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The Association of U S West Retirees
 

 

 

Former Qwest CEO Nacchio may be indicted next week
By The Denver Post
Friday, December 16, 2005

Prosecutors may seek an indictment next week of former Qwest chief executive Joseph Nacchio, Reuters reported late Thursday in a story based on two unnamed sources close to the matter.  The grand jury investigating Nacchio will convene next week for the final time this year, the sources told Reuters, and prosecutors are likely to seek an indictment at that time.

Reuters said prosecutors aim to indict Nacchio for personally profiting from an alleged revenue-boosting scheme at Qwest, the Denver-based phone company.  The U.S. Attorney's Office has previously said that its investigation into former Qwest officials focuses on insider-trading and securities-disclosure issues.  A representative for the office declined to comment Thursday to The Denver Post.  Nacchio has denied wrongdoing in previous statements.

Prosecutors in the summer sought and received a court-ordered freeze on related civil cases brought by regulators and shareholders.  That freeze is to last until Dec. 31.  The year-end deadline also may be important to prosecutors if they're focusing on stock trades Nacchio made in early 2001, since charges would have to be filed within five years of the alleged criminal activity.

Qwest and its former executives have faced civil and criminal legal probes for several years.  The company restated $2 billion in revenue for 2000 and 2001.  Nacchio was Qwest's CEO from 1997 to 2002.

http://www.denverpost.com/business/ci_3314138