Appeals Court to Review Qwest Ex-CEO's Case

A federal appeals court granted prosecutors' request to review a decision that overturned the 2007 insider trading conviction of former Qwest (Q Quote) CEO Joe Nacchio.

In April 2007, Nacchio was found guilty of 19 counts of insider trading and was handed a six-year prison sentence. The former telco chief was also fined $19 million and ordered to forfeit $52 million in proceeds from stock sales he made in 2001. Nacchio was accused of dumping stock, knowing the company's business was deteriorating and the shares would likely fall.

In March, though, a three-judge panel of the 10th U.S. Circuit Court of Appeals voted 2-1 to overturn Nacchio's conviction. The panel ordered a new trial, concluding the trial judge improperly barred testimony from defense witness Daniel Fischel, who is an expert on corporate law and markets.

However, the federal appeals court on Wednesday granted prosecutors' requests to review that decision. Oral arguments are scheduled for Sept. 24.