The first was the motivation on the part of Ebbers and Sullivan. The second was the complicity of employees within WorldCom's accounting department. The third was the complicity of the external auditor, Arthur Andersen. In order to prevent such frauds from occurring, these different factors should be addressed. With respect tot Ebbers and Sullivan, two problems occurred that should be prevented in future. The first is the heavy emphasis on

The first three organizations in line to recuperate their funds were Citigroup, J.P. Morgan and General Electric Group. They had been offering financial solutions and encouragement to purchase the WorldCom stock based on a favorable business relationship. However, at the time when bankruptcy procedures were commenced, the three organizations recognized their losses and intended to recuperate them. A succinct presentation of the period surrounding the crisis could be reveled by

Madoff Investment Securities LLC (BLMIS) committed one of the greatest financial frauds in U.S. history. Investigations revealed that Mr. Madoff operated an elaborate "Ponzi Scheme" that started operating in 1980s.Even though Madoff was initially supposed to invest all of his clients' money in the securities markets, he never did so. Instead, he deposited the whole amount in a certain bank account that he held with the Chase Manhattan Bank.

WorldCom: The Ethics of Whistle-Blowing In recent years, it has not been easy for employees to completely trust the corporations for which they work. Accounting scandals have made the average employee question business practices unlike before. The large corporate American framework built in culture; vision, core values, accountability and self-worth seem to have gone out the window with a certain degree of worry. Is it risky to work for a big

SWISSAIR'S (EX NATIONAL SWISS AIRLINES) BANKRUPTCY On October 2, 2001, dozens of aircraft stood grounded at Zurich Unique Airport. Flights could not take off due to the simple lack of cash flow. Swissair, the airline that flew the flag and pride of the Swiss people, had declared bankruptcy. While many people knew that Swissair was ill, maybe even very ill, no one ever thought it could reach this level of gross

Cooper/WorldCom In 2001, WorldCom was a company at the top of its game. Although 2001 was difficult for them, it was difficult for all telephone companies. The number of local phone companies had dropped from 330 to 150 in 2000. They lost market share and encountered significant competition to their internet services. However, it still had more than $30 billion in annual revenues, and even after extensive layoffs, had over 60,000