Qwest's Ex-chief Nacchio Loses Appeal

Former Qwest chief Joe Nacchio loses his appeal as a federal court voted to uphold a conviction on insider trading charges.
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Former

Qwest

(Q)

chief Joe Nacchio lost his appeal as a federal court voted to uphold a conviction on insider trading charges.

The 10th U.S. Circuit Court of Appeals in Denver voted 5 to 4 to deny an effort to overturn a 19-count insider trading conviction of Nacchio in 2007. Nacchio was sentenced to six years in prison but appealed the ruling because the court prevented testimony from a defense witness.

Nacchio was found guilty of dumping his Qwest stock, while knowing but not disclosing that the business was deteriorating. The former telco executive was fined $19 million and ordered to forfeit $52 million in proceeds from stock sales he made in 2001.

Nacchio is free on bail and likely to take his appeal to the U.S. Supreme Court.