Nacchio guilty on 19 counts
By The Denver Post
Article Last Updated: 4-19-07 6:06:48 PM
A jury has found former Qwest chief executive Joe
Nacchio guilty of 19 counts of illegal insider trading.
The Jury of eight men and four women acquitted Nacchio on the
rest of the 42 counts filed against him.
Nacchio's attorney, Herbert Stern, immediately issued a
statement saying Nacchio would appeal the conviction.
As the verdict was read, the women on the jury cried as did
Nacchio's wife and son. Nacchio faces a maximum penalty of 10
years in prison and a $1 million fine for each count of which he
was found guilty.
"To anyone who's ever made a call from Qwest's service territory
... the term 'convicted felon Joe Nacchio' has a very nice ring
to it," U.S. attorney Troy Eid said in a press conference
outside the courtroom.
"The jury has spoken. Make no mistake, my friend. This is an
overwhelming determination of guilt. Nineteen counts. Each
count carries up to 10 years in federal prison."
During Nacchio's trial, federal prosecutors had argued that
Nacchio dumped $100.8 million in Qwest stock during the first
five months of 2001 while he had inside information that the
company's finances were deteriorating. They argued that he was
repeatedly warned, beginning in late 2000, that Qwest would not
make its publicly announced 2001 revenue targets but didn't
Nacchio's defense attorneys maintained that the warnings he
received were related to Qwest's internal targets and not the
publicly stated numbers. They said Nacchio had good reason to
sell because some options were set to expire, and the Qwest
board and Nacchio's own financial adviser had urged him to sell
the shares. They also maintained that Nacchio was exceptionally
confident in the company's prospects.