Ep 12. Inside the WorldCom Scam

Inside the WorldCom Scam is the twelfth episode of the second season of the popular true-crime TV show American Greed. The episode tells the story of the massive financial scandal at WorldCom, one of the largest telecommunications companies in the world. The episode delves into the accounting fraud that was uncovered at WorldCom, which involved the systematic inflation of earnings and revenues over a period of several years.

The episode features interviews with key players in the scandal, including former WorldCom CFO Scott Sullivan and whistleblower Cynthia Cooper. It also includes footage from congressional hearings and press conferences, as well as news clips and archival footage from the time.

The episode begins by setting the stage for the WorldCom scandal, explaining the company's rise to prominence and its aggressive acquisition strategy in the late 1990s and early 2000s. The episode then highlights the pressure that CEO Bernie Ebbers was under to maintain WorldCom's stock price, which had been inflated by earlier acquisitions and was vulnerable to economic downturns.

The episode then delves into the accounting fraud itself, describing how Sullivan was able to manipulate WorldCom's books to create the illusion of growth and profitability. It explains how Sullivan used a technique called "cookie jar accounting" to set aside funds that could later be used to artificially inflate earnings. It also discusses how WorldCom used questionable accounting methods to account for expenses as investments, further inflating the company's reported earnings.

The episode then turns to Cooper's role in uncovering the fraud. It explains how Cooper, an internal auditor at WorldCom, began to notice irregularities in the company's accounting and brought her concerns to Sullivan and other executives. When her concerns were brushed aside, she took her findings to the company's board of directors and eventually to the Securities and Exchange Commission (SEC). Her whistleblowing ultimately led to the discovery of the accounting fraud and the downfall of WorldCom.

The episode then explores the aftermath of the scandal, including the legal battles that ensued and the impact the scandal had on the telecommunications industry. It also discusses the lessons that can be learned from the WorldCom scandal, and the importance of whistleblowers in uncovering financial fraud.

Overall, Inside the WorldCom Scam is a gripping and informative episode of American Greed that offers a detailed look at one of the biggest financial scandals in modern history. Through interviews, footage, and expert analysis, the episode tells a compelling story of greed, deception, and the power of accountability.