Nacchio Taps Appellate Specialist Mahoney
WSJ telecom reporter Dionne Searcey filed this dispatch with the
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
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
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