Ex-Qwest CEO Gets 6 Years

Nacchio's insider-trading penalty includes paying $71M
By Sam Biddle,  Newser Staff
Posted Jul 27, 2007 5:43 PM CDT

(Newser) – Qwest's former CEO was sentenced to 6 years in prison today for engaging in insider trading while the company's stock plummeted. Joseph Nacchio committed "crimes of overarching greed,'' a federal judge in Denver said as he fined him $19 million in addition to the $52 million he must forfeit, then denied Nacchio's request for both probation and bail.

A jury convicted Nacchio, 58, on 19 counts of insider trading in a scandal that nearly brought down what was then the country's fourth-largest telecom. He was charged with selling $52 million worth of Qwest shares in just over a month in 2001 after he learned of impending revenue shortfalls. He declined comment as he left the courthouse. (Read more Qwest stories.)

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