DENVER -- Seven former executives of Denver-based Qwest Communications have been named in a lawsuit filed by the Securities and Exchange Commission -- accusing former chief executive Joe Nacchio and the others of engaging in a "massive financial fraud."

Authorities say the alleged fraud hid the true source of the company's revenue and earnings growth from the investing public, and led Qwest to fraudulently report some $3 billion worth of revenue from its June 2000 merger with U.S. West.

The suit claims Nacchio and former financial officers Robert Woodruff and Robin Szeliga "caused, directed and implemented the fraudulent scheme."

The SEC alleges the three set aggressive and rigid targets for Qwest's revenue and earnings growth, which they constantly touted to the investing public and Wall Street -- but which also triggered the fraud.

Charles Stillman, Nacchio's attorney, said Nacchio had cooperated extensively with the SEC throughout its investigation but that the :SEC has ignored his good faith reliance on Qwest's extensive governance and disclosure process, which involved significant participation and advice of many other responsible people."

"The SEC unfairly seeks to impute to Mr. Nacchio and others at Qwest responsibility for the results of a widespread industry downturn in a deteriorating economy," Stillman said. "As Mr. Nacchio has consistently stated, he did nothing wrong and did not instruct anyone else to do anything wrong during his tenure at Qwest, and he looks forward to being vindicated."

Qwest stock had traded as high as $64 a share in 2000. On Tuesday, shares are down 6 cents at $3.85 in mid-afternoon trading on the New York Stock Exchange.