AUSWR
The Association of U S West Retirees
 

 

 

3 ex-Qwest execs press for dismissal of SEC charges
By The Denver Post
Friday, January 27, 2006


Former Qwest executives Joe Nacchio, Afshin Mohebbi and Robert Woodruff vowed Thursday in court filings to continue seeking dismissal of fraud charges leveled against them last year by the Securities and Exchange Commission.  In response to an order from a magistrate judge, the men filed briefs indicating they still want the charges dismissed.

"The motion (to dismiss) raises fundamental questions as to whether the SEC -- which investigated the matter for several years before filing its complaint -- will be able to state a claim against Mr. Nacchio under any legal theory," attorney Herbert Stern said in his filing for Nacchio, Qwest's former chief executive.

In a related case, Nacchio was charged last month with 42 criminal charges of insider trading.  He has pleaded not guilty.

The SEC sued Nacchio, former company president Mohebbi, former chief financial officer Woodruff and nine other former Qwest officials last March, claiming they conducted an illegal scheme to inflate revenues by $3 billion from 1999 to 2002 and misled investors regarding Qwest's financial state.

Several have settled their cases. Last week, an attorney for former chief financial officer Robin Szeliga, who had reached a preliminary settlement, said she no longer has a deal with the SEC.

http://www.denverpost.com/business/ci_3441428