AUSWR
The Association of U S West Retirees
 

 

 

Feds, Nacchio at impasse on evidence
By Andy Vuong, Staff Writer
Denver Post
Thursday, February 8, 2007

The Department of Justice said in a court filing it is at an impasse with attorneys for former Qwest chief executive Joe Nacchio over how the parties will handle the introduction of certain classified information during the course of his criminal insider-trading trial.

Nacchio's attorneys have said they plan to use classified information to defend him against 42 counts of illegal insider trading.

Prosecutors said in the filing that the defense's proposed handling of certain top-secret information is not acceptable to an unnamed government agency.

"The agency believes that the defendant's proposals, if adopted, will reveal the agency;s identify," Justice Department attorneys wrote in the filing, which was made late Tuesday.

The government asked U.S. District Judge Edward Nottingham to rule on its proposed handling of the information.

A hearing is scheduled for today to resolve pending issues ahead of the trial, set to begin March 19.

In a separate filing Tuesday, Nacchio's attorneys asked Nottingham to delay the trial by at least 60 days so they can review new evidence that the government has recently turned over.

Nacchio faces 42 counts of illegal insider trading connected to his sale of $101 million in Qwest stock in early 2001.  The government alleges Nacchio sold the stock while he knew the company's finances were deteriorating.

Nacchio has pleased not guilty.  He faces up to 10 years in prison and a $1 million fine for each count.  His attorneys have said he had a rosy outlook for Qwest at the time of the stock sales because he knew the company was in line to receive large top-secret government contracts.

Staff writer Andy Vuong can be reached at 303-954-1209 or blogs.denverpost.com/bizbuzz/category/telecom.

http://www.denverpost.com/business/ci_5179893