WorldCom Suspends Three in Commission Scandal

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February 15, 2002 — (WEB HOST INDUSTRY REVIEW) — WorldCom employees at three offices allegedly
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booked up to $4 million in fake commissions by taking credit for sales at
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different offices, according to a Wall Street Journal report.
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The voice and data provider suspended three employees and froze at least 12
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workers’ commissions as part of its investigation, the WSJ reported.
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WorldCom says it expects no impact on earnings because of the incident.
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Two WorldCom managers allegedly inappropriately boosted the commissions of
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their sales teams, while one representative deliberately boosted her own
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commission. Team commissions are used to calculate managers’ salary, the
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newspaper said, citing WorldCom general counsel Michael Salsbury.
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The three currently suspended employees will either be fired or asked to
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resign. They include two of WorldCom’s highest-ranked salespeople.

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