April 19, 2007
Another high-profile sentencing is now in the works after, as detailed here, another high-profile white-collar conviction:
Joseph Nacchio, who built Qwest Communications International Inc. into the fourth-largest U.S. phone company and presided over a $100 billion drop in market value, was convicted of insider trading. A federal jury in Denver today found Nacchio, Qwest's former chief executive officer, guilty of selling stock based on private warnings from top lieutenants that the company would miss revenue targets.
Prosecutors said Nacchio made $101 million by illegally trading on inside information he withheld from investors. "If you don't tell, you can't sell,'' Assistant U.S. Attorney Colleen Conry told jurors in closing arguments. The jury found Nacchio guilty on 19 counts of insider trading for stock trades totaling $52 million. He was found not guilty of 23 counts relating to earlier trades totaling $49 million.
The conviction of Nacchio, 57, caps a U.S. crackdown on corporate fraud that began when Enron Corp. collapsed in 2001. Hundreds of executives have been convicted, including three ex- CEOs, Enron's Jeffrey Skilling, Bernard Ebbers of WorldCom Inc. and John Rigas, founder of Adelphia Communications Corp.
Nacchio left the courthouse with his wife Anne without commenting. The panel of eight men and four women convicted Nacchio after six days of deliberations. He faces up to 10 years in prison and a $1 million fine on each count. U.S. District Judge Edward Nottingham set Nacchio's sentencing date for July 27.
Any sentencing predictions, dear readers?
April 19, 2007 at 07:34 PM | Permalink
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Having worked at Mountain Bell, USwest,Qwest for 30 years and watching from a low position on the ladder it was good that the
jury found Nacchio guilty. He took a good company and ran it into the ground. When he first came to the company he had a meeting with all the employees at the Pepsi Center, here in Demver. I'll never forget
when he walked on stage and said that "Qwest is now the largest dot. com company in the world." My mouth dropped. It was a time
when the dot.coms were dropping like flys! In additions to that remark and others, plus what you could see happening physically to
USwest/Qwest one could tell that there was something rotten in Denmark.
By the way, he was asked to leave AT&T. He was looking for work when Anshutz hired him. The reason being was that Anshutz had buried
fiber along his railroad right-away and needed a way to connect to a Central Office/switch. They built one at the business center south of Denver. Its cost was to great and it made better sense to buy a
telco and then divest it of its outside plant. Which is exactly what they did. Except they ran into a thing called the Public Utility Commision and could not rid themselves of the outside plant! It was all to use their fiber and a telco's switches to gain advantage (money) in the now new fiber world. Nacchio is a braggadocio bartender.
He should stay behind the bars. Now maybe he will. Although a different kind of bar!!!!
Posted by: Mike Lambdin | Apr 20, 2007 9:04:04 AM
You should bear in mind that it is not against the law to be incompetent.
Posted by: Marc Shepherd | Apr 20, 2007 10:06:43 AM