Former Qwest CEO convicted of insider trading

[JURIST] Former Qwest Communications [corporate website] CEO Joseph Nacchio [JURIST news archive] was convicted Thursday by a federal jury on 19 of 42 counts of insider trading. Nacchio illegally sold 1.33 million shares valued at $52 million dollars in conjunction with the Denver-based telephone service provider's accounting scandal between April 26 and May 29, 2001. Nacchio faces a maximum sentence for each count of up to 10 years in prison and a $1 million fine. The federal jury acquitted Nacchio of 23 counts of insider trading originating before April 2001. Nacchio's sentencing is slated for July 27, and he is currently free on $2 million bail.

Nacchio and other former Qwest executives still face a class action lawsuit [JURIST report] and civil charges brought by the Securities and Exchange Commission [JURIST report]. Another former Qwest employee, ex-vice president Marc Weisberg, pleaded guilty to wire fraud [JURIST report] in December 2005 and helped prosecutors build their case against Nacchio. AP has more.

 

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