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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




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.