refile two civil claims against Nacchio
By Associated Press
Rocky Mountain News
Friday, March 31, 2006
A federal judge on Thursday dismissed two claims the
Securities and Exchange Commission made in its civil fraud
lawsuit against former Qwest Communications CEO Joseph
Nacchio but gave the agency two weeks to refile with more
specific language. A claim alleging falsification of
accounting records and a second claim alleging Nacchio aided
and abetted Qwest's failure to keep accurate records were
not adequately argued, U.S. District Judge Marcia Krieger
The SEC alleged that Nacchio failed to publicly disclose
that Qwest had false and misleading records regarding
non-recurring revenue, but its allegations were not enough
to argue that Nacchio caused the records to be falsified or
aided and abetted in Qwest's keeping of false records,
Krieger wrote in her ruling.
Nacchio's lawyers and a spokesman for federal prosecutors
did not immediately return phone messages left Thursday
Nacchio was one of several former top-level Qwest
Communications International Inc. executives accused of
orchestrating a financial fraud between April 1999 and March
2002 that allowed Qwest to improperly report about $3
billion in revenue that was later restated.
Krieger refused to dismiss five other claims against Nacchio
and SEC claims against other former Qwest executives.
Nacchio also has been charged criminally with 42 counts of
insider trading. He has pleaded innocent.