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Ex-Qwest Executive Hall Pleads Guilty: Page 4 of 4

Qwest has not responded to reports that the company is negotiating with the SEC to settle separate civil fraud allegations related to swaps of goods and services with other companies. A union official last week said the company has tentatively agreed to pay $250 million to settle the claims.

To date, about a dozen former Qwest executives either have settled allegations or have been targeted in civil or criminal cases.

Two other former Qwest executives reached settlements with the SEC in June: Steven Haggerty, former regional vice president of Qwestlink, a construction business unit of Qwest, and Augustine Cruciotti, a former senior vice president of the unit.

Cruciotti agreed to pay $350,000 to settle charges that he arranged or helped arrange undisclosed agreements to trade fiber-optic capacity with other companies, resulting in improper recognition of $26.6 million in revenue, the SEC said. Haggerty agreed to pay $30,000 to settle charges he helped in such swaps.