$11 BILLION DOLLARS FRAUD OF WORLDCOM

The WorldCom scandal was a major financial scandal that occurred in the United States in 2002, involving the telecommunications company WorldCom. The scandal was one of the largest corporate accounting frauds in history and led to the company's bankruptcy.

WorldCom had been one of the largest telecommunications companies in the world, but it was revealed that the company had engaged in a variety of fraudulent activities, including accounting fraud, insider trading, and securities fraud.

The fraud was based on WorldCom's manipulation of its financial results to make the company appear more profitable than it actually was. WorldCom executives had used a range of accounting tricks and fraudulent schemes to hide billions of dollars in expenses and inflate the company's earnings.

The scandal came to light in 2002 when a WorldCom employee uncovered evidence of accounting irregularities and brought it to the attention of the company's board of directors. This led to an internal investigation, which uncovered the scale of the fraud at WorldCom.

The fallout from the WorldCom scandal was significant, with the company filing for bankruptcy and thousands of employees losing their jobs and life savings. The scandal also led to the collapse of the accounting firm Arthur Andersen, which had been responsible for auditing WorldCom's financial statements.

The WorldCom scandal exposed serious deficiencies in the regulation of the financial industry and led to a wave of new laws and regulations aimed at improving corporate governance and increasing transparency and accountability in the financial sector. The scandal also had a lasting impact on public attitudes towards corporate behavior and the role of business in society.