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US: Timeline of Qwest Woes

The Associated Press
December 28th, 2005

Chronology of accounting practices and federal investigations of Qwest Communications International Inc.:


--June 20: Morgan Stanley downgrades Qwest stock after analyst questions accounting practices. Qwest Chairman and Chief Executive Officer Joseph Nacchio later disputes the claim.


--Feb. 11: Qwest cooperates with government subpoena concerning its swap of fiber-optic network capacity with Global Crossing Ltd.

--April 4: Qwest says SEC has begun formal inquiry into its accounting practices.

--June 16: Nacchio resigns as chairman and CEO.

--July 10: Justice Department confirms criminal investigation of Qwest.

--July 29: Qwest says it will restate 2000 and 2001 earnings.

--Aug. 20: Qwest avoids bankruptcy with sale of its yellow pages business for more than $7 billion.

--Sept. 22: Qwest reverses $950 million in revenue from fiber-optic capacity swaps.

--Oct. 29: Qwest says it will restate $531 million in improperly recognized revenue and take nearly $11 billion in charges for reduced value of telephone and fiber-optic networks.

--Nov. 15: Qwest says it will erase $358 million in earnings for 2000 and 2001.


--Feb. 11: Qwest lowers 2000 and 2001 revenue by $2.2 billion, and later reports a $35.9 billion loss for 2002.

--Feb. 25: Four former Qwest executives indicted on conspiracy and securities fraud charges.

--Aug. 28: Chief Financial Officer Robin Szeliga leaves the company.

--Oct. 16: Qwest files restated earnings for 2000 and 2001; total revenue erased is $2.54 billion.


--Feb. 23: Trial begins of former executives Grant Graham, Thomas Hall, John Walker and Bryan Treadway on securities fraud, wire fraud and other charges tied to a Qwest contract to provide Internet services to Arizona schools.

--April 16: Walker and Treadway cleared on all charges. Jury acquits Graham on three charges, deadlocks on remaining eight. Deadlocks on all 11 charges against Hall.

--May 28: Graham pleads guilty to felony accessory after the fact to wire fraud and agrees to help prosecutors.

--Sept. 17: Hall agrees to plead guilty to single misdemeanor count of falsifying documents.


--Feb. 18: Marc Weisberg, a former senior vice president, indicted on wire fraud and money laundering charges.

--March 15: SEC charges Nacchio, Szeliga, former CFO Robert Woodruff and four other former executives with orchestrating a massive financial fraud between 1999 and 2002.

--June 2: Justice Department charges Szeliga with insider trading. She reaches a plea agreement and will cooperate with prosecutors.

--June 3: Szeliga reaches agreement to settle civil fraud charges filed by the SEC. Terms were not disclosed.

--July 14: Szeliga pleads guilty to a single count of insider trading and agrees to cooperate with prosecutors and the SEC.

--July 27: A magistrate delays the evidence exchange process in the SEC's civil case against former Qwest executives to give the government more time for its criminal investigation.

--Sept. 7: A federal judge approves a $2.1 million civil settlement for former Qwest executive Gregory Casey who was charged with participating in a conspiracy. He did not admit wrongdoing and agreed to cooperate with federal investigators. He was the first defendant to reach a final settlement in the SEC case.

--Nov. 1: Qwest announces a tentative $400 million settlement of shareholder lawsuits stemming from the accounting scandal. It would resolve claims against the company, some former executives and its board of directors -- but not Nacchio and Woodruff.

--Dec. 20: Federal grand jury indicts Nacchio on 42 counts of insider trading. He pleads not guilty.

--Dec. 28: Weisberg pleads guilty to single count of wire fraud, agrees to cooperate with prosecutors.

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