As one of the world most serious financial fraud the scandal of World Com shocked the entire world by what they have done, which came up to the top 1 case in Wall Street Scandals at a glance, BBC NEWS.

In June 2002, the internal audit of World Com found out a 3.8 million financial fraud in accounting. Latter, according to the data from SEC the inflation of the assets of the whole company are estimated 11 billions. The past CEO Bernard Ebbers was accused, and sentenced to be imprisoned for a 25 years period.

The main ethical issue is that in this huge financial fraud the World Com had cheated all the people who had business connection to World Com, the shareholders, retail investors, company partners, and even the banks, in order to sustain the company and even making some personal profits, which violates the concept both in moral ethic and business ethic. This also directly led to the bankrupt of World Com.

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