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DENVER—Federal regulators on Wednesday began distributing $267 million to investors who lost money when Qwest Communications International Inc.’s stock collapsed in 2002 amid allegations of accounting fraud.

About 200,000 investors who purchased Qwest securities between July 27, 1999, and July 28, 2002, would receive payments, according to a statement from the Securities and Exchange Commission. The distribution process is expected to be completed within five days.

Money for payments comes mainly from $250 million paid by Qwest to settle allegations of accounting fraud. Qwest did not admit wrongdoing in reaching the settlement.

Additional money came from SEC settlements with several former Qwest executives, including Robin Szeliga, who also paid restitution after pleading guilty to one felony count of insider trading.

SEC regulators alleged that Qwest improperly reported more than $3 billion in revenue and excluded $231 million in expenses to meet “ambitious revenue and earnings projections.” The phone company later restated $2.2 billion in revenue.

SEC regulators expect two civil cases, including one pending against former CEO Joe Nacchio and other executives, will add more money to the SEC’s so-called Fair Fund that’s being distributed to defrauded investors.

Nacchio was sentenced to six years in prison and $71 million fines and forfeitures last week after he was convicted in April of 19 counts of insider trading for selling stock when he knew Qwest faced financial risk but concealed the problems from investors.

Nacchio, 58, was denied bail during his appeal and is expected to begin his prison term within two months.