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WorldCom confirms subpoena on MCI fees
New York, July 29: Worldcom has confirmed federal prosecutors earlier this month subpoenaed documents concerning special fees its MCI unit paid rival telephone companies to carry long-distance calls over their local lines.
New York, July 29: Worldcom has confirmed federal prosecutors earlier this month subpoenaed documents concerning special fees its MCI unit paid rival telephone companies to carry long-distance calls over their local lines.
The bankrupt telephone company declined to confirm whether the subpoena relates to a federal probe into whether it defrauded three local carriers nationwide of possibly more than $1bn in special access tariffs since ’94.
The probe by the US Attorney’s office in Manhattan was disclosed on Sunday by The New York Times. “We did receive a subpoena, but can’t discuss the details,” WorldCom spokesman Brad Burns said.
“The question of the day is whether this (matter) will keep us from emerging from bankruptcy. The answer is that our plan for reorganisation and our emergence from bankruptcy remain on track,” Burns said.
A source close to WorldCom said the subpoena related to allegations it avoided paying the special fees to the three rival companies — AT&T, SBC Communications and Verizon.
Bureau Report
The probe by the US Attorney’s office in Manhattan was disclosed on Sunday by The New York Times. “We did receive a subpoena, but can’t discuss the details,” WorldCom spokesman Brad Burns said.
“The question of the day is whether this (matter) will keep us from emerging from bankruptcy. The answer is that our plan for reorganisation and our emergence from bankruptcy remain on track,” Burns said.
A source close to WorldCom said the subpoena related to allegations it avoided paying the special fees to the three rival companies — AT&T, SBC Communications and Verizon.
Bureau Report