AUSWR
The Association of U S West Retirees
 

 

 

Qwest to decide later on Nacchio fees.
By Andy Vuong
Denver Post
Thursday, May 14, 2009

Qwest general counsel Rich Baer said today that the company would wait until after former Qwest chief executive Joe Nacchio has exhausted all of his appeals before deciding whether or how to recover the money it has advanced for Nacchio’s legal fees.

Nacchio is serving a six-year prison sentence at a federal prison camp in Pennsylvania for illegal insider trading.

He has filed a petition for the Supreme Court to review his case.  He has also asked a district court judge to grant him a new trial because of newly discovered evidence.

Qwest has not said how much it has spent on Nacchio’s legal fees.  Baer said the company doesn’t consider the fees advanced to Nacchio thus far as “material” -- or large enough to require public disclosure under accounting rules and regulations. Experts have estimated that Nacchio’s legal bills could be as high as $75 million, based on tabs rung up by other high-profile white-collar criminals such as former Enron CEO Jeff Skilling.

Baer’s comments came in response to a question from a shareholder at Qwest’s annual stockholders meeting.