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Prosecutors calling for lighter sentence for former Qwest CFO July 28, 2006 (Associated Press) Former Qwest finance chief Robin Szeliga could wind up with probation for insider trading after prosecutors recommended a lighter sentence Wednesday for her "extensive" cooperation in the government investigation of the company's sprawling accounting scandal. U.S. Attorney William Leone asked a judge to approve a reduced sentence; the amount of time recommended - if any - wasn't made public. Szeliga, who has agreed to pay $125,000 restitution to reflect her total profit from insider trading, faces a maximum sentence of up to 10 years in prison and a $1 million fine at Friday's session before U.S. District Judge Walker Miller. Szeliga's attorney declined comment. Szeliga has helped piece together information related to the investigation, explaining concepts and identifying documents, Leone said in a court filing. "In some instances, the defendant was one of only three participants in key communications," he wrote. "Her knowledge of these communications has been essential to the government's investigation." Szeliga cooperated despite being exposed to the risk of possible civil liability charges and despite the serious financial consequences of her plea, Leone said. Szeliga pleaded guilty a year ago to the single count of insider trading amid the multibillion-dollar accounting scandal at Denver-based Qwest Communications International Inc. She admitted improperly selling 10,000 shares of Qwest stock in 2001 for a profit of $125,000. Prosecutors say Szeliga sold the stock based on nonpublic information. Szeliga is expected to testify against Qwest's former chief executive officer, Joe Nacchio, who is facing trial on 42 counts of insider trading. In April, prosecutors asked Miller to delay sentencing until December noting that Nacchio's trial date had not been set. Miller agreed to a three-month delay at the defense's request. Nacchio is accused of selling $101 million in stock in 2001 based on inside knowledge that Qwest would be unable to meet revenue targets because it had improperly used nonrecurring revenue to meet those goals. Each count carries a penalty of up to 10 years in prison and a $1 million fine. Nacchio has pleaded not guilty and remains free on bail. A motions hearing is set for Aug. 25 in Denver. In a pending civil case, Szeliga, Nacchio and other former executives are accused of orchestrating massive financial fraud at Qwest. The SEC has said the fraud at Qwest occurred between April 1999 and March 2002, allowing it to improperly report approximately $3 billion in revenue that later was restated. Qwest is the primary telephone service company in 14 mostly Western states. -- SANDY SHORE (AP Business Writer) |
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