And the gloves finally come off


It seems Ma Bell has had it with MCI/WorldCom. After watching the upstarts play loose and easy with its business, AT&T today decided to file a civil/criminal suit against the fraud-prone MCI.

In a press release issued this morning, AT&T said: “AT&T today filed a lawsuit in federal district court against MCI/WorldCom and ONVOY, Inc., seeking damages for, among other things, violations of the civil provisions of the federal Racketeering Influenced and Corrupt Organization (RICO) Act and other laws. AT&T’s complaint and a bankruptcy court filing also being made today noted that this lawsuit seeks post-petition damages resulting from MCI/WorldCom’s continuing business operations.”

We know that the Baby Bells and AT&T want MCI to just go away, but they are not leaving anything to chance.

bq. The lawsuit alleges, among other claims, fraud, civil conspiracy, unjust enrichment, racketeering conspiracy and substantive racketeering through a pattern of multiple acts of mail fraud and wire fraud. AT&T recently discovered the existence of those claims as a consequence of a Federal Grand Jury investigation. AT&T also maintains the scheme is ongoing and that MCI and ONVOY continue to engage in the misconduct.

I agree with their reasoning – MCI/WorldCom has coasted too long and has been given the benefit of doubt for too long. When you commit $11 billion in fraud and the scandals from your operations are unending, it is time to call it quits. Sure a lot of jobs will be lost, but in the end a criminal entity shall and should be punished. (For Press Release, click here.)

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