MCI is entangled in yet another scandal that might seriously affect the carrier's ability to win new business even after it emerges from bankruptcy. The Department of Justice, FCC, House Energy and Commerce Committee, and a mass of lawyers are investigating claims that MCI intentionally and fraudulently rerouted voice calls through Canada to avoid paying sometimes-hefty access fees to other service providers. AT&T, MCI's prime rival, brought the allegations to light early last week when it filed its second objection to MCI's plan of reorganization with the federal bankruptcy court. AT&T's motion details how MCI deliberately set up the Canadian Gateway Project to avoid paying millions of dollars in access fees and to unfairly win new business by offering lower service rates. AT&T is asking the bankruptcy judge to remove current restrictions that prevent it from pursuing a racketeering and fraud suit against MCI after it emerges from bankruptcy.
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