No prison time in Qwest case

DENVER — After issuing a tearful apology for an "error in judgment," former Qwest finance chief Robin Szeliga was sentenced Friday to two years' probation, six months of home detention and a $250,000 fine for insider trading during the company's multibillion-dollar accounting scandal.

Szeliga, the highest-ranking executive from Qwest to plead guilty in the government's case, is expected to be a key witness in the trial of former Qwest CEO Joseph Nacchio, who faces 42 counts of insider trading. U.S. Attorney Bill Leone called Szeliga's help in that case "very substantial."

U.S. District Judge Walker Miller agreed with prosecutors who asked for a lenient sentence because of her cooperation in the investigation into Denver-based Qwest Communications International Inc.

"It is my practice to give careful consideration, considerable weight, to the parties' agreement because they know considerably more about the case than I will ever know," Miller said. He said the request for leniency was legal, though he questioned attorneys on both sides how Szeliga's plea deal compared with other Qwest cases.

"I do not divorce this conduct from the overall illegality," Miller said. "There does seem to be a culture of — I would use the word — greed."

The single insider trading charge carries a maximum penalty of 10 years in prison and a $1 million fine. Szeliga has also agreed to pay $125,000 in restitution, the amount she earned on the improper stock trade in 2001.

"We had to do a lot of soul searching and study" to arrive at the sentencing recommendation for Szeliga, Leone said. Szeliga said she "strayed from the Lord's guidance" and would accept whatever punishment she received.

"My life is forever changed by this mistake," Szeliga said in a soft voice that trembled at times. "I have had to come to grips with my own failings and demons."

Terry Bird, her attorney, said Szeliga "is unemployed and unemployable." He said she has lost a job since leaving Qwest because she was a "headline risk" and has kept busy by teaching yoga and through volunteer work.

In previous cases, former Qwest executive Marc Weisberg received probation and a $250,000 fine for wire fraud. Of four former midlevel executives accused of improperly booking revenue in an Arizona schools deal, two were acquitted, another was sentenced to probation and a fourth is expected to receive probation.

Qwest earlier agreed to pay $250 million to settle SEC charges of fraud in a deal that did not cover individual officials — including Nacchio.