AUSWR
The Association of U S West Retirees
 

 

 

Nacchio victims to have their say
Officials want investors' statements at the ex-CEO's sentencing.  A retiree group welcomes the opportunity. 
By Kimberly S. Johnson, Staff Writer 
Denver Post 
Wednesday, June 27, 2007

The government is looking for victims to testify at the sentencing of former Qwest chief executive Joe Nacchio, according to court documents filed Tuesday.

Nacchio was convicted on 19 counts of insider trading in April and faces up to 10 years in prison and a $1 million fine on each count.  He also may be ordered to forfeit $52 million in ill-gotten gains at his sentencing July 27.

Victims, according to a proposed order by the U.S. attorney, would include people or companies that bought shares directly from Nacchio or shareholders that made investment decisions that may have been affected by his insider trading between April 26 and May 29, 2001.

The U.S. District Court has allowed the government to solicit victims by sending a copy of the order to the Association of U.S. West Retirees and printing notices in the major Denver daily newspapers.

"We have a lot of retirees ... (who weren't allowed to change the direction of their 401(k) investments during that time.  I know they would be interested in writing something," said Mimi Hull, president of the retirees' association.  "It is welcome news."

While Qwest is listed among Nacchio's victims, a spokeswoman for the company said Qwest does not plan to make a statement at the sentencing hearing.

Attorneys for Nacchio did not return a request for comment Tuesday.  On June 1, Nacchio attorney Mark Rufolo told the court that victims did not have the right to speak at the sentencing.

It is unclear whether the government has investors lined up to speak at the sentencing.  The U.S. attorney's office said it had no additional comment beyond the filing made in U.S. District Court in Denver.

Any investor interested in speaking must explain, by July 13, "why he or she believes he is a victim" and summarize "what he or she wishes to say at the sentencing," according to the order.  The court is expected to determine who is entitled to speak at Nacchio's sentencing.

Staff writer Kimberly S. Johnson can be reached at 303-954-1088 or kjohnson@denverpost.com.

http://www.denverpost.com/business/ci_6236599