WorldCom Restatement May Exceed $9 Billion, SEC Broadens Charges

The findings prompted the Securities and Exchange Commission to broaden the scope of charges against the carrier and allege that WorldCom misled investors as far back as 1999.

WorldCom, which is struggling to emerge from bankruptcy, in August uncovered an additional $3.3 billion in improperly reported earnings for 1999, 2000, 2001 and first-quarter 2002, raising the total to $7 billion, including $3.85 billion that was hidden as capital expenditures in 2001 and first-quarter 2002.

WorldCom said the recent review was "very preliminary" and that the restatement would not hamper its ability to service customers or emerge from bankruptcy.

In October, the carrier won approval to borrow up to $1.1 billion to continue operations while in bankruptcy. The company filed for bankruptcy protection in July, stating at the time it would need to raise at least $2 billion to stay in business.