SEC probe into Global Crossing crosses Qwest's path

Qwest has been subpoenaed by the U.S. Securities and Exchange Commission for documents relating to the investigation of bankrupt telecommunication services provider Global Crossing.

The company intends to cooperate fully with the SEC, Qwest said in a release Monday.

Global Crossing stands accused of accounting impropriety by a former company finance vice president. Roy Olofson said in a statement issued through his attorneys that Global Crossing improperly recorded a $100 million sale of capacity to Qwest in the first half of 2001 as cash revenue, even though Qwest sold almost the same capacity to Global Crossing in exchange.

Qwest accounted for the swap differently, Olofson said in the statement. Olofson's allegations prompted the SEC investigation into Global Crossing.

The SEC would not comment on the investigation.

The IDG News Service is a Network World affiliate.