WorldCom

About WorldCom

WorldCom filed for bankruptcy on July 21, 2002, with 107 billion in assets, surpassing Enron as the largest US bankruptcy. CEO Bernard Ebbers orchestrated a 11 billion accounting fraud by capitalizing operating expenses. Internal auditor Cynthia Cooper discovered the fraud. WorldCom had grown through over 60 acquisitions, becoming the second largest long distance telephone company. Ebbers was sentenced to 25 years in prison. He died in 2020 while still incarcerated. The WorldCom bankruptcy led to passage of the Sarbanes-Oxley Act, which imposed stringent corporate governance requirements. WorldCom emerged from bankruptcy as MCI in 2004 and was acquired by Verizon in 2006 for 7.6 billion.