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

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.