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Fourth Qwest Executive Turns Himself In
Four Face Charges Of Conspiracy, Securities Fraud, Filing False Reports
POSTED: 11:15 a.m. MST February 28, 2003
UPDATED: 2:55 p.m. MST February 28, 2003
DENVER -- Former Qwest Communications executive Grant Graham has surrendered to federal authorities in Denver.
Graham faces an indictment that charges him with artificially inflating revenues.
He turned himself in to the U.S. Marshal's Service Friday morning, but chose not to make an appearance in federal court. His lawyer entered a plea of not guilty to all charges at his initial appearance.
Graham asked for permission to travel in the Midwest because he works as a consultant and the judge said he could travel in the continental Midwest as long as he notified the court.
He's the last of four former Qwest executives named in the 12-count indictment to surrender.
He was attending a funeral in Georgia on Thursday when the others
surrendered.
Thomas Hall, John Walker and Bryan Treadway were led into a
federal courtroom in handcuffs on Thursday.
They were advised of their rights and released on a $100,000 unsecured bond.
The four former executives are charged with seeking to create more
than $33 million in revenues by wrongly reporting a
purchase order with the Arizona School Facilities Board.
All four have pleaded not guilty to all charges.
Their arraignment is scheduled for next Wednesday.
U.S. Attorney John Suthers said the arrests of the Qwest middle managers may be the first arrests to come from a Justice Department and Securities and Exchange Commission investigation but they may not be the last.
"I think we've made it very clear it's very much an ongoing active investigation. The indictments that took place a couple of days ago are simply the first phase of a multiphase investigation," Suthers said.
If convicted, the defendants could face up to 10 years in prison and fines of $1 million.
Those defendants and four other Qwest executives face civil fraud charges from the SEC.
In the civil suit, the SEC said eight current and former Qwest employees inflated revenues by about $144 million.
The SEC is asking for tough punishment. Besides the usual fines and money penalties, it is asking for the salaries, bonuses, stock and other compensation made during the 1½ years they were allegedly involved in fraudulent activities.
It also asked that four of the eight be prevented from ever again working as an officer or director of a publicly held company.
Additional Info:
Thomas Hall, John Walker and Bryan Treadway were led into a
federal courtroom in handcuffs on Thursday.
They were advised of their rights and released on a $100,000 unsecured bond.
The four former executives are charged with seeking to create more
than $33 million in revenues by wrongly reporting a
purchase order with the Arizona School Facilities Board.
All four have pleaded not guilty to all charges.
Their arraignment is scheduled for next Wednesday.
U.S. Attorney John Suthers said the arrests of the Qwest middle managers may be the first arrests to come from a Justice Department and Securities and Exchange Commission investigation but they may not be the last.
"I think we've made it very clear it's very much an ongoing active investigation. The indictments that took place a couple of days ago are simply the first phase of a multiphase investigation," Suthers said.
If convicted, the defendants could face up to 10 years in prison and fines of $1 million.
Those defendants and four other Qwest executives face civil fraud charges from the SEC.
In the civil suit, the SEC said eight current and former Qwest employees inflated revenues by about $144 million.
The SEC is asking for tough punishment. Besides the usual fines and money penalties, it is asking for the salaries, bonuses, stock and other compensation made during the 1½ years they were allegedly involved in fraudulent activities.
It also asked that four of the eight be prevented from ever again working as an officer or director of a publicly held company.
Additional Info:
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The FBI has set up a tipline for information regarding corporate fraud and abuse. Call the hotline toll-free at (888) 622-0117
Previous Stories:
- February 27, 2003: Former Qwest Executives Surrender To Authorities
- February 25, 2003: Qwest Executives Indicted On Criminal Charges
- February 19, 2003: Qwest Reports $35 Billion Loss In 2002
- October 29, 2002: Qwest To Restate More Revenue
- October 25, 2002: Qwest Fined $20 Million For 'Slamming'
- October 2, 2002: Former Qwest Exec Grilled Over Business Dealings
- October 1, 2002: More Qwest Executives Testify On Capitol Hill
- September 27, 2002: Qwest Founder Under Congressional Scrutiny
- August 23, 2002: Qwest Employees Locked Out Of Buying Company Stock
- August 13, 2002: Qwest To Pay $1 Million Plus In Landmark Settlement
- August 8, 2002: Qwest Posts $1.1 Billion Loss
- July 29, 2002: Qwest To Restate Earnings From 1999 To 2001
- July 10, 2002: Qwest Subject Of Criminal Investigation
- June 17, 2002: Nacchio Out As Qwest CEO
- June 4, 2002: Qwest CEO Criticized At Stockholders' Meeting
- May 23, 2002: Qwest's Rating Downgraded To Junk Status
Copyright 2003 by TheDenverChannel.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
