Report: MCI Probed in Alleged Tariff Evasion - TheStreet

Report: MCI Probed in Alleged Tariff Evasion

<I>The New York Times</I> Web site reports that the carrier disguised long-distance calls as local ones.
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MCI

is under federal investigation in the alleged defrauding of hundreds of millions of dollars from other telephone companies, according to people involved in the inquiry,

The New York Times

reported on its Web site.

The key element in the alleged scheme was masking long-distance calls as local calls in order to avoid paying access charges to local carriers nationwide, the

Times

reported.

The

Times

said the probe is based on internal documents and information obtained from ex-MCI execs and the companies

AT&T

(T) - Get Report

,

SBC Communications

(SBC)

and

Verizon

(VZ) - Get Report

.