synopsis
when Joseph Necchio became Qwest CEO in january 1997 the company's existing strategy began to shift from building only a nationwide fiber-optic net-work to increasing communications services. By the time it released earnings in 1998 Nacchion proclaimed Qwest's successful transition from a network construction company to a communication company to a communications service provider "we successfully transitioned QWest... into a leading internet protocol-based multimedia company focused on the convergence of date, video,and voice services."
During 1999 and 2000, Qwest consistently met its aggressive revenue target and became a darling to its investors. Yet,when the company announced its intention to restate revenues in August 2002, its stock price plunged to a low of $1.11 per share in august 2002, from a high of $55 per share ub july 2000. Civil and criminal charges related to fraudulent activitity were brought against several Qwest executives, including CEOJoseph Nacchio, Nacchio, was convicted on 19 counts of illegal insider trading, and was sentenced to six years in prison in july 2007. He was also ordered to pay a $19 million that he gained in illegal stock sales.