DENVER — The government said Friday it will retry one former Qwest Communications executive accused of improperly booking nearly $34 million in revenue in 2001 while a second has agreed to a plea deal.
Federal prosecutors told U.S. District Judge Robert Blackburn they will retry Thomas Hall, a one-time Qwest sales executive. A jury deadlocked on all 11 counts against him last month following a nine-week trial.
Assistant U.S. Attorney William Leone told the judge prosecutors were still reviewing the charges against Hall. "Obviously, we're interested in paring down the indictment," he said.
He also said former executive Grant Graham reached a last-second agreement to change his plea but declined to comment on what counts were involved until a hearing later this month. Graham is expected to plead guilty. His attorney, Daniel Sears, declined comment.
Leone refused to say whether prosecutors discussed a possible plea with Hall.
Graham and Hall were among four former Qwest executives charged with improperly booking the money from an equipment sale to Arizona schools in 2001. Each faced 11 charges including conspiracy, wire fraud and securities fraud.
Defense attorneys said their clients were being sacrificed by company higher-ups and had been led to believe the Arizona deal was OK by colleagues and other officials.
A jury acquitted John Walker and Bryan Treadway of all charges on April 16. The jury acquitted Graham of three wire fraud charges, but deadlocked on three counts of wire fraud, three counts of securities fraud, conspiracy and making a false statement.
The verdict was the first to come out of investigations that prompted Qwest chief executive Joseph Nacchio to quit in 2002 and ultimately led the Denver-based company to erase $2.5 billion in revenue.
During the hearing, Leone asked the judge for clarification on an instruction given to jurors last month that said in order to find the defendants guilty of wire fraud, they must be convinced the men knew their actions were wrong but continued anyway.
Hall's attorney, Jeff Springer, objected, saying the judge is not required to tell prosecutors in advance so they can adjust their case accordingly. "I think it would be setting a dangerous precedent," he said.
Blackburn said he was bound by case law that set the definition at "knowingly and willfully."
During deliberations, the jury twice sought clarification on the definition. Foreman George Gerstle has said members had difficulty determining the defendants' intent.
A change-of-plea hearing was set May 28 for Graham and a July 7 trial date for Hall, estimating it would last four weeks.
Qwest Communications International Inc. provides telephone services in 14 states in the West and Midwest, including Utah.