SEC Charges Former Qwest CEO Joseph Nacchio and Eight Others with Massive Financial Disclosure Fraud
FOR IMMEDIATE RELEASE
2005-36
Washington, D.C., March 15, 2005 - The Securities and Exchange Commission today charged Joseph P. Nacchio, former co-chairman and chief executive officer of Qwest Communications International Inc., and eight other former Qwest officers and employees with fraud and other violations of the federal securities laws. In three separate but related civil actions, the Commission alleges that, between 1999 and 2002, the Qwest defendants engaged in a multi-faceted fraudulent scheme designed to mislead the investing public about the company's revenue and growth.
According to the SEC's complaints filed in the United States District Court for the District of Colorado, Nacchio and others made numerous false and misleading statements about Qwest's financial condition in annual, quarterly, and current reports, in registration statements that incorporated Qwest's financial statements, and in other public statements, including earnings releases and investor calls,. As a result of that scheme, Qwest fraudulently recognized over $3 billion of revenue and excluded $71.3 million in expenses. The Commission, in October 2004, sued Qwest in a settled injunctive action in which the company agreed to pay a $250 million penalty for its misconduct.
In addition to Nacchio, the Commission's complaints name former chief financial officers Robert S. Woodruff and Robin R. Szeliga, former chief operating officer Afshin Mohebbi, former executive vice president of wholesale markets Gregory M. Casey, former senior vice president of pricing and offer management Roger B. Hoaglund, former senior vice president of finance William L. Eveleth, former director of financial reporting James J. Kozlowski, and former senior manager of financial reporting Frank T. Noyes. The complaints seek injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against all of the defendants, and officer/director bars against Nacchio, Woodruff, Szeliga, Mohebbi, Casey, and Eveleth.
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http://www.sec.gov/news/press/2005-36.htmJanuary 07, 2002
Qwest Communications Chairman And CEO Joseph P. Nacchio Named Chairman Of FCC Advisory Group
WASHINGTON, D.C., January 7, 2002 -- Qwest Communications International Inc. (NYSE: Q) Chairman and CEO Joseph P. Nacchio has been named to head the Federal Communications Commission's (FCC) Network Reliability and Interoperability Council (NRIC). The appointment was announced by FCC Chairman Michael K. Powell.
In addition to his role as chairman of the NRIC, Nacchio is vice chairman of the National Security Telecommunications Advisory Committee (NSTAC), a select group of industry executives that provides advice on security and emergency preparedness issues to President George W. Bush. Nacchio is scheduled to become chairman of NSTAC later this year. The leadership roles for the government will not distract Nacchio from running Qwest.
Of his new leadership role at NRIC, Nacchio said: "The council’s work at this crucial time is particularly important to the safety and well being of our nation as we study and recommend to the FCC ways to make our Internet, data and voice networks more secure, and more reliable, than ever before. We must ensure that essential security needs of our federal, state and local governments are met while continuing the high quality of service the public requires. I look forward to working with Chairman Powell and the members of the Council to achieve these goals."
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