Joel M. Arnold, Grant P. Graham, John M. Walker, and Richard L. Weston

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21148 / July 23, 2009

Accounting and Auditing Enforcement Release No. 3018 / July 23, 2009

SEC v. Joel M. Arnold, Grant P. Graham, John M. Walker, and Richard L. Weston, Civil Action No. 03-cv-0328 (D. Colo.)

SEC ANNOUNCES FINAL DISPOSITIONS IN CASE INVOLVING ALLEGED IMPROPER ACCOUNTING PRACTICES AT QWEST COMMUNICATIONS INT'L

The Securities and Exchange Commission ("Commission") announced today that on July 8, 2009, the United States District Court for the District of Colorado entered final judgments against Joel M. Arnold, Grant P. Graham, and Richard L. Weston. The entry of final judgments settles the Commission's claims against these individuals. Also, on the same date, the District Court granted the Commission's motion to dismiss all claims against John M. Walker.

In its complaint in this matter, the Commission alleged improper accounting practices by the defendants at Qwest Communications International, Inc., a Denver telecommunications company, relating to two transactions which inflated the company's revenues and overstated its performance during the third quarter 2000 and the second quarter 2001.

Without admitting or denying the allegations in the Commission's complaint, Arnold consented to the entry of a judgment enjoining him from violating Sections 13(b)(5) of the Exchange Act of 1934 ("Exchange Act") and Rule 13b2-1 thereunder, and from aiding and abetting violations of Sections 13(a) and 13(b)(2) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. The judgment also requires Arnold to pay a civil penalty of $55,000.

Also without admitting or denying the allegations in the Commission's complaint, Graham consented to the entry of a judgment enjoining him from violating Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder, from violating Section 17(a) of the Securities Act of 1933, and from aiding and abetting violations of Sections 13(a) and 13(b)(2) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. The judgment also bars Graham from acting as an officer or director of a public company for a period of five years, and requires him to pay a civil penalty of $50,000.

Also without admitting or denying the allegations in the Commission's complaint, Weston consented to the entry of a judgment enjoining him from violating Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder, and from aiding and abetting violations of Sections 13(a) and 13(b)(2) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. The judgment also requires Weston to pay a civil penalty of $20,000.