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Prosecutors argue there's evidence to maintain Nacchio conviction 
By Sandy Shore, AP Business Writer
Denver Post
Saturday, November 10, 2007

Federal prosecutors in papers filed today asked an appellate court to uphold the $52 million insider-trading conviction of former Qwest chief Joe Nacchio, disputing his claim that the evidence was insufficient to find him guilty.

Nacchio had appealed his April conviction on 19 counts, arguing that prosecutors based their case on insufficient evidence and the judge committed key errors.

But prosecutors said the trial judge properly refused to allow Nacchio to introduce secret business Qwest Communications International Inc. did with the government as evidence in his defense.

"A reasonable jury could conclude that Nacchio dumped his stock on the basis of the dire reports he had just received;  the information was material and Nacchio knew as much," Assistant U.S. Attorney Stephan Oestreicher Jr. wrote in a brief.

Nacchio was sentenced to six months in prison


The jury in his trial concluded Nacchio sold stock when he knew the Denver-based telecommunications company was at financial risk but didn't tell investors.  The jury acquitted Nacchio of 23 counts.

Nacchio is free on bail while his appeal is pending.  The 10th U.S. Circuit Court of Appeals has scheduled oral arguments for Dec. 18.