WASHINGTON -- The scandal surrounding WorldCom widened late Thursday as the beleaguered U.S. telecom giant admitted discovering an additional $3.3 billion in improperly reported earnings.

The announcement brought to $7.1 billion the total earnings misreported by the once high-flying Clinton, Mississippi-based telecommunications company, which is currently seeking bankruptcy protection.

"The amounts disclosed today have previously been disclosed to the SEC and other investigative authorities," the company said in a statement, referring to the Securities and Exchange Commission.

It added that as a result of the discovery, it intended to reissue its financial statements for 2000.

WorldCom shook financial markets in June when it admitted to $3.8-billion accounting "irregularities" by presenting its current expenses as capital outlays and thus boosting the balance sheet of the company, which owns MCI, the second-largest U.S. telephone company.

A proper accounting of those funds would have resulted in a reduced cash flow of $6.3 billion in 2001 and $1.4 billion for the first quarter of 2002, meaning the company would have reported a net loss in 2001, and for the first quarter of 2002.

Instead, WorldCom claimed $1.4 billion in profit in 2001, and $130 million in profit for the first quarter of 2002, AFP reported.

WorldCom, which launched an internal investigation following the accounting scandal, warned Thursday that the discovered $3.3 billion might not be the last of damaging revelation about its financial books.

"Investors and creditors should be aware that additional amounts of improperly reported ... income may be discovered and announced," the company warned.

The fast evolving scandal around WorldCom took a dramatic turn last Thursday, when the company's two former top executives, Scott Sullivan and David Myers, who used to handle WorldCom finances, were publicly led away in handcuffs after surrendering to FBI agents.

A federal complaint accused both men "and others known and unknown" of fraud in connection with the sale and purchase of WorldCom stock, making false statements to auditors and falsifying the company's books and records.

Sullivan and Myers could face up to 15 years in jail if convicted.