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Ex-Qwest CEO says he'll battle any civil charges

By Dana Cimilluca
Bloomberg News

Joseph Nacchio, former Qwest chief executive

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The SEC's enforcement staff sent Nacchio a Wells notice, indicating it plans to recommend the commission sue him, The Wall Street Journal reported yesterday, citing unnamed sources.

"If required to answer to civil charges when that process is complete, he will do so with vigor and be vindicated," Rubenstein Associates, Nacchio's public-relations firm, said in a statement.

Nacchio spokesman Scott Tagliarino declined further comment and said he won't say whether Nacchio received a Wells notice.

The SEC's reported action against Nacchio, 55, who stepped down as Denver-based Qwest's chief in 2002, comes days after Qwest agreed to a $250 million settlement to end the SEC's 2-½-year investigation into the company's accounting. Qwest, the biggest local-telephone company in 14 states, in October disclosed the misstatement of 2000 and 2001 results.

SEC spokesman John Heine declined to comment.

The company remains the subject of a Justice Department investigation and faces a class-action shareholder lawsuit.

The statement on behalf of Nacchio said he didn't act alone at Qwest in the matters the SEC is scrutinizing.

"The actions which appear to be the focus of the SEC's inquiry were subject to review and approval by numerous people, including other senior company personnel, the company's outside legal and accounting professionals and the Qwest board of directors and its audit committee," it says.

People can respond to Wells notices by attempting to dissuade the SEC from pursuing action.

At least 12 additional current and former Qwest employees, including former President Afshin Mohebbi, received Wells notices, people familiar with the matter said in January.

About 10 midlevel Qwest executives have been formally accused by the SEC of accounting misdeeds.

Copyright © 2004 The Seattle Times Company

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