preview

Why The Ceo Bernard Ebbers And The Cfo Scott Sullivan Committed Financial Statement Fraud

Better Essays
Abstract
This research conducted on the investigation of a world wide known company WorldCom, a company that had stolen billions in dollars from investors, competitors, and employees financial, to help live the senior managers lives more luxurious. This research paper will go more in depth to why the CEO Bernard Ebbers and the CFO Scott Sullivan committed financial statement fraud to benefit themselves. This will tell us behind the scenes of the investigation conducted against WorldCom and the consequences suffered to those who committed and helped with the fraud and how to this day WorldCom is still successful.
Overview
WorldCom Inc. developed in 1983 under the name as “Long Distance Telephone provider called Long Distance Discount Services, Inc. (later part of a holding company called LDDS Communications, Inc.). LDDS became a public company in 1989 through a merger with Advantage Companies, Inc.”(Report of Investigations). LDDS competed with major long distance carriers such as AT&T, MCI, and Sprint; they grew steadily “purchasing small long distance companies throughout the early 1990s”(Report of Investigations). Between the years of 1991 and 1993 LDDS “acquired and merged with MidAmerican (Report of Investigations). In May 25, 1995 “LDDS officially became known as WorldCom after a shareholder voted”(Report of Investigations). WorldCom continued to aggressively grow and become diversify the business through acquisitions, sometimes using its common stock as currency.
Get Access