Nacchio wise to woes
Prosecutors allege in a court filing that the Qwest ex-CEO
knew of fiscal ills as early as January 2000.
By Greg Griffin, Staff Writer
Tuesday, April 11, 2006
Former Qwest chief
executive Joe Nacchio knew by January 2000 that the company
was missing its operating-revenue targets and filling the
gap with one-time network-capacity sales, prosecutors said
Also, in August 2000, just weeks after Qwest completed its
merger with US West, Nacchio was advised of "numerous risks
with respect to Qwest's 2001 financial targets," the
government said in a filing in federal court.
The U.S. attorney's office charged Nacchio in December with
42 criminal counts of insider trading. Prosecutors allege
Nacchio sold $100.8 million in Qwest shares from January to
May 2001 when he knew, but did not disclose to the public,
that Qwest's finances were deteriorating rapidly.
A trial could be scheduled as early as this fall.
Nacchio has denied the criminal allegations and asked the
judge to dismiss the charges. He is free on $2 million
A call late Monday to Nacchio's attorney, John Richilano,
was not immediately returned.
Nacchio left Qwest under pressure from the board of
directors in June 2002 and was replaced by current CEO
Richard Notebaert. The company has restated $2.5 billion in
revenues for 2000 and 2001.
In earlier filings, the government has said Nacchio knew by
August 2000 that Qwest was at risk of missing its financial
targets. The new date indicating when he allegedly knew of
Qwest's revenue problems came in a document filed by the
government in response to a request by U.S. District Judge
Edward Nottingham for more details on the allegations.
Staff writer Greg
Griffin can be reached at 303-820-1241 or