WorldCom faces $3.8bn fraud claim

CFO sacked as books reveal massive discrepancies...

The financial woes of WorldCom continue to deepen today following the sacking of the company's CFO over fraud claims of around $3.8bn. The group is having to restate its 2001 and first quarter 2002 financial results after an internal audit discovered that $3.8bn of operating expenses had been incorrectly reported as capital spending. The company's shares fell 75 per cent in after-hours trading after US media reported that CFO Scott Sullivan had been sacked. The news is likely to rock Nasdaq today when it opens. WorldCom owes around $30bn in debt. European bourses were adversely affected in early trading this morning, with the FTSE down by 3.83 per cent. More to follow...