SEC, U.S. Judge Said to Be Probing WorldCom
From Reuters
The Securities and Exchange Commission and a federal judge have launched “parallel” probes of WorldCom Inc.’s use of a tax shelter, according to sources familiar with the matter, who said this could strengthen states’ back-tax claims.
More than a dozen U.S. states have sued WorldCom, now called MCI Inc., alleging that the telecommunications company used the shelter to dodge taxes. The states’ claims could add up to $2.75 billion.
U.S. Bankruptcy Court Judge Arthur Gonzalez in New York has now committed himself to reviewing the same 35 boxes of documents from WorldCom and KPMG as the SEC, said the sources, who declined to be named.
