Instructions:

1. Read the following articles or other articles related to the Qwest case:

• SEC Charges Former Qwest CEO Joseph Nacchio and Eight Others with Massive Financial Disclosure Fraud, March 15, 2005.Links to an external site.
• Glackin, Michael, Admits to Improper Accounting, The Scotsman, July 30, 2002.
• O'Clery, Conor, Qwest Executives Made Fortunes in Stock Sales as Firm floundered, The Irish Times, July 31, 2002Links to an external site..
• Searchey, Dionne, Peter Lattman, Peter Grant, and Amol Sharma, Qwest's Nacchio is Found Guilty in Trading Case, The Wall Street Journal, April 20, 2007.

2. Answer the following discussion questions:

• What was the date when the SEC filed charges against the CEO of Qwest and other executives?
• Excluding Mr. Nacchio, how many other executives were named in the SEC's lawsuit?
• What was the dollar value of Qwest's excess amount?
• Did Qwest admit to incorrect accounting before or after the SEC lawsuit?
• How many charges was Mr. Nacchio convicted of?
• How old was Mr. Nacchio at the time of his conviction?
• Are accounting disclosures less important, equally important, or more important than financial statements? Why?
• Why should stock markets be concerned when executives sell shares, and when should they be concerned? In your opinion, should executive stock sales be disclosed? Why or why not?
• Should the SEC exercise leniency towards a company that acknowledges and reports accounting irregularities and other frauds within the company?

1. Read the following articles or other articles related to the Qwest case: - SEC Charges Former Qwest CEO Joseph Nacchio and Eight Others with Massive Financial Disclosure Fraud, March 15, 2005. - Glackin, Michael, "Admits to Improper Accounting," The Scotsman, July 30, 2002. - O'Clery, Conor, Qwest Executives Made Fortunes in Stock Sales as Firm floundered, The Irish Times, July 31, 2002 . - Searchey, Dionne, Peter Lattman, Peter Grant, and Amol Sharma, "Qwest's Nacchio is Found Guilty in Trading Case," The Wall Street Journal, April 20, 2007. 2. Answer the following discussion questions: -What was the date when the SEC filed charges against the CEO of Qwest and other executives? - Excluding Mr. Nacchio, how many other executives were named in the SEC's lawsuit? - What was the dollar value of Qwest's excess amount? - Did Qwest admit to incorrect accounting before or after the SEC lawsuit? - How many charges was Mr. Nacchio convicted of? - How old was Mr. Nacchio at the time of his conviction? - Are accounting disclosures less important, equally important, or more important than financial statements? Why? - Why should stock markets be concerned when executives sell shares, and when should they be concerned? In your opinion, should executive stock sales be disclosed? Why or why not? - Should the SEC exercise leniency towards a company that acknowledges and reports accounting irregularities and other frauds within the company