The WorldCom Scandal - The Full Story | Lies, Expenses, and Accounting | History in the Dark

The fall of WorldCom resulted in the largest bankruptcy in American history at that time, just a year after Enron which held that title. WorldCom's bankruptcy was oddly similar in terms of what the company was trying to do: inflate their stock price. Though their method for doing so was different and much simpler.
🚂 Further reading 🚂
schuellerworld...
en.wikipedia.o...
en.wikipedia.o....
🟢Join this channel to get access to perks:
/ @historyinthedark
🟢Patreon - / darknessthecurse
🟣Discord - / discord
🔴Cameo - www.cameo.com/...
🔵Facebook - / history-in-the-dark-10...
🟢Donations - streamlabs.com...
🔴Reddit - / historyinthedark
🔴Tiktok - / historyinthedark
🟣Instagram - / historyinthedark
🔵Twitter - / darkthecurse
🟣Merch - / @historyinthedark
🟣Twitch - / edgerabbit
Other channels:
🟢Prehistory in the Dark: / @prehistoryinthedark
🟣Gaming and Fanfic Readings: / @darknessthecurse
🟣History Stuff: / @historyinthedark
👔Merch: streamlabs.com...
---
I WRITE BOOKS! YOU CAN FIND THEM HERE:
📚Abyss: www.amazon.com...
📚Pryde: www.amazon.com...
📚Abyss on Audible: www.amazon.com...
#history #truestory #documentary

[@MN-zi6hb]

Credit to the Audit team for holding their ground to get to the truth.

[@tonyplaysthemambo]

As the daughter of a CPA, you never want an accountant or auditor to leave you on read. It probably means you're going to jail.

[@SunnySky-]

That audit team is the dream team i love that she left him unanswered.

[@TheGs4_4449]

I’d never in my life expect too hear Darkness say “that’s pretty sus”, nor I’d expect him to have a family guy clip/meme in his video to use as an example I love it

[@ALCO-C855-fan]

Yep. Also 3.8 billion DOLLARS?!?!?! You could as well restore all Y6b's with that!!!

[@TheGs4_4449]

@@ALCO-C855-fan Yep!

[@ALCO-C855-fan]

@@TheGs4_4449 Aren't you that S1 guy from DA?

[@TheGs4_4449]

@@ALCO-C855-fan …you mean the one on r/trainmemes? Yes

[@ALCO-C855-fan]

@@TheGs4_4449 I mean don't I know you from DeviantArt?

[@toribug1899]

Got ‘algorithm-ed’ the Radio Shack video over the long weekend and I’ve been making my way through the rest. Went ahead and subbed, good work

[@XchampionXFTW]

Me too lol

[@tgamron]

I used to work for WorldCon. I was there during the bankruptcy. What a mess.

[@ethancampbell5373]

Loved the video! Hope you can afford to upgrade the microphone quality soon! It’s not terrible but I think the video itself was really put together well and the increased quality of the microphone would put this video and the others over the top!

[@michaelsullivan2361]

You should do an analysis of Global Crossing & Gary Winnick. I had the displeasure of being a cog in that machine.

[@I_Am_Your_Problem]

Enron, Worldcom, Qwest, Global Crossing, Dynegy, Tellium.

[@Billblom]

And you can't miss the rail connection with one of the biggies: Sprint. Formed when Southern Pacific's signal system had excess capacity due to use of Fiber, rather than old style copper.... It was named "Sprint" to imply Fast, and folk Southern Pacifc into the name.....

[@alexhajnal107]

The name was originally an acronym for Southern Pacific Railroad Internal Networking Telephony. Edit: The name was selected via a contest when the subsidiary was shifting its focus from internal railroad operations to the commercial market and decided a rebrand was in order.

[@Billblom]

@@alexhajnal107 Yup. and implied fast... after all the competition was all on Microwave for long lines. The big problem for Sprint: since it was under their track, it only was really available near the ROW for the first several years. Having it as an alternate Long Distance backbone was great competition for AT&T

[@RT-qd8yl]

@@alexhajnal107 Or was that a backronym?

[@alexhajnal107]

@@RT-qd8yl AFAIK it wasn't a backronym.

[@LordMarcus]

My dad had an outsized hand implementing all that fiber.

[@truthwithes6690]

Internal team was awesome. Cooper was like hell no not on my watch. She wasn't going down.

[@GregBartlesbyProductions]

Her book/autobio is good. Was required reading for my cost actg class.

[@concernedcitizen9466]

Towards the end of that corp drama, I caught them double billing me.

[@Straswa]

Great work Darkness. Glad to hear the Audit team held their ground and brought the wrong-doing to light.

[@alexhajnal107]

Yes, quite impressive, the fraud, the determined investigator, and the video. On a related note, you might be interested in looking in to Nick Leeson and the downfall of Barings Bank.

[@ALCO-C855-fan]

Founded in 1985. Like ENRON. What a curse...

[@williampetry]

Same year I was founded (born). Curse indeed, can confirm

[@ALCO-C855-fan]

@@williampetry XD!!! Good response there!And after Enron and Worldcom comes PennCentral, the WORST bancruptcy in railroad history. Hopefully unsurpassable.

[@imperial_corner]

"Stop it, get some help."

[@ALCO-C855-fan]

3.8 billion DOLLARS?!?!?! You could as well restore all Y6b's with that!!!

[@TerryWhisk]

You can fix the awful audio quality by spending more then $40 on a mic. This sounds like you recorded it into a phone’s memo app

[@andrewbowen4544]

Darkness you've done Penn Central, Enron, Blockbuster now WorldCom what about PanAm

[@ad6417]

My husband worked at the MCI World Com data center in Napa California. When EDS bought them out one of the things that they found during the audit was people had excessive amounts of comp time. There was one guy that my husband worked with who was having an affair with a woman from HR and she had logged nearly a year of comp time for him in their payroll system. Of course it all came out during the EDS audit and they were both fired.

[@dcooper1535]

Castle Bank & Trust in the Bahamas was the classic offshore bank account scam, losing many people - including noteworthy celebrities - a lot of money.

[@bhermsworld7493]

Wow really digging this channel 🔥 great vids 💯. You got a new fan for sure 😊

[@tonycrabtree3416]

The prepaid capacity was writing off of income from long distance packages as a cost, but they also captured it as income.

[@pkat]

Nice! But this barely makes the top 10 business frauds in US history. How about FTX Theranos Ivan Boesky Bernie Madoff Wells Fargo

[@JamesAllmond]

This was before all those thieves (except may be Madoff who was just s con man) and the reason for SOX laws... that were supposed to prevent those thieves and eventually caught them...and has made life miserable for anyone in IT or Accounting working for large companies in the US...

[@michaelmoses8745]

The guy will probably get there eventually. I shudder to think about understanding all the documents in the bankruptcy. There's quite a lot of them.

[@Grnfinger]

James Garner, I remember him pitching for MCI back in the day. ahh nostalgia.

[@awesomesauce8083]

I knew a lot of good people who worked for worldcom, who didn't deserve this.

[@manicmechanic448]

The math didn't math.

[@RichardBaran]

"and that was weird and not normal" idk why but that line made me laugh.

[@downix]

I knew people who worked for Worldcom. They were completely blindsided.

[@spicemasterii6775]

I thought KPMG was a radio station

[@Grnfinger]

No thats WKRP :)

[@UncleJoeLITE]

Still bingeing trains and companies from Canberra. Cheers.🇦🇺

[@TheLegitAlpha]

Decades later FTX would pull a similar fraud.

[@robertwilloughby8050]

The Vehicle & General collapse is interesting. This is just a slow, sad, not really anyone's fault, retreat from greatness, from their glory days in the mid 60's to their collapse in 1972. Oh, and it's another insurance company. Yeah, there was a bit of a problem with UK insurance from about 1960 to 1975....😅 Edit - Someone (thank you for this, it's a great simile!) compared business crashes to the worst railway engines. This is the British Rail Class 07 of business failures.

[@angrydachshund]

You just appeared in my feed, first time, but the sound quality is grating. I wish you had a better microphone!

[@johnnybradley4107]

I still have 400 shares of their stock. Anyone want to buy it!LOL

[@ederorellana9919]

Billions of dollars in fraud and some of them only did a year in jail. I know guys that got more for a joint. It’s ridiculous.

[@Ryman158]

17:01 Profit Margin is expressed as a percentage, not a dollar amount.

[@andrewkaye2108]

Good for Kim Ami, for not wanting to committ fraud and escaping that mess

[@andrewkaye2108]

I love Cooper..she did not trust ANYONE above her!! Thats a good edict to follow in big business. :)

[@ALCO-C855-fan]

Darkness, who would you personally say is worse? ENRON ir Worldcom?

[@HistoryintheDark]

Worldcom had more money involved, but Enron had been corrupt for longer so... Pick your poison.

[@ALCO-C855-fan]

@@HistoryintheDark I think they're equally terrible. Both in a different thing. If Worldcom is the BALDWIN RP 210, ENRON is the British Rail class 21. That's how bad they are.

[@dcooper1535]

Deregulation of utilities really led to a mess there.

[@ALCO-C855-fan]

@@dcooper1535 And the upper hands becoming scammers.

[@ALCO-C855-fan]

@@HistoryintheDark Good word. They're both poison. The Baldwin RP 210 and Beitish Rail class 21 of the stock market.

[@jacktanguay8061]

Bro get that tattooist’s license revoked😭😭😭

[@alhasanbeitelmal6218]

Impressive

[@Zindo.Majesty.HisMajesty]

Ahhh long distance phone calls.. I’m old

[@ntag411]

This was entertaining. Not really proper to be gladdened by others wrong doing, but I can't help it. 😁

[@dannypowers4995]

I had a good friend lose tens of thousands of dollars in stck price due to the cooking of the books. 😢

[@uncaringgenius]

The old Worldcom building is still standing in Jackson today though far as i know no one owns it.

[@Katchi_]

All property is owned. Your state owns it. I don't even live there and know more than you.

[@RoseanneSeason7]

@@Katchi_ what do you want a medal?

[@Hi-xd5ox]

This is the future for a company that rhymes with “Besla”

[@MayorSom]

Buuu….but our Felon overlord is fighting tyrannical gov and bastion of freedom of speech. I mean he did use the NASA tender capital to bailout Tesla Solar 😂😂

[@Katchi_]

It is going to be very very messy when it occurs.

[@TSquared2001]

This was good history

[@ojkalala]

Good information, but IMO, he adds a bit too much opinion.

[@emfs9522]

The auditors got themselves fired haha.

[@MobileGamingLegendz]

Are you Vauce 2 ?

[@41moose]

You and chips…

[@robertholtz]

To say that MCI WORLDCOM was not as well known as ENRON is totally preposterous.

[@tonycrabtree3416]

It’s not because of numbness to Enron happening before and being very high profile involving both Enron and Arthur Anderson.

[@dudusblack]

nimeskia Kim Wamae..i.o.nm UUCI Kenya

[@tishpowers2496]

Hilarious 😂

[@believein1]

They stole money like any black criminal. Billions of it. Yet they get a year in prison. 😂

[@billybones6463]

"Prepaid status"...what a great nebulous term. I dont undertand the real why though, why did these guys Meyers and Sullivan feel the need to artificially bolster the stock price? Where and why did the pressure come onto them and not others?