The Association of U S West Retirees



Raising the Curtain on the Nacchio Trial
Posted by Peter Lattman
The Wall Street Journal
Monday, February 26, 2007

Rocky Mountain News gave us a good old fashioned curtain raiser on the upcoming criminal trial of former Qwest CEO Joseph Nacchio, scheduled to begin on March 19.

Nacchio is fighting insider trading charges that he sold $101 million in stock in early 2001 while in possession of confidential information about the Denver-based telecom company’s dim prospects.  He is represented by former federal judge and ex-U.S. Attorney Herbert Stern of Roseland, N.J.-based Stern & Kilcullen (click
here and here for more on Stern).  Stern has maintained that his client believed Qwest’s finances and prospects were strong and he was merely diversifying.

The News focuses its story on the prosecution team, which is being led by Cliff Stricklin, who took over the case last August after a stint on the Enron Task Force.  (Click
here and here for prior posts on Stricklin and Leone.)  Another key member of the feds’ team: Colleen Conry, who failed to win a conviction against HealthSouth’s Scrushy but recently secured convictions of four Enterasys execs in New Hampshire.

Interesting tidbit on Stricklin:  In November he traveled to Malawi for two weeks where he helped the DOJ with anti-corruption training there.  “Being an attorney is what I do but not who I am,” Stricklin, the son of a Baptist minister in Dallas, told the News.  “I think all of us could use our talents and abilities to help other people.”

Stricklin & Co. hope to do better than the last Qwest criminal trial — in 2004, the feds failed to win a single conviction in the conspiracy and fraud trial of four former Qwest executives.  And though since then they’ve won four guilty pleas, none has served more than probation or house arrest, says the article.