Stacie Hollywood

1

• Stacie Hollywood
• Michelle Melnar
• Monica Moerbe
• Cassie Russo
• Section 601

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Qwests Quest

• Premier provider of full-time communications for
  people at home, work, or on the move
• Provides Internet, Multimedia, and voice services
  over its broadband fiber-optic network for more
  than 25 million customers
• 4th largest long-distance company in the U.S.

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Weve got Trouble.

• Guns for Whiskey Exchange
• The former CEO, Nacchio, promised investors
  earnings and revenue increases
• Would require Qwest to become the most profitable
  company in the World
• Bought and Sold Capacity and Fiber-Optic cables
  to other Companies

Other Fiber-Optic Companies
Qwest
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Doesnt end there

• Cozy and Conflicted Relationships
• Corporate Executives promised sales to Suppliers,
  in exchange for Suppliers Stock
• Stock was given to Executives before or during
  IPOs
• Executives make millions

Purchases of Excess Supplies
Qwest
Suppliers
Suppliers Stocks to Executives
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Hand in the Cookie Jar

• Shareholders begin to Question Accounting
  Practices
• SEC investigates Tele-com Industry
• Global Crossing begins to Falter
• Executives candidly discuss Capacity Swaps
• Emails raise questions on Companies defenses
• Auditors and Audit Committee Question Practices

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Effects

• Voluntarily Restated Revenues

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Market Effects
2001 2002
2003 www.bigcharts.com
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• Questions?