A former Qwest executive facing a year of probation in a $34 million fraud scheme may have his sentence converted to time already served, attorneys said Monday.
Grant Graham pleaded guilty nearly two years ago to an accessory count, but his sentence has not been imposed. His plea agreement requires him to cooperate with prosecutors in their insider-trading case against former Qwest chief executive Joe Nacchio, who has not yet gone to trial.
During a hearing in federal court Monday, U.S. Attorney Bill Leone and Graham’s attorney said they have discussed changing Graham’s probation sentence to the time he has served since his plea.
Leone told U.S. District Judge Robert Blackburn he hoped Graham’s sentence could be finalized by year-end, and Blackburn asked for a status report to be submitted by late June.
Graham was one of four midlevel Qwest Communications International Inc. managers accused of improperly booking nearly $34 million in revenue during a 2001 deal to link Arizona schools to the Internet.
He pleaded guilty to one count of accessory after the fact to wire fraud in May 2004. Prosecutors dropped eight other charges against him and agreed not to seek restitution.
The agreement was reached after a jury acquitted Graham of three wire-fraud charges and deadlocked on three counts of wire fraud, three counts of securities fraud, one count of conspiracy and one count of making a false statement.
