Nacchio's defense team foresees 'mob scene'
The Denver Business Journal
Friday, June 28, 2007
Attorneys for former Qwest Communications International Inc. CEO
Joseph Nacchio accused government prosecutors of trying to drum
up a "mob scene" at the convicted executive's July 27 sentencing
hearing under the guise of gathering victims' stories for
The assertion is made in a scathing June 28 filing to the
federal court in Denver.
Nacchio's defense team filed papers, stating its opposition to a
prosecution suggestion for finding victims affected by the
fallout from the stock trades that got Nacchio convicted of
A federal jury convicted Nacchio in April on 19 counts of
insider trading. He was originally indicted on 42 criminal
counts, all related to inflated revenue reports the company gave
between 1999 and 2002.
A jury found Nacchio made $52 million in stock trades knowing
the sales figures being told to analysts and the public were
false. Qwest, after Nacchio's resignation, restated $2.5
billion in earnings for the period.
The U.S. Attorney's Office prosecutors proposed June 26 to
notify participants in a civil lawsuit against Nacchio, Qwest
retirees and others that they can submit "victim impact"
statements and tell how Nacchio's crimes affected them.
Judges use such statements to help determine a sentence from
within the range outlined by law.
Prosecutors want to make the public call because, they said, it
otherwise would be impossible to find people affected by the
stock's loss of value.
Nacchio' s defense team argued the prosecutors' approach to
finding victims would be inappropriate, and that the charges for
which Nacchio was convicted did not have identifiable "victims."
The move would simply draw out people angry at Nacchio, and
that, the defense asserted, appears to be part of the
"The government seeks by its actions to incite the many
residents of this community that harbor ill will toward Mr.
Nacchio, people who blame him for much more than was decided by
the jury, to come forward to demand that strong punishment be
meted out by this Court," the defense lawyers wrote.