Former Qwest CEO Faces Insider Trading Charges

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1:31 am on December 21, 2005 | Category: Business

The ex-CEO of Qwest Communications, Joseph Nacchio has been indicted on insider trading charges yesterday, after a three-year federal investigation.

The 56-year-old former executive surrendered himself into federal custody late on Monday, but was released on a $2 million bond after his court appearance. He is accused of selling over $100 million of Qwest stock in 2001, after viewing unfavorable financial statements that hadn’t yet been released by the company.

Nacchio has entered a not guilty plea, after repeated claims that he never engaged in insider trading.

“I’m finally glad to know what I’m shooting for, and I’m looking forward to telling my side of the story,” Nacchio told reporters in Denver yesterday.

He won’t have an easy time proving this time, however, as the prosecution has plenty of evidence, including the testimony of former CFO, Robin Szeliga, as well as two other top-level Qwest executives.