|
|
|
Supreme Court won’t hear Nacchio’s case; resentencing
ahead
Monday, October 5, 2009, 9:08am
MDT | Modified: Tuesday, October 6, 2009, 9:39am The U.S. Supreme Court on Monday denied ex-Qwest CEO Joe Nacchio’s petition to have his case heard and possibly overturned by the justices. The imprisoned executive sought to reverse a
19-felony insider trading conviction handed to him by a federal
jury in
A jury found Nacchio
improperly sold
Qwest Communications International Inc.
stock in early 2001 while keeping quiet about an expected
drop-off in business for the Denver-based telecom later that
year. The former executive began serving his prison
sentence in Monday’s denial by the nation’s highest court
doesn’t completely end Nacchio’s criminal case. In July, the Denver-based 10th Circuit Court
of Appeals ordered Nacchio resentenced, which is likely to mean
a shorter prison term and smaller financial penalties for his
insider-trading conviction. Nacchio’s attorney, Maureen Mahoney,
challenged his six-year sentence, $19 million in fines and $52
million in forfeiture on the grounds that former federal court
Judge Edward Nottingham incorrectly calculated Nacchio’s gains
from the 2001 stock trades that led to his prosecution. The appellate court ruled that the sentence
penalized Nacchio for the natural appreciation of Qwest shares
at the time, not just the benefit gained from having inside
information. A smaller financial gain from the trades
would, under federal sentencing guidelines, mean fewer months in
prison for Nacchio. Nacchio’s appeal brief argued that his profit
from insider trading should have been calculated at $1.8
million, an amount that would have imprisoned him for between
nearly 3-1/2 years and just over four years. The Securities & Exchange Commission is also
pursuing a civil lawsuit against Nacchio and other former Qwest
executives. That case is expected to go to trial in early 2010.
|