AUSWR
The Association of U S West Retirees
 

 

 

Court Says Nacchio Prison Term Improper
By Dionne Searcey
The Wall Street Journal
Friday, July 31, 2009

A federal appellate court has ruled Joseph Nacchio, former chief executive of Qwest Communications International Inc., was improperly sentenced after his 2007 conviction for insider trading.

The 10th Circuit Court of Appeals in Denver also ruled Friday that Mr. Nacchio, a star CEO during the telecom boom at the start of the decade, was improperly ordered to forfeit $52 million, the proceeds he earned from allegedly inappropriate stock sales.

A new sentencing hearing will be ordered for Mr. Nacchio and legal experts said his term would likely be shortened and his forfeiture amount reduced.  In April, Mr. Nacchio began serving his sentence at Schuylkill minimum security camp in Minersville, Pa.

A lawyer for Mr. Nacchio declined comment.

Mr. Nacchio has appealed his conviction to the U.S. Supreme Court.  Recently the court sought his entire case file and will likely decide whether to take up his case later this fall.

Write to Dionne Searcey at dionne.searcey@wsj.com

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