Ex-Qwest Executive Charged With Fraud
The Securities and Exchange Commission filed a civil fraud charge Tuesday against a former executive of a Qwest Communications International subsidiary, alleging that he concealed a $112-million overstatement of revenue.
The complaint alleges that Michael Felicissimo, who was chief financial officer for Qwest Wireless, hid the improper recognition of revenue from mobile phone products and services.
The complaint, filed in U.S. District Court in Denver, alleges that between January 2000 and September 2001, Qwest Wireless improperly recorded revenue from mobile phone accessories that were given free to customers as an inducement to buy other products and services.
The accounting group informed Felicissimo of the errors, but rather than report it to the president of Qwest Wireless or other Qwest executives, he concealed the resulting overstatements and directed others to do the same, the complaint said.
The SEC is seeking the return of compensation, bonuses and other income stemming from the alleged overstatements and an order barring Felicissimo from serving as a director or officer of a publicly held company.
Felicissimo did not immediately return a phone call seeking comment.
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