Wednesday, March 16, 2005

Former Qwest CEO and Other Executives Sued by SEC for Fraud

Former Qwest CEO Joseph Nacchio, two former CFOs, and five other former senior executives at the Baby Bell were sued by the SEC for fraudulent accounting at the company; two executives settled their cases.  The SEC Litigation Release (here) states that under the direction of the defendants "Qwest fraudulently recognized over $3 billion of revenue and excluded $71.3 million in expenses."  The Commission and Qwest settled the case in Oct. 2004, with the company paying a civil penalty of $250 million. The Commission is seeking disgorgement and director & officer bars against the remaining defendants. (ph)

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Civil Enforcement, Fraud | Permalink

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