Qwest accountant requests fraud trial to continue

1 September 2006

A former Qwest accountant facing civil charges of fraud has asked for his case to continue while the former chief executive of the phone company stands trial for insider-trading.

Lawyers representing Frank Noyes say that despite the alleged involvement of their client in the criminal case facing Joe Nacchio, this should not prevent the case going ahead while Mr Nacchio stands trial.

The men are both implicated in a fraud scam where Mr Nacchio is alleged to have sold stock in his company, knowing that share prices were about to fall because Qwest would be unable to meet its revenue targets.

The Securities and Exchange Commission says that Qwest was able to improperly report around $3 billion in revenue that helped it secure acquisitions, thanks to fraudulent activity between 1999 and 2003.

Mr Nacchio faces a total of 42 counts of insider trading relating to the sale of over $100 million worth of stock.

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