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WorldCom disclosed last month that it had improperly accounted for $3.8 billion in expenses.
The WorldCom filing had been anticipated since the company disclosed in late June that it had improperly accounted for more than $3.8 billion of expenses.
Those investigations have rapidly picked up pace in the two days since the company announced that it had improperly accounted for more than $3.8 billion in expenses.
Mr. Grubman did not downgrade WorldCom until June, a day before the company announced that it had improperly accounted for $3.8 billion in expenses.
The company said that it had improperly accounted for billions of dollars in costs, a move that artificially inflated the company's reported cash flow.
WorldCom, which sought bankruptcy protection last month after disclosing that it had improperly accounted for $3.8 billion in expenses, has uncovered $3.3 billion in additional accounting irregularities.
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But PricewaterhouseCoopers said that the company appeared to have improperly accounted for some of the derivatives in its portfolio.
Fannie Mae, the giant housing finance company, has improperly accounted for some of the bonds in its $1 trillion portfolio, a federal regulator said yesterday.
In 2002, the chief executive of TV Guide's parent company was found to have improperly accounted for about $120 million in revenue, and the News Corporation had to take a write-down of almost $6 billion on its investment in that company in 2002.
The deals that AOL did with WorldCom and Qwest are part of the paltry $49 million in revenue that AOL alerted the Securities and Exchange Commission SECC) it may have improperly accounted for on Aug.14, so there's really no additional scandal here.
The release said that a recent review of expenses that had been improperly accounted for at the European operations of McCann-Erickson had found more problems.
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