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The fraud and conspiracy trial of four former Qwest executives ended Friday with the acquittal of two defendants and no convictions, a devastating end for the federal government’s two-year criminal investigation.

John M. Walker, Bryan K. Treadway, Thomas W. Hall and Grant P. Graham each faced 11 counts of conspiracy, securities fraud, wire fraud and false statements.

After 10 days of deliberations, a federal jury on Friday cleared Walker and Treadway on all charges.

“Mr. Treadway and his family are very gratified with the jury’s verdict,” said Stephen Cowen, Treadway’s attorney. “He’s going to get his life back in order.”

Graham was acquitted on three wire-fraud charges. The jury deadlocked on the remaining eight counts against Graham and deadlocked on all charges against Hall.

Prosecutors said they will decide within two weeks whether to retry the cases against Graham and Hall.

First Assistant U.S. Attorney William Leone, the lead prosecutor, said the verdict would not affect the government’s ongoing investigation of Qwest’s past business practices.

“Each case stands on its own,” Leone said. “It would be a mistake to put too much emphasis on one case.”

The four defendants had faced up to 10 years in prison on each of three counts and up to five years on each of the eight other counts.

Walker was a vice president of sales, and Treadway was a controller. Graham was a senior vice president of finance, and Hall was a senior vice president of sales.

The conclusion of the seven- week trial left the defendants and their families relieved but exhausted and numb, they said.

As they wiped away tears, Treadway’s and Walker’s wives embraced each other shortly after U.S. District Judge Robert Blackburn announced to a packed courtroom that their husbands had been acquitted on all charges.

“This has devastated us financially and emotionally,” said Walker’s wife, Kristin.

Walker, who maintained a cheerful demeanor throughout the trial, said the acquittal left him relieved.

For Graham and Hall, the trials and tribulations continue. The two are due back in court April 26 for a status conference on the case.

“I’m pretty numb,” said Graham’s wife, Christine, who attended the entire trial.

Graham declined to comment.

“We would’ve liked the entry of more acquittals, but we’ll go on from here,” said Daniel Sears, Graham’s attorney.

Hall also declined to comment. He was the only defendant for whom the jury deadlocked on all charges.

His attorney, Jeff Springer, said he will consider his client’s options.

“Tom Hall will be vindicated,” Springer said.

A grand jury in February 2003 indicted the four men on charges of fraud and conspiracy in connection with a 2001 deal between Qwest and the Arizona School Facilities Board to link schools to the Internet

None of the men had prior criminal records. Each had left Qwest by the time the indictment was announced; Graham and Hall were fired, Walker was laid off and Treadway left to rejoin former employer Delta Air Lines.

In the indictment, federal prosecutors alleged that the four fraudulently concocted a plan to allow Qwest to log $33.6 million in revenue from the deal in the second quarter of 2001. Instead, the company should have spread that revenue over several subsequent quarters, prosecutors said.

Prosecutors said Friday that they were disappointed by the jury’s verdicts but vowed to continue their investigation into past business practices at the Denver-based phone company.

Qwest issued the following statement Friday: “We recognize that this was a difficult process. The emphasis at Qwest has been and will continue to be on the single most important issue: delivering outstanding service to customers through our Spirit of Service.”

Denver Post staff writer Kris Hudson contributed to this report.