Case Study on the Elements of Crime Essay Example | Topics and Well Written Essays - 500 words

Case Study on the Elements of Crime - Essay Example During its 15 existence WorldCom acquired many companies and reached to a commanding position where only a few companies had reached can stand up to the situation. The fast growth in WorldCom was due to the efforts of former WorldCom chief executive officer (CEO) Mr. Bernard Ebbers. Because of his innovative ideas and contributions WorldCom reached to a commanding position. The companies it acquired were UUNET, MCI and CompuServe. WorldCom expanded its business to more than 65 countries very rapidly; due to boom in Internet in 1990's little thought was given to the fundamentals of the company. When Securities and Exchange Commission (SEC) sought an explanation from WorldCom in March 2002, slowly the scandal came to light. When credit rating agencies like Standard & Poor's, Moody's and Fitch downgrade WorldCom rating to a new low the company announced immediate job cuttings around the world. The CEO of the company Ebbers resigned after when SEC revealed that WorldCom had lent about $340 million to him as loans that he used to buy his own shares. The credit rating agency Standard & Poor's downgraded WorldCom credit rating to below investment grade that brought down company's status to a junk status. The result was its removal from S&P index and Nasdaq halted the company's trading of stocks of WorldCom Group and MCI Group.