28 Jan

Cynthia Cooper’s book – Extraordinary Circumstances: The Journey of a Corporate Whistleblower

cooper.jpgCynthia Cooper, WorldCom whistleblower, is releasing her book in just few days. Extraordinary Circumstances: The Journey of a Corporate Whistleblower is her story. If it is anything like the speech I heard her give a few years ago at the Association of Certified Fraud Examiners Fraud Conference, it will be fantastic.

Unlike other so-called whistleblowers of the Enron, WorldCom, and Tyco era… Cynthia is the true hero. She stood up for what she knew was right and she suffered for it. Make no mistake that she was in danger as she and her team attempted to get to the bottom of accounting shenanigans at WorldCom.

Publishers Weekly writes:

In Cooper’s thorough and efficient narrative about the fantastic collapse of telecommunications giant WorldCom there are two distinct themes: her insider’s view of the corporation’s widespread wrongdoing and the life experiences that led Cooper to becoming a courageous whistleblower. Cooper, former vice president of WorldCom’s internal audit department, is most successful with the former. She brings us into the boardrooms, the backrooms and, somehow, into the heads of key players as some struggled with and others embraced the deceptions that would bring WorldCom down.

I’ll be reviewing the book in the next couple of weeks and can’t wait to share my thoughts.

14 Sep

Tyco Owes IRS $50 Million in Back Taxes

Tyco International Ltd. still owes the Internal Revenue Service $50 million in income taxes related to capital gains that were not reported in its 1999 federal tax return.

The company’s former vice president of taxation, Raymond Scott Stevenson has been charged with filing a false corporate tax return, which underreported capital gains by $170 million. The IRS says that the income tax on the capital gains would add $50 million to Tyco’s 1999 tax bill.

According to the U.S. Attorney’s Office in Southern Florida, Raymond Stevenson was the vice president of taxation for Tyco until 2003. In 1999, he initiated a series of transactions which reduced the company’s state tax liability. However, the same transactions created $170 million in federal capital gains, but Stevenson failed to report that amount on Tyco’s federal return.

Stevenson has pleaded not guilty to the charge of tax fraud.