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BUSINESS
June 27, 2002 | WALTER HAMILTON, TIMES STAFF WRITER
WorldCom Inc.'s disclosure of a potentially titanic accounting fraud ratchets up the pressure on securities regulators and criminal prosecutors to prove they are taking aggressive steps to punish executives who break the law. In a demonstration of that urgency, the Securities and Exchange Commission filed a civil-fraud lawsuit against WorldCom in U.S. District Court in Manhattan on Wednesday evening.
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BUSINESS
June 27, 2002 | From Bloomberg News
New York Atty. Gen. Eliot Spitzer said Wednesday that his office will investigate analyst commentary on WorldCom Inc., which had a "buy" rating from star telecom analyst Jack Grubman at Citigroup Inc.'s Salomon Smith Barney from 1997 through this April. Just Monday, with the stock down more than 90% from December, Grubman cut his rating to "under-perform" from "neutral." "It did catch many people's eye that he finally issued a downgrade," Spitzer said.
BUSINESS
June 27, 2002 | E. SCOTT RECKARD, TIMES STAFF WRITER
As WorldCom Inc. bonds plunged Wednesday, news of the long-distance company's alleged $3.9-billion accounting fraud dragged down securities of other telecom companies and the banks that have financed them. Investors in Clinton, Miss.-based WorldCom held debt securities with a face value of $28 billion, including $11.9 billion issued last year in the biggest bond sale by a U.S. company.
BUSINESS
June 27, 2002 | MARK FINEMAN, TIMES STAFF WRITER
As telecommunications giant WorldCom Inc. tumbles toward almost certain bankruptcy, the campaign finance industry that fuels politics on Capitol Hill is in danger of losing yet another multimillion-dollar player.
BUSINESS
June 27, 2002 | PETER G. GOSSELIN and JAMES FLANIGAN, TIMES STAFF WRITERS
WASHINGTON -- Until WorldCom Inc.'s admission that it improperly accounted for $3.9 billion in expenses, the revelations of business misdeeds beginning with Enron's collapse in early December looked as if they would produce little more than some arcane accounting changes and a few prosecutions.
BUSINESS
March 27, 2002 | JAMES S. GRANELLI, TIMES STAFF WRITER
A creditor's effort to evict Global Crossing Ltd. from a New York site where a fiber-optic cable from England hooks into the network of U.S. land lines would wipe out a third of Global's transatlantic telephone traffic and slash the company's value to potential buyers, the company argues in a court document. The attempt by Level 3 Communications Ltd.
NEWS
March 15, 2002 | EDMUND SANDERS and JEFF LEEDS, TIMES STAFF WRITERS
Federal prosecutors Thursday hit accounting firm Andersen with a criminal indictment for allegedly orchestrating the "wholesale destruction" of tons of Enron Corp. documents, raising new doubts about Andersen's survival. The one-count indictment is the first of what Justice Department officials hinted could be a string of criminal charges arising from the collapse of energy giant Enron, which filed for Chapter 11 bankruptcy protection Dec. 2 amid an accounting scandal.
NEWS
February 7, 2002 | NANCY RIVERA BROOKS and LEE ROMNEY, TIMES STAFF WRITERS
When former Enron Corp. Chief Executive Jeffrey K. Skilling appears at a hearing on Capitol Hill today, he will be pressed by lawmakers on his failure to control controversial Enron partnerships. But if his dealings with Enron's internal investigative committee are a guide, he is almost certain to point to aggressive underlings as the main culprits in a series of complicated financial transactions that eventually brought about the energy trader's collapse.
BUSINESS
February 6, 2002 | RICHARD SIMON and EDMUND SANDERS, TIMES STAFF WRITERS
Former Enron Corp. Chairman Kenneth L. Lay acknowledged to company investigators that he should have kept a closer eye on the energy trader's financial operations, but he also pointed the finger at subordinates, the head of the company's internal investigation told Congress on Tuesday. "I think he felt he had not been watching carefully enough, but he certainly felt he had been betrayed," said William C.
BUSINESS
February 5, 2002 | EDMUND SANDERS and RICHARD SIMON, TIMES STAFF WRITERS
Congressional investigators prepared Monday to subpoena former Enron Corp. Chairman Kenneth L. Lay to appear before their panels, while the Justice Department rejected calls for the appointment of an independent counsel to investigate the energy giant's collapse. At a hearing on Capitol Hill, the nation's top securities regulator confirmed his agency postponed a routine review of Enron's financial statements in 2000, in part because Enron appeared to be healthy.
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