The Securities and Exchange Commission filed additional fraud charges against WorldCom yesterday, after it learn from the company of additional accounting problems. The S.E.C. said WorldCom, which is now operating under bankruptcy protection, inflated earnings by almost $2 billion more then it had previously disclosed. The new disclosure brings the total amount to more than $9 billion.

In the amended complaint, the S.E.C. also added new fraud charges, which relate directly to the company having misled investors by reporting inflated profits as a result of accounting manipulations.

The new complaint accuses the company of retaining secret reserves that could be used to offset expenses, and thus improperly increase profits.

(via New York Times)