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Qwest Executives Plead Not Guilty To Fraud Charges
POSTED: 12:09 p.m. MST March 5, 2003
UPDATED: 12:33 p.m. MST March 5, 2003
DENVER -- Three Qwest executives named in a federal
fraud indictment pleaded not guilty to all charges Wednesday in federal
court.
John Walker, Thomas Hall and Bryan Treadway entered their pleas
Wednesday morning in a Denver courtroom. Grant Graham pleaded not guilty to similar charges last week.
The four are named in a 12-count indictment charging them with trying to create more than $33 million in revenues by wrongly reporting a purchase order with the Arizona School Facilities Board.
Four of the counts carry a penalty of 10 years in prison and a
$1 million fine. The other counts are punishable by
five years in prison and a $250,000 fine.
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.
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:
John Walker, Thomas Hall and Bryan Treadway entered their pleas
Wednesday morning in a Denver courtroom. Grant Graham pleaded not guilty to similar charges last week.
The four are named in a 12-count indictment charging them with trying to create more than $33 million in revenues by wrongly reporting a purchase order with the Arizona School Facilities Board.
Four of the counts carry a penalty of 10 years in prison and a
$1 million fine. The other counts are punishable by
five years in prison and a $250,000 fine.
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.
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 28, 2003: Fourth Qwest Executive Turns Himself In
- 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.
