runs deep at MCI/WorldCom".

Last month two reports into the collapse of WorldCom were critical of the company arguing that a strong culture of secrecy saw management repeatedly burying financial data from its board and auditors. ®

Related Stories

Judge waves through Worldcom $750m settlement
Reports slam WorldCom corporate culture
WorldCom to adopt MCI name

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.