- Peter Kinder resigns federal agency post, concludes position unnecessary and waste of tax dollars (6/16/18)2
- Longtime downtown Cape bartender Marcellus Jones remembered by friends (6/12/18)2
- Committee to start planning process for indoor aquatic center in Cape (6/20/18)1
- Stormy Daniels to visit East Cape Girardeau (6/13/18)20
- Southeast to spend $150,000 to refresh brand with Ohio firm (6/19/18)6
- A community rallies behind Honorable Young Men's Club (6/16/18)1
- New urban dance studio opens on Broadway (6/15/18)2
- Jackson natives compete in 260-mile canoe race (6/16/18)1
- Mother, child reportedly hit by car in Cape Girardeau (6/18/18)
- Neal Boyd blessed us all with his God-given talent (6/19/18)
WorldCom charges expand
WASHINGTON -- The government on Tuesday expanded its civil fraud charges against WorldCom and the company raised its estimate of inflated earnings to more than $9 billion in one of the most stunning accounting scandals of the year.
The Securities and Exchange Commission announced that it had broadened the scope of its civil fraud charges, originally filed against the telecom company in June, to include an additional charge and to allege that WorldCom misled investors starting at least as early as 1999 through the first quarter of this year.
WorldCom is in settlement talks with the SEC.
The nation's second-largest long-distance carrier said it told the SEC during those discussions that it expects an additional earnings restatement that could bring the total hole in its books to more than $9 billion.
WorldCom announced $4 billion in financial misstatements in late June. That estimate was later raised by the company to around $7 billion.
The company said Tuesday that the additional restatements "have no impact on its ability to continue to provide service" or to emerge from bankruptcy protection, which it expects to do in mid-2003.