An appeals court ordered a new, shorter sentence on for Joseph P. Nacchio, the former chief executive of Qwest Communications International, saying his six-year term for insider trading was too long. The U.S. Court of Appeals for the 10th Circuit ruled that the trial judge had overstated the amount of Nacchio’s financial gain, reported the New York Times. Nacchio was convicted in 2007 of 19 counts of insider trading. Prosecutors said he had sold $52 million in Qwest stock when the company was in financial trouble, information he concealed from the public. On Friday, a three-judge panel agreed with Nacchio’s lawyers that the $52 million figure was too high. Instead, the figure used should have been the net profit resulting from illegal insider trading. The appeals court did not say what Nacchio’s sentence or fine should be, sending those determinations back to a lower court.
Judge Reduces Sentence for Qwest Ex-CEO
A three-judge panel agreed with Nacchio’s lawyers that the $52-million figure was too high.
August 3, 2009