Qwest at center of criminal probe

www.msnbc.com ^ | 07/10/02 | Unknown

[kcvl]

Qwest at center of criminal probe

U.S. Attorney’s office told firm of investigation Tuesday

BREAKING NEWS

NEW YORK, July 10 — Local telephone company Qwest Communications International Inc. Wednesday said it was notified on Tuesday afternoon that the U.S. Attorney’s office began a criminal investigation of the company.

[kcvl]

THE U.S. ATTORNEY’S office did not disclose the subject matter of the investigation, it said.
Qwest said it plans to fully cooperate.

[phasma proeliator]

qwest deserves all the "bad" they get...

that's the most screwed up customer un-friendly company!

[nicmarlo]

qwest deserves all the "bad" they get... that's the most screwed up customer un-friendly company!

What you said.

[Red Jones]

ditto ditto ditto on what you said; - Qwest deserves everything bad that they get.

If they are your local provider, then please find another provider. You can keep your old phone number and you'll save money each month. You won't have to pay for that 100 million dollar a year salary for their CEO, who is an arrogant jerk and probably a crook.

[My Favorite Headache]

You read my mind. I am praying for a Clinton connection somewhere here. This company blows.

[monkeyshine]

$100 million a year salary? Sheesh! Not even Tom Cruise makes that much.

Usually CEO's make a modest salary (only $2-8 million :-0) and take the rest in options.

[AmericanInTokyo]

From the Web:

"Like the Republicans last week in Philadelphia, the Democrats are taking advantage of federal campaign laws to use corporate donations not only for their party gathering at the downtown Staples Center, but also the parties and galas from Long Beach to Hollywood.

"New Englanders will have an array of opportunities, with the Massachusetts delegates, for example, enjoying breakfast Thursday at the Beverly Hilton courtesy of US Representative Edward J. Markey of Malden - and Qwest Communications, according to a schedule provided by the state party. Qwest is a major telecommunications provider; Markey is the top Democrat on the House telecommunications subcommittee."

FOLLOW THE MONEY

[TommyDale]

The buzz around the telecommunications industry is that this trend will continue until fully 80% of existing companies are wiped out. The number I have heard is that 23 companies are expected to bite the big one, with only 6 survivors.

[DrDavid]

Your post might explain why Qwest replaced the $100 million/year CEO Pro-Bush Republican with a pro Union guy...

[kcvl]

Feds to seek ImClone extension

Deadline likely to be extended 30 days

By Jerry Markon
THE WALL STREET JOURNAL

NEW YORK, July 10 — Federal prosecutors plan to seek an extension of Friday’s deadline to indict former ImClone Systems Inc. Chief Executive Officer Samuel Waksal so they can continue plea discussions with Dr. Waksal and his lawyers.

THE DEADLINE IS likely to be extended 30 days so talks can continue on a possible “global settlement” of the insider-trading case against Dr. Waksal, people familiar with the case said.
Such a settlement might involve Dr. Waksal pleading guilty in exchange for other members of his family not being prosecuted, these people said


Dr. Waksal was arrested last month and charged in a criminal complaint with insider trading for allegedly trying to sell his ImClone shares and tipping off family members before the company announced that the Food and Drug Administration had rejected its application for its promising new cancer-fighting drug.

Under federal law, anyone charged in that manner must be indicted by a grand jury within 30 days or get a preliminary hearing where evidence against them would be presented. Such hearings are rare in New York federal courts.

Also under federal investigation is lifestyle-and-media entrepreneur Martha Stewart, a close friend of Dr. Waksal’s, who sold nearly 4,000 shares of ImClone on Dec. 27, the day before the FDA news was made public.

The probe of Ms. Stewart recently broadened to include possible charges of obstruction of justice and making false statements after the assistant to her broker cast doubt on her explanation that she sold the stock because of a previous arrangement to unload ImClone shares when the price fell below $60.

People close to the case have said that Dr. Waksal’s father and daughter, who both sold shares before the cancer-drug announcement, are also likely to face charges if there is no plea deal. Prosecutors and attorneys for Dr. Waksal have held one preliminary meeting in recent days to discuss a possible settlement. It is unclear if such a settlement would involve Ms. Stewart or the possible charges against her.

Attorneys for Dr. Waksal are likely to support the prosecutors’ request. Any extension must be approved by a federal judge, but approval is nearly always granted if both sides request it.

[dtel]

"The buzz around the telecommunications industry is that this trend will continue until fully 80% of existing companies are wiped out. The number I have heard is that 23 companies are expected to bite the big one, with only 6 survivors."

Do the buzzers mention Level 3 as a survivor?
See this link:
http://www.freerepublic.com/focus/news/713803/posts?page=1

Follow the money?

[kcvl]

FOLLOW THE MONEY

Telecommunications CONTRIBUTIONS FROM LONG DISTANCE TELEPHONE CARRIERS AND BABY BELLS TO THE HOUSE OF REPRESENTATIVES, 1999-2001*

Sorted by contributions from Baby Bells (BellSouth, Qwest Communications, SBC Communications and Verizon). Long distance refers to AT&T, Sprint and Worldcom.

These are the same elected officials who are going to clean up Wall Street! ROFLOL!!!

[Methos8]

Per Dow Jones:

The Wall Street Journal reported Friday that a possible issue for Qwest is whether it properly recorded revenue. The company was one of the most aggressive users of "swap" transactions - selling long-term capacity on its fiber network to another carrier, buying the same amount of fiber on another carrier's network and then booking the contract as revenue.

The practice boosted Qwest's revenue by more than $1 billion in 2001, according to filings with the SEC.

[AmericanInTokyo]

It is funny (if not ironic) that America's big cry about three or four years ago was: "Don't worry about MORALITY IN LEADERSHIP! Busybodies! Everyone 'does it'. Now leave people alone. We are busy making money here."

It was all "THE ECONOMY, Stupid". But decent people (usually conservatives or theists) who stood up for honesty on the part of our leaders be they in govt. or private industry, were for the most part shunted off as prudes. Particularly by the big money makers who felt all is OK if the bottom line is OK.

Now the chickens are coming home to roost in this post-Clinton Ethics America, and many many Americans are liable to lose their homes or scale back their plans for the kids' college. All because they insisted that money making, power and profits far exceed truth, integrity, ethics and morality.

[AmericanInTokyo]

Looks to me, from reading the roster of donation recipients from Qwest and others, that structural corruption is a pretty bipartisan thing there in ol' Washington, D.C.

Look at Hastert and Dingel, for example. Man, everyone's on the take. I guess it truly is the era of, "well, if they are all going to get a piece, I want may piece, too." What a bunch of hypocrites calling committee meetings and chewing out corrupt business executives.

Pot Kettle Black.

[Chief Engineer]

How can I get away from Quest? They own the wires that come into my home.

[kcvl]

Qwest CEO Joe Nacchio took BellSouth to task for reportedly selling its Qwest stock. Nacchio warned BellSouth that if it continues to dump, he'll move into BellSouth's region with telecommunications services.


Qwest bought $300 million worth of Enron stock in December, as Enron was collapsing.
Forbes Dec 13, 2001

[kcvl]

Qwest at center of criminal probe

U.S. Attorney’s office told firm of investigation Tuesday


MSNBC NEWS SERVICES

DENVER, July 10 — Already under the microscope for possible accounting problems, Qwest Communications International Inc. on Wednesday confirmed that the U.S. attorney’s office launched a criminal investigation into the local telephone company. Share prices slumped over 30 percent in morning trading following the announcement.

[kcvl]

Qwest asked employees late last month to take unpaid leave in a move to cut costs. In mid-June, the company ousted Chairman and Chief Executive Joseph Nacchio, seeking to soothe investors and buoy its mauled stock price.
Qwest’s disclosure marks the latest announcement from a U.S. company that has come under government scrutiny. Others include WorldCom Group, Enron Corp., Global Crossing Ltd. and Kmart Corp.
Qwest, which was once part at the Bell System under AT&T Corp., is the local phone company for 14 states extending from Minnesota west to Washington and southwest to Arizona and New Mexico.

The Associated Press and Reuters contributed to this report.