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Federal judge denies new trial for ex-Qwest CEO Nacchio

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

[JURIST] A federal judge on Tuesday denied the request by former Qwest Communications CEO Joseph Nacchio for a new trial on insider trading charges. Nacchio had requested a new trial on the basis that the company's CFO, a key witness in the trial, had changed her testimony, but Judge Marcia Krieger of the US District Court for the District of Colorado found that the change in testimony was not substantial enough to alter the conviction. Nacchio was convicted in 2007 on 19 counts of insider trading for selling $52 million worth of stock in 2001 with knowledge that Qwest could miss its sales targets. In October, the US Supreme Court declined to review Nacchio's conviction without comment, ending his lengthy appeals process, which stretched over two years. In August, the US Court of Appeals for the Tenth Circuit ruled that Nacchio was incorrectly sentenced and remanded the case for resentencing. In April, Nacchio reported to the minimum security prison camp at FCI Schuylkill. Nacchio was initially indicted on 42 counts in 2005. He and other former Qwest executives still face civil fraud charges brought by the US Securities and Exchange Commission on allegations that Qwest improperly reported approximately $3 billion in revenue that eased its 2000 merger with US West.

Full post as published by JURIST - The Paper Chase on January 13, 2010 (boomark / email).