WorldCom uncovers further €2 billion in fraudulent accounting

WorldCom Inc has uncovered a further €2 billion in fraudulent accounting in financial reports filed for 1999 and 2000, CNBC reported, citing people close to the matter.

The new discovery brings the total of funds which were inappropriately accounted for to almost €6 billion.

The television station said that former chief financial officer Scott Sullivan used a different technique to hide most of this sum than that used to disguise the €3.8 billion already uncovered.

In addition to incorrectly booking operating expenses as capital expenditures, the CFO reversed some of the company's bad debt reserves and stated them as operating income.

Sullivan was arrested last week for his role in the alleged fraud, which led WorldCom to file for bankruptcy on July 21.

The company was not immediately available for comment.

CNBC said it is likely to issue a statement on the matter later today.