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Non-Tech : The Enron Scandal - Unmoderated -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (2640)	4/1/2003 10:03:20 AM
From: James Calladine	Read Replies (2) \| Respond to of 3602

Only by $11b? I note the article said that Worldcom didn't expect to find any more "mistakes". But then again, whatever the process was that these "mistakes" occurred in the first place, I don't suppose that they expected that they would be found then either........<gggg> And now we have a foreign war in full bloom, who has much attention for this sort of thing....? What was that movie again, WAG THE DOG? Namaste! Jim

To: Glenn Petersen who wrote (2640)	5/19/2003 9:44:21 AM
From: Glenn Petersen	Read Replies (1) \| Respond to of 3602

Source: WorldCom Close to SEC Settlement Monday May 19, 7:09 am ET By Jessica Hall biz.yahoo.com PHILADELPHIA (Reuters) - WorldCom Inc. (Other OTC:WCOEQ.PK - News) is close to a settlement with the U.S. Securities and Exchange Commission (News - Websites) that would resolve charges it fraudulently misled investors and would require it to pay one of the largest fines ever levied by the agency, a source familiar with the situation said on Sunday. The settlement would remove a major hurdle for the bankrupt telephone and data services company, whose accounting scandal is expected to top $11 billion. It also will likely ease its emergence from Chapter 11 bankruptcy, legal experts have said. WorldCom, which is changing its name back to MCI, declined to comment. SEC officials could not be immediately reached. Business Week's online edition reported on Friday that WorldCom and the SEC could announce a settlement as early as Monday. WorldCom, without admitting or denying the fraud allegations, had reached a partial settlement with SEC in November. As part of that deal, WorldCom agreed to refrain from future securities violations and establish new training programs to prevent future problems. WorldCom's fine is expected to be "several times larger" than the $10 million fine levied against Xerox Corp. (NYSE:XRX - News) in 2002, the source said. Wall Street firms recently agreed to pay $1.4 billion to settle charges with securities regulators over research practices. The SEC, which regulates financial markets, charged WorldCom in June with fraud and alleged the company manipulated its financial records at least as early as 1999 to meet Wall Street expectations. WorldCom is expected to restate more than $11 billion in earnings. The Ashburn, Virginia-based company, which still faces shareholder lawsuits, recently filed a reorganization plan that will cut its debt to a range of $3.5 billion to $4.5 billion, down from $41 billion, and give its creditors control of the company. Since its bankruptcy filing in July, WorldCom has hired a new chairman and overhauled its management team and board. The company's former chief financial officer, Scott Sullivan, has been charged with securities fraud, conspiracy, and making false statements about WorldCom's financial health in SEC filings. Four other former WorldCom executives pleaded guilty to securities fraud and have agreed to cooperate with authorities probing the case. WorldCom, which aims to emerge from bankruptcy later this year, also is cooperating with the investigation. Two reports reviewing WorldCom's past accounting practices have been delayed at the request of prosecutors, who claimed that early public disclosure of the information may harm their criminal investigations of former Chief Executive Bernie Ebbers and other former WorldCom executives, according to court filings. The reports are expected to be filed in June.