MCI Responds to Fraud Allegations

Following a meeting with the U.S. Attorneys Office, Michael D. Capellas, MCI's chairman and CEO issued a public statement vowing to cooperate with the new investigation into how the company has handled access fees. Capellas also said MCI is conducting its own internal analysis of the charges.


Various press reports on Monday alleged that MCI's "laundering" of call origination and termination data may have helped the company avoid up to $1 billion in local access charges. Competitors, including AT&T, were quoted as saying MCI's scheme included the routing of calls from U.S. government agencies through Canada to avoid local charges. The allegations, if true, could threaten MCI's lucrative contracts with the U.S. government and its chances of emerging from bankruptcy proceedings.
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