August 1, 2009
Ex-Qwest executive to get new prison term
The federal court in Denver has ruled Joseph Nacchio, a former Qwest Communications International Inc. chief executive, should get a new prison sentence.
The Wall Street Journal reported Saturday the 10th U.S. Circuit Court of Appeals found Nacchio, 60, was improperly sentenced when given six years in prison for a 2007 insider trading conviction.
The appellate court, which will leave the re-sentencing of Nacchio to a lower federal court, also ruled Nacchio was incorrectly sentenced to forfeit $52 million because of his conviction.
The $52 million was the estimated gross proceeds the former Qwest executive earned through his illegal stock activities, The Wall Street Journal said.
The federal court ruled Friday the estimated figure was incorrectly calculated, meaning a new forfeiture will be decided by a lower court.
Nacchio was convicted of selling stocks based on insider information that Qwest was facing financial troubles.
Legal experts told the Journal the former executive will like now receive a shorter prison sentence.