Former Qwest Wireless Chief Financial Officer Michael Felicissimo was sued this week by the U.S. Securities and Exchange Commission for providing it with materially false and misleading financial statements.
According to the SEC, parent company Qwest Communications International Inc. improperly recognized $112 million in revenue from its Qwest Wireless subsidiary during the period from January 2000 to September 2002.
Furthermore, according to this week’s filing in Colorado’s federal district court, Felicissimo “refused to restate or otherwise correct the improperly recognized revenue, ordered his staff not to make corrections, concealed the revenue overstatement, and instructed others to do likewise,” violating the Securities Act of 1933 and the Securities Exchange Act of 1934.
The SEC is seeking an order requiring Felicissimo to pay third-tier civil penalties and to relinquish “all ill-gotten gains” including his Qwest salary, bonuses and stock. In addition, the SEC is seeking the court permanently bar Felicissimo from being an officer or director of any public company.
