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Former Qwest CEO charged with 42 counts of insider trading

[JURIST] Former Qwest CEO Joseph Nacchio [AP profile], who watched the market value of his company decline over $100 billion, has been indicted on 42 counts of insider trading for allegedly selling off more than $100 million in Qwest stock, the US attorney's office in Denver announced Tuesday. The criminal indictment follows the government's four-year-old investigation into the accounting practices of Nacchio and his fellow executives at Qwest Communications [corporate website], a Denver-based telephone service provider in 14 western states. Nacchio and other executives are also facing a class action lawsuit [JURIST report] and civil charges brought by the Securities and Exchange Commission [JURIST report], alleging Qwest improperly reported approximately $3 billion in revenue that eased its 2000 merger with US West. Nacchio, 56, is currently in custody awaiting his first court appearance expected sometime later Tuesday. He faces up to ten years in prison and a $1 million fine for each of the 42 counts, each of which concerns an allegedly illegal stock transaction. AP has more.

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