The Cynthia Coper Case.

ifechukwu Anunobi Written by Anunobi ifechukwu · 1 min read >

The Cynthia coper case was about a courageous work college that found fraud in the accounting statement of the company world com and the was the whistle blower of the company. This was taught in Business Ethics course.

 Worldcom was a leading long distance phone companies in America specifically it was a long distance landline and mobile phone service provider that was founded in Mississippi in 1983 it was the 25th largest company in the world in 2000 and at that time was worth $175 billion Tatian of various telecom company‘s theory will come committed a mess I’m not afraid to make a copy if you’re much more successful than it actually was view of what went wrong at the farm for much of the 1990s WorldCom CEO Bernard Evers chief strategy for growing the business required dozens of increasingly large telecom firms design of these acquisitions was a $37 billion merger with MCI in 1998 by the end of the decade it is estimated that WorldCom handled nearly half of all Internet and data communications and owned a third of all data cables in the US the industry quickly took a downturn however and after a merger with Sprint was denied due to anti-trust laws they were no more firms to acquire and WorldCom was left to rely on the leader ship of Evers with so much of the companies estimated $185 billion market Tied to continuously rising stock prices that the company meet what we’re progressively unrealistic target and see if Scott  Sullivan did whatever was needed to appease Evers beginning in 1999 at the direction of Sullivan the company begin implementing the relatively unsophisticated accounting practices of classifying operating expenses as long-term capital investments reserve money is a Avenue by doing so WorldCom inflated its own assets buy as much as $11 billion after Evers retired in April 2002 and internal audit team discovered the discrepancies and an already suspicious SEC begin an investigation by July 2000 to less than a month after the improper accounting was revealed WorldCom filed for bankruptcy valued at $107 billion this filing to the world  that bankruptcy in the fall of 2001 and at the time was the largest in US history Evers and Sullivan were both charged with and found guilty of a number of counts of fraud and violating securities laws Evers was sentenced to 25 years and Sullivan received five years in jail and exchange for taking the stand.

so as the company  got so far in the late 1990s world comedy and struggling to me Wall Street  expectations in the year 2000 senior management instructed the accounting team to dip into the reserve a chance to make up for the gas in meeting expected earnings which amounted to about $800 million by the time Betty Vinson was the Director of management reporting that she worked out WorldCom for about five years she was very uncomfortable with this false entry it was a shared by her manager so it would never need to happen again she debated quitting but that he was terrified to lose her steady job high income and insurance coverage especially as middle-aged woman and the breadwinner of the family of course the financial problems are welcome lingo over the next year and CFO Scott Sullivan advised the hundreds of millions of dollars in line cost be shifted from operating expenses to capital city.

#MBA 21

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