Onvoy Had Fired Accuser, Firm Says

Onvoy Inc., a telephone network operator accused of helping WorldCom Inc. avoid paying fees to competitors, said the former employee who made the allegations had been fired for poor performance.

James Krutchen, whose charges have led to inquiries by the Justice Department and the Federal Communications Commission, was let go in a round of firings in January after four years with Onvoy, spokeswoman Kathryn Lovik said.

“There was one job and we had two people,” she said. “Because of his unsatisfactory performance, he was not considered for the post.” He also sought to become an Onvoy competitor while on its payroll, Lovik said.

Krutchen’s allegations that Onvoy helped WorldCom illegally route calls to avoid paying connection fees to other carriers have disrupted WorldCom’s plans to emerge from bankruptcy protection.

Minneapolis-based Onvoy, backed by billionaire George Soros, remains financially stable, Chief Executive Janice Aune said Saturday. She also said that Onvoy is investigating Krutchen’s allegations.

Krutchen, whose identity was first reported in the New York Times and who once worked for WorldCom, didn’t return calls for comment. His lawyer, Joseph Friedberg, denied that his client was a poor performer who intended to compete with Onvoy.