Qwest Nearing $250M Settlement with SEC

Qwest Communications International and federal regulators have reportedly agreed to a $250 million settlement of a two-year investigation into the alleged financial misdeeds of former Qwest executives.

The agreement has not been finalized, and neither the Securities and Exchange Commission nor Qwest would comment on the matter, according to the Business-Standard, an Indian business daily.

Union leaders at the Communications Workers of America told the newspaper that Qwest informed them about the pending agreement. People familiar with the case said Qwest would most likely agree to pay the $250 million without admitting or denying guilt.

The SEC investigation began two years ago after allegations surfaced that Qwest's former management overstated revenue by improperly booking network capacity deals. The telecommunications company restated its financial results for 2000 and 2001 about a year ago, reducing revenues by $2.5 billion.

To date, about a dozen former Qwest executives either have settled allegations or have been targeted in civil or criminal cases.

The settlement must be approved by the five-member SEC, which could announce the deal this month.

The Associated Press quoted analysts as saying an SEC settlement could help clear the way for the sale of the company, which operates in 14 Western and Midwestern states. They believe Qwest's relatively small size and lack of a wireless division might make it an attractive acquisition because of its regional customer base.

You may like these other stories...

Scott London, a former senior audit partner at KPMG LLP, was sentenced to 14 months in federal prison on Thursday for providing inside information about several of his firm’s clients to a friend, who used it to make at...
By Teresa Ambord, Correspondent You'd think a man who masterminded the biggest Ponzi scheme in history would have ice water in his veins. The name Bernard Madoff has become synonymous with investment scams after his...
By Ken Berry In a new case decided by the US Supreme Court, the remnants of a tax shelter partially constructed by wily Texas billionaire Billy Joe McCombs - known informally as "Red" - collapsed like a house...

Upcoming CPE Webinars

Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.