Federal regulators said Tuesday a former executive of Qwest Communications International Inc. has agreed to pay $2.1 million to settle civil charges that he participated in a fraud conspiracy that forced the telecommunications company to restate billions in revenue.
Gregory M. Casey also agreed to cooperate with the Securities and Exchange Commission's investigation into accounting irregularities at the Denver-based company, which serves 14 mostly Western states. He did not admit any wrongdoing.
The agreement prohibits Casey from acting as an officer or director of a public company for five years.
"This is an important settlement and this will move our case forward," said Mary Brady, assistant SEC regional director for enforcement. "We view him as an important witness."
Casey's attorney did not immediately return a telephone message.
Casey and federal regulators reached a tentative settlement in May. Details were withheld until Tuesday.
Casey was one of seven former Qwest executives, including former CEO Joseph Nacchio, charged in a civil lawsuit alleging accounting schemes that later forced the company to erase revenue. Nacchio has denied wrongdoing. His case is still pending.
Casey was accused of backdating contracts to allow Qwest to immediately recognize revenue it was to receive later. He earned $34.9 million from Qwest from 1999 to 2001, mostly by exercising stock options, according to the SEC lawsuit.
Brady said Casey is the only defendant who has reached a final settlement. She declined additional comment.
Former CFO Robin Szeliga this month pleaded guilty to a criminal count of insider trading, becoming the highest-ranking officer to admit wrongdoing. She also has reached a deal with the SEC, but details have not been disclosed.
The SEC has said the fraud at Qwest occurred between April 1999 and March 2002 and allowed it to improperly report approximately $3 billion in revenue that helped clear the way for its 2000 acquisition of the regional phone company U S West. The revenue was later restated.
Qwest agreed last year to pay $250 million to settle SEC fraud charges in a deal that did not include individuals.