What would become WorldCom began in 1983 as Long Distance Discount Services, or LDDS. This company grew through series of fast acquisitions. Including a take over of much larger MCI (1 ).
WorldCom is another corporation that was caught in a questionable book keeping scandal. In 2002 the company reported making a profit, but in reality it has lost 1.5 billion the previous two years (2 ).
WorldCom announced that 3.9 billion in improper accounting lead to its bankruptcy. Before this the telecom has been troubled by loose business practices, inadequate financial disclosure, and widespread internal chicanery and corruption (3 ).
An internal auditor began asking questions about WorldCom questionable bookkeeping. It was eventually discovered 11 billion in cooked books(4 ).