may be adjusted for ex-Qwest executive
By Sandy Shore
DENVER (AP) - A former Qwest executive facing a year of
probation in a $34 million fraud scheme may have his
sentence converted to time already served, attorneys said
Grant Graham pleaded guilty nearly two years ago to an
accessory count, but his sentence has not been imposed. His
plea agreement requires him to cooperate with prosecutors in
their insider trading case against former Qwest Chief
Executive Joseph Naccio, who has not yet gone to trial.
During a hearing in federal court Monday, U.S. Attorney Bill
Leone and Graham's attorney said they have discussed
changing Graham's probation sentence to the time he has
served since his plea.
Leone told U.S. District Judge Robert Blackburn he hoped
Graham's sentence could be finalized by year end, and
Blackburn asked for a status report to be submitted by late
Graham was one of four midlevel Qwest Communications
International Inc. managers accused of improperly booking
nearly $34 million in revenue during a 2001 deal to link
Arizona schools to the Internet.
He pleaded guilty to one count of accessory after the fact
to wire fraud in May 2004. Prosecutors dropped eight other
charges against him and agreed not to seek restitution.
The agreement was reached after a jury acquitted Graham of
three wire fraud charges and deadlocked on three counts of
wire fraud, three counts of securities fraud, one count of
conspiracy and one count of making a false statement.
Two other former executives, Bryan Treadway and John Walker,
were acquitted of all 11 charges, and Thomas Hall pleaded
guilty to a single misdemeanor count of falsifying documents
and served a year on probation.
Nacchio has pleaded not guilty to 42 counts of insider
trading. A June status hearing is set in district court.
Government officials have said Denver-based Qwest, a phone
service provider in 14 mostly Western states, booked revenue
from one-time sales of equipment and fiber-optic swaps while
falsely claiming to investors that the income was
recurring. Qwest later restated earnings from 2000 and 2001
to erase about $2.2 billion in revenue.
On the Net: http://www.qwest.com