WorldCom submitting requested documents to SEC

Posted 7:57AM on Wednesday 13th March 2002 ( 23 years ago )

CLINTON, Miss. - WorldCom Inc., the nation's No. 2 long-distance company, said it will furnish several documents requested by the Securities and Exchange Commission. The SEC told the Clinton-based telecommunications giant in a letter that the inquiry is "confidential and should not be construed as an indication by the Commission ... that any violation of law has occurred." WorldCom said Monday it planned to respond to the voluntary request it received late last week. WorldCom's stock price, which peaked at $64.50 on June 21, 1999, has been battered in recent weeks amid concerns about debt load and chief executive Bernie Ebbers' ability to repay a $340 million loan from the company to buy WorldCom shares. Shares of WorldCom closed down 18 cents on Monday at $9.01. In an interview with CNBC Monday, Ebbers said part of the SEC request was related to a loan the company made him. The SEC made 24 requests of WorldCom, including a request that the company turn over documents for the quarter ended Sept. 30, 2000. The inquiry also focuses on disputed customer bills and sales commissions, loans by WorldCom to officers or directors, customer service contracts and organizational charts and personnel records for former employees. WorldCom said its policies, practices and procedures are in accordance with the law. The company said it is not aware of any information that would give rise to the commission's inquiry. The agency wants documents detailing that quarter's pretax charge associated with domestic and international wholesale accounts that are no longer deemed collectible. The company's tracking of Wall Street earnings estimates and the integration of WorldCom's computers with those of the former MCI Communications Corp., and any other federal or state investigations are part of the SEC's inquiry. The requests were made after WorldCom auditors revealed in February that some six to 12 salespeople boosted their commissions by as much as $4 million through unethical practices. The employees, most of whom are based in Arlington, Va., have been suspended without pay, resigned or fired, the company said. WorldCom is a global communications provider that operates in more than 65 countries. The total amount involved in the commissions scandal was between $1 million and $4 million, the company said. Last week, California Attorney General Bill Lockyer and his state's utility regulators reached an $8.5 million settlement with WorldCom, over slamming, cramming and unfair business practices.

http://accesswdun.com/article/2002/3/197551