Qwest Jury Announces Partial Verdict
Not Guilty Verdicts, Deadlock Announced
POSTED: 2:47 pm MDT April 16,
2004
UPDATED: 6:09 pm MDT April 16,
2004
DENVER -- The federal jury deciding the fate of four former Qwest Communications executives charged with improperly booking nearly $34 million found three of the men not guilty and deadlocked on other charges.Earlier this week, the jury told Blackburn they had reached unanimous verdicts on 24 of the 44 charges in the case. On Friday, however, a note said simply: "We cannot reach a unanimous decision on all counts."The judge did not declare a mistrial and the jury delivered its partial verdict Friday afternoon.
Thomas Hall, Grant Graham, John Walker and Bryan Treadway are accused of improperly booking the money as part of a $100 million deal in 2001 to link Arizona schools to the Internet. Government prosecutors say the four conspired to declare the revenue before the purchases were made and then lied to accountants and investigators about it.Walker and Treadway were found not guilty of all charges. Graham was found not guilty of three charges and the jury deadlocked on eight other counts against him. The jury also deadlocked on all charges against Hall."While the U.S. Attorney's Office is obviously disappointed with the result of the jury's deliberations, we are respectful of the efforts the jury put forth," U.S. Attorney John Suthers said in a written statement. "Historically, accounting fraud cases are difficult to
prosecute."During the trial, defense attorneys contended the executives were not fully informed or did not fully understand the accounting principles in the deal.The jury began deliberations April 5. Jurors have asked various questions during deliberations. On Monday, the judge denied their request for transcripts of testimony from Hall and a prosecution witness, saying it would provide undue emphasis on their statements.It is the first criminal trial stemming from investigations that prompted former Qwest chief executive Joseph Nacchio to quit in 2002 and ultimately led the Denver-based telecommunications giant to remove $2.5 billion in revenue from its books.Qwest provides telephone services in 14 states in the West and Midwest.
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Thomas Hall, Grant Graham, John Walker and Bryan Treadway are accused of improperly booking the money as part of a $100 million deal in 2001 to link Arizona schools to the Internet. Government prosecutors say the four conspired to declare the revenue before the purchases were made and then lied to accountants and investigators about it.Walker and Treadway were found not guilty of all charges. Graham was found not guilty of three charges and the jury deadlocked on eight other counts against him. The jury also deadlocked on all charges against Hall."While the U.S. Attorney's Office is obviously disappointed with the result of the jury's deliberations, we are respectful of the efforts the jury put forth," U.S. Attorney John Suthers said in a written statement. "Historically, accounting fraud cases are difficult to
prosecute."During the trial, defense attorneys contended the executives were not fully informed or did not fully understand the accounting principles in the deal.The jury began deliberations April 5. Jurors have asked various questions during deliberations. On Monday, the judge denied their request for transcripts of testimony from Hall and a prosecution witness, saying it would provide undue emphasis on their statements.It is the first criminal trial stemming from investigations that prompted former Qwest chief executive Joseph Nacchio to quit in 2002 and ultimately led the Denver-based telecommunications giant to remove $2.5 billion in revenue from its books.Qwest provides telephone services in 14 states in the West and Midwest.
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