Nacchio Goes Down for Insider Trading

Federal jury convicts former Qwest CEO for dumping company stock
By Peter Fearon,  Newser Staff
Posted Apr 20, 2007 6:50 AM CDT
Nacchio with his family and lawyers   (Associated Press)
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(Newser) – Joseph Nacchio, former CEO of Internet-bubble-blowing telecom Qwest, was found guilty of 19 counts of insider trading by a federal jury in Denver yesterday. Nacchio dumped more than $100 million in Qwest stock in 2001, before the stock imploded over questionable accounting practices. The jury acquitted on 23 other counts.

The conviction shows the government's improved technique in prosecuting executive wrongdoing, the Journal notes. U.S. Attorney Troy Eid crowed after the verdict: "For anyone who has ever made a call in Qwest territory, the term 'convicted felon Joe Nacchio' has a nice ring to it." The former CEO could get life, but is expected to draw something lighter.