WorldCom is a global enterprise that provides telecommunications services to businesses operating as facilities based telecommunications operator and Internet service provider. WorldCom considers itself a worldwide leader in providing every data service available. WorldCom's global network has more direct access points, a greater reach and more capacity than any other comparable company. WorldCom was the first company to bring competition to long distance services in the United States. They were also the first to build an end-to-end, local, national and international fiber-optic network in Europe. As anyone can see WorldCom is a very large, very diverse telecommunications company. .
One of the important issues raised in the press in respect to the WorldCom Corporation was that U.S. Securities and Exchange Commission has formally charged WorldCom with fraud for accounting improprieties that made the company look like a money-maker when it was in fact losing billions. SEC claimed that WorldCom disguised its true operating performance by using undisclosed and improper accounting that materially overstated its income. WorldCom has done this through a scheme directed and approved by its senior management. The SEC filing also seeks to ensure that all documents relevant to the WorldCom accounting scandal be preserved. SEC wants to ensure WorldCom does not destroy any documents or information related to the SEC's pending investigation, and to ensure no asset dissipation occurs to any affiliates, or current or former officers, directors or employees from the company. Finally last week of June of 2002, SEC filed a lawsuit in U.S. District Court for the Southern District of New York against WorldCom Inc. They charged the company with fraud and asking a court to block the destruction of documents and the payment of extraordinary bonuses to executives. The suit was filed the day after WorldCom announced that it would restate its financial reports for 2001 and the first quarter of 2002 after discovering accounting irregularities that totaled nearly US $4 billion.