Report Says WorldCom Committed Massive Fraud

WorldCom

The cable television network reported Tuesday that the telecom carrier's board recently learned of the financial misstatements and fired the company's CFO, Scott Sullivan, within the past 48 hours. WorldCom plans to restate its financial statements soon, according to CNBC.

The CNBC report alleges that in all of 2001 and the first quarter of 2002 WorldCom treated ordinary expenditures as capital expenditures, increasing its earnings before interest, depreciation and taxes by some $3.6 billion.

The report also speculated that the beleaguered carrier will likely file for bankruptcy.

Already-battered shares of WorldCom fell approximately 65 percent to 35 cents in after-hours trading Tuesday.