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Ex-Qwest accountant seeks dismissal of SEC case
The Associated Press
Denver Post
Saturday, December 1, 2007

DENVER—Attorneys for a former Qwest Communications accountant said Friday that it is unfair for federal regulators to accuse him of fraud, and then have federal prosecutors try to prevent him from collecting evidence for his defense. 

The Securities and Exchange Commission has accused James Kozlowski and former Qwest Communications International Inc. executives of financial fraud from April 1999 to March 2002 that nearly forced the Denver-based telecommunications company into bankruptcy.

The SEC alleges they worked to artificially boost sales figures to meet financial targets.

Kozlowski's attorneys have indicated they wanted to question former Qwest CEO Joe Nacchio about potential government contracts he thought Qwest could win.  However, the government has said some information that Kozlowski is seeking falls under the state secrets doctrine and should remain confidential, his attorneys said in documents filed Friday in U.S. District Court.

Kozlowski's attorneys argue it is improper for the government to prosecute someone, then invoke governmental privilege to prevent him from gaining material for his defense.  If Kozlowski is denied access to the information, the case should be dismissed, his attorneys argued.