SEC seeks to begin payments to Qwest investors
The U.S. Securities and Exchange Commission asked a federal judge to let it start disbursing money next week from a $267 million fund to Qwest Communications International Inc. shareholders defrauded in the company’s 1999 to 2002 accounting scandal, the Denver Business Journal reported.
Following a 2 1/2-year probe, the SEC accused Qwest of fraudulently booking more than $3.8 billion in revenue to boost its stock price. An investor-restitution fund was created following settlement.
The fund includes a $250 million civil penalty paid by the company in a 2004, as well as additional money paid by former Qwest executives.
The agency seeks to distribute the funds to some 200,000 qualifying investors who purchased Qwest stock between July 27, 1999, and July 28, 2002. The money would be distributed on a prorated basis.
The SEC said it expects to begin mailing checks to defrauded investors starting Tuesday.

