The Association of U S West Retirees



SEC: Fraud case against former Qwest execs should proceed.
Denver Post
Thursday, June12, 2008

The Securities and Exchange Commission said five former Qwest executives have failed to prove why the SEC's fraud complaint against them should be dismissed.

The SEC lawsuit alleges that actions of the former executives, including former chief executive Joe Nacchio, caused Denver-based Qwest to improperly report revenue.

The defendants have said classified information on Qwest's government contracts would help their defense but that the government is invoking state-secrets privileges that prevent them from using the information.

The SEC in a response filed Wednesday in U.S. District Court in Denver said the defendants haven't shown that the protected information is relevant or would help their defense.