Former Qwest CEO Found Guilty of Insider Trading

Telecom News Editorials Reports Glossary

8:45 pm on April 20, 2007 | Category: Business, Corporate, Law

Former Qwest Communications CEO, Joseph Nacchio, was found guilty of insider trading this week in a much-publicized federal jury trial.

Naccho was charged with selling $52 million in Qwest stock, over a period of several months in early 2001, during which time he learned that the company’s published sales forecasts were unachievable.

After six days of deliberations, the jury found the 57-year-old Nacchio guilty of 19 out of the 42 charges against him, including misleading shareholders in a company conference call. This verdict could result in a multi-million dollar fine, as well as up to 10 years in prison for the former Chief Executive.

Nacchio was released on $2 million bail, pending sentencing, which is set to take place on July 27. He did not comment on the verdict, but his lawyers are reportedly planning an appeal.