October 23, 2004
Letter from Curtis Kennedy
SEC v. Qwest / Consent by Qwest

 

Nelson Phelps, President and Executive Director
ASSOCIATION OF U S WEST RETIREES
AUSWR Board Members
general membership

  From: CurtisLKennedy@aol.com [mailto:CurtisLKennedy@aol.com] Sent: Thursday, October 21, 2004 1:51 PM To: walshc@rockymountainnews.com Subject: SEC v. Qwest / Comments on the Complaint filed today. . .   October 21, 2004

  Chris Walsh
ROCKY MOUNTAIN NEWS
303-892-2744
walshc@RockyMountainNews.com

Chris,

    I have reviewed the 56 page Complaint the SEC filed today in Denver Federal Court.

      Take a look at paragraphs 181-189. . . . It is most troubling to the thousands of former U S WEST managers and occupational workers (many of whom I have had to personally provide legal guidance) to learn that while they were losing their lifetime jobs, "Senior Management," not being satisfied with their stratospheric compensation, engaged in a gluttonous scheme to reap additional millions of dollars by acquiring stock in vendors, including one vendor to which Qwest committed to buy $400 million in "equipment that Qwest did not need and knew would never be deployed in its network."  (See paragraph 185.)

    I am concerned that the SEC says nothing about what/how it will deal with the $250 million to be received by Qwest as settlement of this Complaint.

    I am disappointed for the investors that the SEC did not invoke Section 21(d)(5) of the Exchange Act which provides that "in any action or proceeding brought or instituted by the Commission under any provision of the securities laws, the Commission may seek, and any Federal court may grant, any equitable relief that may be appropriate or necessary for the benefit of investors."

    The SEC's 56 page complaint says nothing about doing something for the benefit of investors.

    So, what is the SEC's intent?  To collect a $250 million civil penalty from Qwest and place the money in the United States Treasury - money ultimately to be used to pay Halliburton's bills?

    Curtis

  Curtis L. Kennedy
Attorney-at-law
8405 E. Princeton Ave
. Denver, CO  80237-1741
Tele: 303-770-0440
Fax: 303-843-0360
CurtisLKennedy@aol.com

From: Walsh, Chris
Sent: Thursday, October 21, 2004 2:04 PM
Subject: FW: SEC v. Qwest / Comments on the Complaint filed today

  Curtis, the complaint doesn't say, but the consent order does - Q is to put the $250 million toward reimbursing shareholders under the S-Ox Fair Funds provision

Chris Walsh

Nelson Phelps, President and Executive Director
ASSOCIATION OF U S WEST RETIREES
AUSWR Board Members
general membership

    I have attached hereto in Adobe PDF file format a copy of the
12 page consent judgment ("Consent of Qwest Communications International, Inc.") which is being discussed in virtually all of the nation's newspapers today.

    I am trying to find out when, where and how the claims process will begin.

    Curtis
CurtisLKennedy@aol.com
303-770-0440


 

SEC v. Qwest consent by Qwest - (12 pages)