graphic
graphic  
graphic
News > Companies
graphic
Ex-WorldCom employee gave warning
Worker in London office alerted British authorities in 1999, but word never reached U.S.
August 20, 2002: 8:00 AM EDT

NEW YORK (CNN/Money) - A former employee at WorldCom's London unit alleges she tipped off British authorities to possible accounting fraud at the company as far back as 1999, but the warning never made it to U.S. regulators, according to a published report Tuesday.

Geraldine Kelly, a former WorldCom bookkeeper, provided the U.S. House Energy and Commerce Committee with a sworn affidavit claiming she alerted Britain's Department of Trade & Industry to accounting fraud at WorldCom's London office in 1999, according to the Wall Street Journal.

After disclosing an additional $3.4 billion in accounting irregularities earlier this month, which brought its total misstatement to $7.2 billion, WorldCom said $217 million of the irregularities came from 1999.

Kelly left WorldCom in 1999, but accounts vary on whether she was fired or left of her own accord. If she was fired, as one person involved with the House investigation told the paper, it could raise questions about the nature of her testimony.

Memos from another London office executive released earlier this summer warned senior WorldCom officials and the company's former auditor, Arthur Andersen, that the company was overstating profits, but no action was taken, according to the Journal.  Top of page




  More on NEWS
Congress moves to extend jobless benefits
Why the Copenhagen climate talks matter
Stock rally: Rest or recharge
  TODAY'S TOP STORIES
Why Copenhagen climate talks matter
Class of '09: They're finally working
Best time of year to land a job




graphic graphic

© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.