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SEC Boosts WorldCom Toll to $9 Billion

The agency says the company's profit overstatement was $1.8 billion greater than it had said.
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The Securities and Exchange Commission expanded its investigation of WorldCom Tuesday, saying the failed telco's financial fraud was larger and further-reaching than previously indicated.

The amended complaint indicates that the company's profits were misstated by $9 billion over the course of three years. That's $1.8 billion more in false profits than the company has disclosed up till now. The SEC also said the WorldCom fraud started in 1999; previously the accounting issues were believed to start in 2000.

WorldCom filed bankruptcy this summer after the company disclosed in June that it would have to restate more than $3 billion in improperly booked expenses. The company's financial papers since the bankruptcy filing indicate that WorldCom continues to lose huge amounts of money, raising questions as to

what the company might look like when it emerges from Chapter 11.

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