According to an indictment qwest created a scheme to falsely recognize more than 33 million in revenue for the second quarter of 2001, A quarter quest was experiencing weak sales. The indictment also charged that qwest officials tried to hide their actions by falsifying documents and engaged in mail and securities fraud (1 ).
U.S. Attorney General, John Ashcroft, and Bill Donaldson the director of the Securities and Exchange Commission (SEC), held a joint news conference. The purpose was to announce charges against eight qwest employees. For their role in "a fraudulent scheme to meet at all costs (2 ).
The SEC said qwest improperly reported 3 billion in revenue between April 1999 and March 2002. This facilitated qwest merger with US West (a one time Bell company) in 2000. Top Exec Joe Nacchio was indicted on 42 counts of insider trading(3 ).