SEC Closes Qwest Fraud Case With Settlement
Putting an end to a civil fraud lawsuit that started in 2005, the Securities and Exchange Commission recently agreed to settlement with Robert Woodruff, the former CFO for Qwest Communications International. Although he neither admitted to nor denied charges that he and other top officials misrepresented Qwest's performance from 1999 to 2002, Woodruff could pay out $2.64 million in disgorgement, fines and interest in the final judgement, The Associated Press reports.
A corporate accountant for Qwest, Frank Noyes, had also been implicated in the case, accused of backdating a contract in order to skew quarterly revenue records, the news outlet says. However, his charges were dismissed in the agreement.
"Woodruff and Noyes were the last remaining defendants in a lawsuit the SEC filed in 2005 accusing former Qwest executives and employees of fraud or insider trading," the AP reports. "Some defendants had claims against them dismissed while others, including former Qwest CEO Joseph Nacchio, reached settlements."
Other SEC lawsuits have come under scrutiny recently, included a charge against Koss Corporation that it had doctored financial statements from 2005 to 2009. The New York Times reports that a Wisconsin federal judge approved the settlement after questioning its adequacy and demanding updates in December.