Prosecutors argue there's evidence to maintain Nacchio
By Sandy Shore, AP Business Writer
Saturday, November 10, 2007
Federal prosecutors in papers filed today asked an appellate
court to uphold the $52 million insider-trading conviction of
former Qwest chief Joe Nacchio, disputing his claim that the
evidence was insufficient to find him guilty.
Nacchio had appealed his April conviction on 19 counts, arguing
that prosecutors based their case on insufficient evidence and
the judge committed key errors.
But prosecutors said the trial judge properly refused to allow
Nacchio to introduce secret business Qwest Communications
International Inc. did with the government as evidence in his
"A reasonable jury could conclude that Nacchio dumped his stock
on the basis of the dire reports he had just received; the
information was material and Nacchio knew as much," Assistant
U.S. Attorney Stephan Oestreicher Jr. wrote in a brief.
Nacchio was sentenced to six months in prison
The jury in his trial concluded Nacchio sold stock when he knew
the Denver-based telecommunications company was at financial
risk but didn't tell investors. The jury acquitted Nacchio
of 23 counts.
Nacchio is free on bail while his appeal is pending. The
10th U.S. Circuit Court of Appeals has scheduled oral arguments
for Dec. 18.