Afshin Mohebbi
Encyclopedia
Afshin Mohebbi is an Iranian-born United States businessman, best known as the former President and Chief Operating Officer of Qwest Communications
International.
A US citizen, he was born in Iran
and raised in California
. Mohebbi received his Bachelor of Science degree in electrical engineering with an emphasis on communications systems from the University of California, Irvine
, in two years when he was only 18 years old. He followed this up with a Telecommunications Engineering Certificate from the University of California, Los Angeles
. He also has an MBA (dean's scholar) from the University of California
From 1983, Mohebbi undertook a series of posts in sales and marketing with Pacific Bell
, including vice president-business markets; and later with SBC Communications. He then became President and Managing Director of British Telecom's United Kingdom Markets division, an $18 billion business unit serving 20 million consumers and 1.5 million businesses in the UK. At 34, he was the youngest BT Managing Director to lead a major division.
After 20 months Mohebbi left to join Qwest Communications International, managing Qwests line operations, including market-facing business units; network engineering and operations; information technology and staff support functions. At age 36, Mohebbi became the younger ever president of a major telecommunication company in the United States. He was appointed as co-chairman of merger integration
for Qwest's merger with telephone company US West. Later he also joined the board of BearingPoint
, when they signed a deal with Qwest to through sell professional services.
resigned as Chairman and CEO from Qwest, amidst allegations of insider trading and accounting fraud. Mohebbi was thought not to be involved, but correspondence before congressional hearings in October 2002 suggested Mohebbi had created side agreements with Qwest customers that, if known by the company's accountants Arthur Anderson
, would have wiped out hundreds of millions of dollars in revenue. Seven weeks after testifying, Mohebbi had resigned.
In January 2004, Mohebbi was among a dozen former Qwest executives who had received "Wells notices," written statements from the SEC that say it intended to sue. On March 15, 2005, Nacchio, Mohebbi and six other former Qwest executives were sued by the U.S. Securities and Exchange Commission. They were accused of a $3 billion financial fraud between 1999 and 2002 and of benefiting from an inflated stock price. Separately, Mohebbi was granted immunity from prosecution with regards to insider trading, and subsequently testified against Nacchio in the former Chairman's trial on insider trading. While awaiting trial, Mohebbi held a number of non-executive positions, including as an advisor to Athena Technology Ventures.
Nacchio was convicted of 19 counts of insider trading
in Qwest stock on April 19, 2007. On July 27, 2007, Nacchio was sentenced to six years in federal prison, which after overturning his conviction, he is currently appealing the conviction, Nachio reported to the Federal Prison in Schuylkill County, Pennsylvania
on April 14, 2009 to serve his sentence.
March 31, 2011, United States Federal Judge Marcia Krieger issued a summary judgement denying all SEC's claims and ruling in Mohebbi's favor, citing that the regulatory agency had failed to produce necessary evidence to support its lawsuit.
Qwest
Qwest Communications International, Inc. was a large United States telecommunications carrier. Qwest provided local service in 14 western U.S. states: Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming.On April...
International.
A US citizen, he was born in Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
and raised in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. Mohebbi received his Bachelor of Science degree in electrical engineering with an emphasis on communications systems from the University of California, Irvine
University of California, Irvine
The University of California, Irvine , founded in 1965, is one of the ten campuses of the University of California, located in Irvine, California, USA...
, in two years when he was only 18 years old. He followed this up with a Telecommunications Engineering Certificate from the University of California, Los Angeles
University of California, Los Angeles
The University of California, Los Angeles is a public research university located in the Westwood neighborhood of Los Angeles, California, USA. It was founded in 1919 as the "Southern Branch" of the University of California and is the second oldest of the ten campuses...
. He also has an MBA (dean's scholar) from the University of California
From 1983, Mohebbi undertook a series of posts in sales and marketing with Pacific Bell
Pacific Bell
The Pacific Telephone and Telegraph Company was the name of the Bell System's telephone operations in California. It gained in size by acquiring smaller telephone companies along the Pacific coast, such as Sunset Telephone & Telegraph in 1917...
, including vice president-business markets; and later with SBC Communications. He then became President and Managing Director of British Telecom's United Kingdom Markets division, an $18 billion business unit serving 20 million consumers and 1.5 million businesses in the UK. At 34, he was the youngest BT Managing Director to lead a major division.
After 20 months Mohebbi left to join Qwest Communications International, managing Qwests line operations, including market-facing business units; network engineering and operations; information technology and staff support functions. At age 36, Mohebbi became the younger ever president of a major telecommunication company in the United States. He was appointed as co-chairman of merger integration
Merger integration
Merger integration, or post-merger integration refers to the aspect of an organizational merger that involves combining the original socio-technical systems of the merging organizations into one such newly-combined system.-Overview:...
for Qwest's merger with telephone company US West. Later he also joined the board of BearingPoint
BearingPoint
BearingPoint is an independent management and technology consulting firm. Following a post-bankruptcy management buyout in August 2009, BearingPoint has been operated by its European management team and is organized as a partnership...
, when they signed a deal with Qwest to through sell professional services.
Allegations of fraud at Qwest
In June 2002, Joseph NacchioJoseph Nacchio
Joseph P. Nacchio , was chairman of the board and chief executive officer of Qwest Communications International from 1997 to 2002. He was convicted of 19 counts of insider trading in Qwest stock on April 19, 2007. On July 27, 2007, he was sentenced to six years in federal prison...
resigned as Chairman and CEO from Qwest, amidst allegations of insider trading and accounting fraud. Mohebbi was thought not to be involved, but correspondence before congressional hearings in October 2002 suggested Mohebbi had created side agreements with Qwest customers that, if known by the company's accountants Arthur Anderson
Arthur Anderson
Arthur Anderson may refer to:*Arthur Anderson , Scottish businessman and co-founder of the Peninsular and Oriental Steam Navigation Company *Arthur E. Andersen , founder of Chicago-based accounting firm...
, would have wiped out hundreds of millions of dollars in revenue. Seven weeks after testifying, Mohebbi had resigned.
In January 2004, Mohebbi was among a dozen former Qwest executives who had received "Wells notices," written statements from the SEC that say it intended to sue. On March 15, 2005, Nacchio, Mohebbi and six other former Qwest executives were sued by the U.S. Securities and Exchange Commission. They were accused of a $3 billion financial fraud between 1999 and 2002 and of benefiting from an inflated stock price. Separately, Mohebbi was granted immunity from prosecution with regards to insider trading, and subsequently testified against Nacchio in the former Chairman's trial on insider trading. While awaiting trial, Mohebbi held a number of non-executive positions, including as an advisor to Athena Technology Ventures.
Nacchio was convicted of 19 counts of insider trading
Insider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...
in Qwest stock on April 19, 2007. On July 27, 2007, Nacchio was sentenced to six years in federal prison, which after overturning his conviction, he is currently appealing the conviction, Nachio reported to the Federal Prison in Schuylkill County, Pennsylvania
Schuylkill County, Pennsylvania
-Notable people:*Boxing heavyweight great Muhammad Ali had his training camp in Deer Lake.*Charles Justin Bailey, commanding general of the 81st Division in World War I, was born in Tamaqua on June 21, 1859....
on April 14, 2009 to serve his sentence.
March 31, 2011, United States Federal Judge Marcia Krieger issued a summary judgement denying all SEC's claims and ruling in Mohebbi's favor, citing that the regulatory agency had failed to produce necessary evidence to support its lawsuit.