The Association of U S West Retirees



Nacchio Taps Appellate Specialist Mahoney
WSJ telecom reporter Dionne Searcey filed this dispatch with the Law Blog
The Wall Street Journal
Thursday, May 24, 2007

To appeal his insider-trading conviction, former Qwest Communications chief Joseph Nacchio has hired a big gun: Latham & Watkins’s Maureen Mahoney. 

Mahoney, who works out of Latham’s D.C. office, is no stranger to high-profile appeals.  In 2005, she scored a victory for accounting giant Arthur Anderson when the Court overturned its criminal conviction, and successfully represented the University of Michigan Law School in its 2003 defense of its affirmative-action policy.  She is a former clerk for Chief Justice William Rehnquist and once served as United States Deputy Solicitor General.  In some circles, her name has been kicked around as a possible Supreme Court nominee.

She did not return a call for comment late today.

Last month a jury in federal court in Denver convicted Nacchio of 19 counts of insider trading.  On appeal, an issue will likely be the judge’s exclusion of some classified evidence Nacchio wanted to use to show that he was convinced secret lucrative government contracts were coming his way.  His lawyers thought the material could help offset the government’s theory that he was profiting from insider information when he sold hundreds of millions of dollars worth of stock.  Another issue will likely involve jury instructions on the definition of materiality.

New Jersey lawyer Herb Stern was Nacchio’s lead attorney during the trial.  He is still involved in the case.

Sentencing for Nacchio is set for July 27 in Denver.  He could face life in prison, but could receive a lesser sentence depending on how the judge interprets the sentencing guidelines in his case.  Each guilty count carries at least a $1 million fine, and he is subject to $52 million in forfeitures, the gross proceeds of the sales for which he was found guilty.


In a DOJ case full of holes, Mahoney should enjoy her work here.
Comment by Solid choice - May 23, 2007 at 8:02 pm

The DOJ has moved to freeze and seize Nacchio’s assets.  How’s he going to pay for an appeal, whether the underlying arguments are strong or otherwise?
Comment by KPMG, The Sequel? - May 24, 2007 at 12:13 am