WorldCom Accounts Show Another US$2 Billion in Phony Income

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Last updated at: (Beijing Time) Friday, August 09, 2002

WorldCom Accounts Show Another US$2 Billion in Phony Income

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Another 2 billion US dollars has been found to have been wrongly accounted for to bolster WorldCom's income -- on top of the already exposed 3.8 billion dollars improperly accounted, the CNBC TV reported Thursday.

The fraudulent accounting has been traced back to the year 1999.The additional 2 billion dollars was wrongly accounted during 1999and 2000. This led to the belief that former chief financial officer Scott Sullivan had used a variety of methods in his accounting fraud practices, including reversing reserves for bad debts into operating income.

WorldCom, the second largest long-distance carrier in the country, first admitted having wrongly accounted for 3.8 billion dollars expenses as incomes in an attempt to make the company lookprofitable. The massive fraud shocked the country and led the company to file for bankruptcy protection on July 21.

Sullivan and former controller David Myers were arrested on Aug.1. The company is still under legal investigation.

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