Question

WorldCom Fraud Video Discussion Watch "The Big Lie: Inside the Rise and Fraud of WorldCom" at the following link: http://proxy.centralmethodist.edu/login?url=http://fod.infobase.com/PortalPlaylists.aspx?wID=113956&xtid=39102 (Click on Play Full Title on left side of page.) Give a brief explanation of the fraud that was committed. Then, how does this video show the different costs of fraud? If you were an employee for this company, what would you have done?

Answer 1

Worldcom was a big telcom giant company. CNBC had prepared a documentary on the rise and fall of this company. They exposed a huge accounting fraud which took place in WorldCom. Its owner was named as Bernie.

He was a gym teacher who converted a small company to a giant empire. He made frauds with investors in way of building his empire. His company had presence in 65 countries worldwide.

Different costs of fraud includes not only financial losses to company. It also affects reputation of company. Cash flow become disrupted. No raw material is being supplied.

Shares of company fall down with drastic pace. Employess don't get salaries and chances of company being recovered are diminished through significant amount.

Being an employee of such company its better to quit. I would have applied somewhere else. After working in such company, a person gets the experiances of malafied intentions and practices. These realisations can be utilised in new company for preventing any future anarchy.