Guilty Verdict Reversed, Ex-Qwest CEO Nacchio Gets New Trial - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Guilty Verdict Reversed, Ex-Qwest CEO Nacchio Gets New Trial

The appeals court said the trial judge had improperly prevented the introduction of expert testimony and classified information as part of Nacchio's defense.

Ex-Qwest CEO Joseph Nacchio, facing a prison term and millions in fines, will get a new trial after an appellate court in Colorado on Monday reversed his guilty verdict on insider trading.

The judges in the 10th Circuit Court of Appeals said trial judge Edward Nottingham had improperly prevented the introduction of expert testimony and classified information that Nacchio's attorneys tried to present as part of his defense.

Nacchio lost a lengthy jury trial last April and was convicted on 19 counts of insider trading. Prosecutors charged Nacchio sold his stock after he had been informed by other Qwest executives that the company's finances were falling in the early part of the decade. The prosecutors maintained that Nacchio continued to reassure investors while Qwest stock was collapsing.

Nacchio had argued that he had been blocked during the trial from presenting evidence that he had kept Qwest from participating in work for the National Security Agency, work he considered illegal. Judge Nottingham also effectively kept law professor Daniel Fischel from testifying on the former executive's behalf.

Nacchio declined to take the stand on his own behalf. Initially charged with selling $52 million in Qwest stock, Nacchio had been ordered to forfeit the $52 million. His attorneys also argued that Nacchio had been distracted during the period he was selling Qwest stock because his son had tried to commit suicide.

The appellate panel ruled 2 to 1 to reverse the earlier decision.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Augmented Analytics Drives Next Wave of AI, Machine Learning, BI
Jessica Davis, Senior Editor, Enterprise Apps,  3/19/2020
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
White Papers
Register for InformationWeek Newsletters
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Flash Poll