Ex-Qwest CEO Gets 6 Years In Prison

Joe Nacchio Also Fined $19M And Ordered To Forfeit $52M In Assets Gained In Illegal Stock Sales

(AP)  A federal judge on Friday sentenced former Qwest Communications chief executive Joe Nacchio to six years in prison for his insider trading conviction.

U.S. District Judge Edward Nottingham also ordered Nacchio to forfeit $52 million in assets he gained in illegal stock sales, imposed a maximum $19 million fine and ordered him to serve two years' probation after serving his sentence.

Nacchio had faced a maximum of seven years, three months in prison.

Attorneys were arguing whether Nacchio should be granted bail while he appeals his conviction.

Nacchio was convicted in April of making $52 million in stock sales at a time when he knew Qwest faced financial risk but didn't tell investors.

"The crimes the defendant has been found guilty of are crimes of overarching greed," Nottingham said.

Nacchio declined to testify at his sentencing hearing.

Nottingham earlier denied a defense motion for an acquittal and for a new trial, dismissing claims that jurors were swayed by damaging pretrial publicity.

"This was an extraordinary jury," he said. "In this court's view, the verdict takes a rational view of the evidence."

Nacchio is among the latest in a string of former top-level executives to be convicted in corporate fraud scandals targeted by a government task force established in 2002.

Thousands of investors lost money when Qwest Communications International Inc.'s stock price plummeted from more than $60 a share in 2000 to just $2 a share in 2002. The scandal forced Qwest, a primary telephone service provider in 14 mostly Western states, to restate $2.2 billion in revenue.

The investors could take solace in a Securities and Exchange Commission request for court permission to begin distributing $267 million to investors who purchased Qwest stock between July 27, 1999, and July 28, 2002.

[lochlan-2009]

Imagine the people who sold short on that stock just before the information was released by the authorities (not saying the FBI would do that sort of thing);). Six years for devaluing $billions of stock while profiting immensely, anyone a little curious about American justice? Read the $50million buyout Big Dig story. It's no wonder they're doing it, nobody's stopping them.

[johnshaft4]

Get real...the most time he will serve will be over come Jan. 2009 when "Dear Leader" pardons him for his $10 Million "contribution" (pay off) to the Bush Crime Family Syndicate. Look for Ebbers, Skilling etc., alo to be pardoned for their pay offs to the $500 Million Bush Presidential "Library Fund." Pure unaccountable slush fund.

[brianbwb-2009]

No bail, lock him down. With the money he has stolen, he can and will leave the country and buy a king's life in some place where most of us can only dream of a two week vacation...

[speakinup]

I'd be happy about the 6 years FeelFree, if only he had to forfiet all he has towards the stockholders that lost money the day he sold.

And, once again - a bi-partisian agreement on the press, FeelFree1. One of the very few things you and I agree upon.

I want to hear FACTS, not opinions from our news media. Most of us can draw our own opinions. Their opinions are only self serving. And, the WORST part, is they paint their opinions in such a way to make them appear as though they are stating facts. ALL NEWS MEDIA DOES THIS ! FOX INCLUDED...

So, did anyone follow the airline crash in Brazil lately ? Notice how they couldn't get the number of dead straight ? If they can't get something this objective right, how can they EVER have a hope of getting ANYTHING subjective right?

[dartania1]

Yes, Qwest, Enron, WorldCom, Waste Management, Sunbeam, Baptist Foundation of Arizona, Charles Keating's Lincoln Savings and Loan and others ... there is a common thread here and it is Andersen, the auditor of all of these entities. The zealous greed of Andersen sent them out of business. It is difficult not to associate here.

[adian1-2009]

I wonder why only 6 years in jail plus 2 on probation? Oh, oh! The maximum was 7 and 3 months. Smart House and Senate where there are also plenty of crooks. They were thinking about themselves in case a miracle comes around and they are made to pay for their "deeds".

[maggg1]

feelfree,

the feeling is mutual... :)

[feelfree1]

maggg1,

Re: "Of course not, I just love a good debate and a great mind. thanks"

You are making me blush;-)

Take care.

[maggg1]

Feelfree,

Of course not, I just love a good debate and a great mind. thanks

[shanev137]

See what happens Joe when you don't play ball with the NSA?