Q:

What happened in the Qwest scandal?

A:

Quick Answer

Qwest Communications International Inc. was one of the largest telecommunications companies in the United States. In 2004, the Securities and Exchange Commission charged the company with securities fraud for inflating revenue almost $2.5 billion for earnings projections between 1999 to 2002. The company was also criminally charged for issuing false statements to the public about its financial condition. This fraud scheme allowed the executives to reap millions in profits.

Continue Reading

Full Answer

Former Qwest Communications Chief Executive Joseph Nacchio was indicted by a federal grand jury on 42 counts of insider trading and accused of illegally selling $101 million in company shares after privately learning that the company would not meet financial projections. After the public learned of the company's irregularities, the stock dropped from $60 per share to $1 per share. Nacchio was sentenced to 70 months in prison in 2007 and was ordered to pay a $19 million fine, in addition to forfeiting the $44 million made in the fraud scheme. The $44 million has been returned to the victims of the fraud scheme.

The SEC charged six other Qwest Communications executives and the company itself. The company settled the lawsuit by agreeing to pay $250 million for the SEC allegations.

Learn more about Modern History

Related Questions

  • Q:

    How did the Watergate scandal affect America?

    A:

    The Watergate scandal of 1972 is said to have made a number of Americans lose their faith in the government and in the leadership of their country, due to the realization they had been lied to through media. Bob Woodward and Carl Bernstein, two Washington Post journalists, revealed that former U.S. President Richard Nixon's re-election committee had laundered money for the scandal and that the executive administration was corrupt.

    Full Answer >
    Filed Under:
  • Q:

    How does SafeLink Wireless compare to other cellular companies?

    A:

    SafeLink Wireless, a part of TracFone Wireless, Inc., is the leading reduced-rate cellular provider in the United States and offers legitimate deals that are hard to beat by other companies. The service provides free and reduced-rate cellular service plans that are based on the customer's income level.

    Full Answer >
    Filed Under:
  • Q:

    What are some companies that make lactose-free products?

    A:

    Daiya Foods, Inc. and Lactaid, which are based in the United States, are two of the leading companies that makelactose-free products. Other lactose-free manufacturersare also presented on the website of Go Dairy Free, an organization that provides relevant information regarding dairy-free diet.

    Full Answer >
    Filed Under:
  • Q:

    What are some reliable sinkhole detection companies?

    A:

    Advanced Geosciences, Inc., Geo View and GHD are some reputable companies based in the United States that provide sinkhole detection and investigation services. All three companies have extensive experience in America and abroad.

    Full Answer >
    Filed Under:

Explore