lets Nacchio ruling stand
Prosecutors won't challenge a court order expected to lower the
ex-CEO's prison term.
By Andy Vuong
Tuesday, August 18, 2009
The U.S. Department of Justice will not appeal a decision that
ordered a new sentence for former Qwest chief executive Joe
Nacchio, an agency spokeswoman said Monday.
Last month, a federal appeals panel ruled that the trial judge
miscalculated when he sentenced Nacchio to a six-year prison
term for illegal insider trading and ordered him to forfeit $52
million in ill-gotten gains.
The Justice Department could have asked the panel to reconsider
or sought a review from the full 10th Circuit Court. It also
could have appealed to the U.S. Supreme Court.
"The department has decided not to seek a review of that
decision," said spokeswoman Laura Sweeney.
The move means the sentencing portion of the case will return to
U.S. District Court in
Denver. Trial Judge Edward
Nottingham resigned last year, and the Nacchio case has since
been reassigned to Judge Marcia Krieger.
Nacchio entered a federal prison camp in
He was convicted in 2007 on 19 counts of insider trading
connected to his sale of $52 million in Qwest stock.
Prosecutors say he sold shares in 2001 based on inside
information that company finances were deteriorating.
In its July 31 ruling, the appeals panel strongly suggested that Nottingham's sentence was excessive because he
miscalculated how much Nacchio gained financially. In
white-collar cases such as Nacchio's, prison terms are tied to
the amount of money determined to have been lost or gained from
Nacchio's attorneys had argued that he should have received a
sentence ranging from three years and five months to four years
and three months. They also contended Nacchio should have
been ordered to forfeit no more than $44.6 million.
Nacchio has asked the Supreme Court to review his conviction,
and a decision is expected in the fall.
Andy Vuong: 303-954-1209 or