According to the Security and Exchange Commission, “Beginning in 1999 and continuing through May 2002, the company (WorldCom) under the direction of Bernie Ebbers (CEO and President), Scott Sullivan (CFO), David Myers (Controller), and Buford “Buddy” Yates (Director of General Accounting) used fraudulent accounting methods to mask its declining financial condition by painting a false picture of financial growth and profitability to prop up the price of WorldCom’s stock. The fraud was accomplished primarily in two ways -  by capitalizing interconnection expenses with other telecommunication companies rather than properly expensing them and inflating revenues with bogus accounting entries from ‘corporate unallocated revenue accounts’.

At trial, Scott Sullivan admitted, under oath, that WorldCom adjusted some of its revenue figures, such as credits for over-billing, with the goal of meeting Wall Street analysts' growth expectations. Once a bill is issued, regardless of how much inflated, the company would count the money as revenue and is not required to wait until the funds are received.

Bernie Ebbers, Scott Sullivan, David Myers, and Buford “Buddy” Yates were punished. Investors were protected.

But the real victims of the largest fraud in American history, WorldCom’s customers who received the fraudulently inflated bills, have been left to fend for themselves.

WorldCom changed its name to MCI then recently changed its name again to Verizon Business in an attempt to shake its negative image but it’s still the same company that defrauded it’s investors and customers. Now, one small business will hold the company to account for its actions.

On March 20, 2008, in the U. S. Bankruptcy Court of the Eastern District of Virginia, Verizon Business must defend WorldCom’s fraudulent billing practices.

Technology Management & Integration Co., Inc. (TMIC) intends to prove that it was billed by WorldCom for services before the services were actually made available for use; installation fees that were not quoted or higher than quoted; Monthly Recurring Charges (MRC) higher than quoted; taxes, surcharges, and user fees that were specifically quoted as being included in MRC; taxes at incredible rates, "expedite" fees when provisioning of circuits were not expedited; charges for services after services were discontinued; charges for services that were not ordered; expenses incurred to repair WorldCom's technical problems; and finance charges based on inflated account balances.

According to TMIC spokesman, John Longfellow, “WorldCom also applied credits to incorrect accounts for payments made by TMIC and failed to apply credits to any account for many payments made by TMIC to inflate accounts receivables and then billed finance charges based on inflated account balances.”

Verizon Business has denied the charges, but has already raised the ire of the presiding judge who wrote, “The court notes with considerable displeasure the rote pleading by Verizon of affirmative defenses, most, if not all of which, could not possibly apply to the present dispute.”

John Longfellow has stated, “The facts and evidence in this matter are overwhelmingly in favor of TMIC. Why Verizon Business doesn’t simply acknowledge WorldCom’s legacy of billing fraud and do the right thing is a mystery to me. If they don’t, after they loose at the evidentiary hearing, the next action will be in state court where punitive damages will be in play.”

Media Contact:

John Longfellow    This email address is being protected from spam bots, you need Javascript enabled to view it

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