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:

The FBI has set up a tipline for information regarding corporate fraud and abuse. Call the hotline toll-free at (888) 622-0117