The Association of U S West Retirees



Former Qwest exec reaches tentative deal in fraud case
By Jeff Smith
Rocky Mountain News
Saturday, January 6, 2007

Former Qwest Chief Financial Officer Robin Szeliga has reached a tentative civil fraud settlement with the Securities and Exchange Commission, according to a court filing Friday.  Szeliga had reached a preliminary settlement in late 2005 as well but pulled out of it.

The one-page court filing didn't disclose any details.  It said only that Szeliga had reached a "settlement in principle" with the SEC's regional office in Denver and that the proposed settlement was subject to review and formal approval by the SEC commissioners in Washington, D.C.

One of Szeliga's Los Angeles attorneys, Mark Drooks, said he couldn't elaborate.

The Denver SEC office already was closed for the weekend.

The SEC sued Szeliga and a half-dozen former Qwest executives, including Joe Nacchio, in March 2005, accusing them of a massive financial fraud.

The SEC at the time sought $1.6 million from Szeliga for "ill-gotten" gains.

In a separate criminal proceeding, Szeliga last year was sentenced to two years of probation and six months of house arrest for one count of insider trading.

She paid a $250,000 fine for a trade that netted her about $125,000.,2777,DRMN_23916_5260282,00.html