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SEC asks Qwest for Global Crossing data

The telecom company says it will cooperate with the SEC, though it gives no details on the type of papers being sought on the troubled fiber-optic company.

Qwest Communications International said Monday that the Securities and Exchange Commission has asked to see documents pertaining to troubled fiber-optic company Global Crossing.

Qwest said Monday that it had received a subpoena from the SEC for the papers, and that it would cooperate with the investigation. The telecommunications company did not give any details about what sort of information was being requested.

The SEC and FBI are scrutinizing Global Crossing for possible accounting problems, a probe that comes amid the Enron debacle. A former Global Crossing employee charged in a letter to the SEC that the company, which filed for bankruptcy in January, improperly inflated revenue.

In January, Qwest told analysts that based on its records, Global Crossing owed the company $7 million. Qwest is still supposed to be providing monthly services to Global Crossing for $7 million per month, according to SEC documents, but Qwest executives say they believe they could terminate the services if they are not paid.