SEC asks judge to cut defense's questions
By Jeff Smith
Rocky Mountain News
Friday, December 21, 2007
Federal regulators on Thursday asked a judge to limit the
questions that can be posed by five former Qwest executives in a
civil fraud lawsuit.
Attorneys representing the Securities and Exchange Commission
argued in a U.S. District Court brief that SEC staff discussions
about accounting policy are protected by privilege and shouldn't
be shared with defendants.
Regulators also said the defendants have mischaracterized the
evidence by claiming that outside auditor Arthur Andersen
approved of Qwest's accounting of fiber-optic capacity sales.
The SEC pointed to a deposition that indicated Arthur Andersen
wasn't aware of side agreements Qwest made with customers that
invalidated the accounting.