WorldCom had recently been caught up in an accounting scandal, forcing the SEC to take a closer look into many large corporations’ accounting procedures. One of these corporations was Qwest Communications. While looking into Qwest, the SEC determined that Qwest had been improperly following the accounting guidelines and had inflated their revenue by billions.
In 2004, the SEC charged Qwest Communications International Inc. with securities fraud and other violations of the federal securities laws. Qwest agreed to a judgment without confirming of denying guilt. The judgment enjoins Qwest from violating the antifraud, reporting, books and records, internal control, proxy, and securities registration provisions of federal securities laws. The judgment requires Qwest to …show more content…
Joseph Nacchio, former Chairman and CEO, was convicted of 19 counts of insider trading in Qwest stock in 2007. He was also ordered to pay a fine of $19 million and forfeit $52 million from illegal stock sales. Afshine Mohebbi, former President and COO, was later cleared of all charges in 2011. Robin Szeliga, former CFO, pled guilty to one count of insider trading.
Roger Hoaglund agreed to a settlement. He paid a civil penalty of $100,000 and disgorgement of $200,000 plus prejudgment interest.
William Evelth also agreed to a settlement. He paid a civil penalty of $75,000 and disgorgement of $35,575 plus prejudgment interest. He was also prohibited from acting as an officer or director in any public company for five years.
Robert Woodruff, former CFO, was found to be liable for disgorgement of $1,731,048, plus prejudgment interest of $640,427. He also is required to pay a civil penalty of $300,000, and is prohibited him from acting as an officer or director of a public company for a period of five
In 2004, the SEC charged Qwest Communications International Inc. with securities fraud and other violations of the federal securities laws. Qwest agreed to a judgment without confirming of denying guilt. The judgment enjoins Qwest from violating the antifraud, reporting, books and records, internal control, proxy, and securities registration provisions of federal securities laws. The judgment requires Qwest to …show more content…
Joseph Nacchio, former Chairman and CEO, was convicted of 19 counts of insider trading in Qwest stock in 2007. He was also ordered to pay a fine of $19 million and forfeit $52 million from illegal stock sales. Afshine Mohebbi, former President and COO, was later cleared of all charges in 2011. Robin Szeliga, former CFO, pled guilty to one count of insider trading.
Roger Hoaglund agreed to a settlement. He paid a civil penalty of $100,000 and disgorgement of $200,000 plus prejudgment interest.
William Evelth also agreed to a settlement. He paid a civil penalty of $75,000 and disgorgement of $35,575 plus prejudgment interest. He was also prohibited from acting as an officer or director in any public company for five years.
Robert Woodruff, former CFO, was found to be liable for disgorgement of $1,731,048, plus prejudgment interest of $640,427. He also is required to pay a civil penalty of $300,000, and is prohibited him from acting as an officer or director of a public company for a period of five