Pacific Views

MCI Worldcom - The Big Ripoff

Apparently the telecommunications giant didn't just stop at bilking investors and customers, they did the unforgivable. They ripped off other telcoms:

U.S. prosecutors are investigating accusations that MCI, the nation's number-two long distance carrier, defrauded other telephone companies of hundreds of millions of dollars or more over nearly a decade, The New York Times reported in Sunday editions.

Citing people involved in the inquiry, the newspaper reported that the central element of the scheme consisted of disguising long distance calls as local ones to avoid paying special access tariffs to local carriers across the country. The tariffs are the top single source of MCI's costs for carrying calls and data transmission, the Times said....

The article goes on to report that some sources say the practice continues apace.