The U.S. Securities and Exchange Commission has reached a settlement with Robert Woodruff, the former chief financial officer for Qwest Communications International.
In the agreement filed Thursday, Woodruff does not admit or deny allegations that he and other Qwest employees fraudulently boosted revenues by $3 billion between 1999 and 2002. Qwest later restated much of that revenue.
Woodruff's attorneys, John Caroll and Steven Glaser of the New York law firm of Skadden Arps, issued a statement that said Woodruff "is happy to put this matter behind him."
Court documents filed in U.S. District Court in Denver state that Woodruff must pay $2,671,475 within 45 days: $1,731,048 in disgorgements, $640,427 in prejudgment interest and a $300,000 civil penalty.
The money will be deposited in an interest-bearing account until further order of the court. The SEC can propose a plan to distribute the money, pending court approval.
Woodruff will seek a tax credit or deduction on the penalty amount and also is barred from serving as an officer of a public company for five years, according to the agreement.
The SEC also has agreed to dismiss similar charges against former Qwest accountant Frank Noyes.
Woodruff and Noyes were the last two defendants in a case filed by the SEC in 2005 against several Qwest officials, including former chief executive Joe Nacchio. Charges have been dismissed or settlements have been reached with those defendants.
Nacchio was among those who settled with the SEC.