DENVER, Colo,, March 15 (Reuters) - The U.S. Securities and Exchange Commission on Tuesday sued former Qwest Communications International Inc. (Q.N: Quote, Profile, Research) Chief Executive Joseph Nacchio and six other former executives, accusing them of perpetrating a massive financial fraud on investors.
The lawsuit, filed in Denver federal court, alleged that the Qwest management team filed false financial statements that hid the true source of the company's revenues between April 1999 and March 2002.
The alleged scheme caused the Denver-based phone company to fraudulently report about $3 billion of revenue and also facilitated the company's June 2000 merger with US West Inc., the lawsuit said.
Also named were former chief financial officers Robert Woodruff and Robin Szilega; former chief operating officer Afshin Mohebbi; former finance executives James Kozlowski and Frank Noyes; and Gregory Casey, former executive vice president of Qwest's wholesale business.
The lawsuit accuses Nacchio and the company's two former
CFOs of directing and implementing the scheme, which it said involved filing
false financial statements and deceiving auditors.
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