WorldCom's former chief executive officer was aware of accounting irregularities, company attorneys have told a US congressional hearing.
Mr Bernard Ebbers was aware hundreds of millions of dollars were hidden as part of nearly $4 billion in irregularities, they claimed.
He invoked the constitutional right against self-incrimination at a congressional hearing on Monday and refused to answer questions.
Mr Ebbers' attorney told investigators with the House Energy and Commerce he was unaware of the transactions in question.
But WorldCom's lawyers said Mr Scott Sullivan, the firm's former chief financial officer, claims Mr Ebbers knew about the transactions.
Committee spokesman Mr Ken Johnson said WorldCom's lawyers said "Bernie (Ebbers) was aware that hundreds of millions of dollars had been moved".
"This is the first evidence that we've seen that the muddy little footprints may lead back to Bernie Ebbers' doorstep," MR Johnson said.
"Clearly there's evidence that some people at WorldCom knew someone was cooking the books."
Mr Ebbers, in an interview with attorneys conducting an internal investigation for WorldCom, denied Mr Sullivan's assertion that he was aware of the transactions.
AP