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Nacchio ordered to report to prison March 23

Thu, 03/05/2009 - 7:10am
Catherine Tsai, The Associated Press

DENVER (AP) – A judge ordered former Qwest CEO Joe Nacchio to report to a federal prison in Pennsylvania on March 23 to begin serving a six-year term for insider trading.

U.S. District Judge Marcia S. Krieger on Wednesday told Nacchio to report to the minimum-security Federal Correctional Institution Schuylkill satellite camp in Minersville, Pa., by noon March 23.

A jury convicted Nacchio in 2007 of 19 counts of insider trading while acquitting him on 23 counts of the same charge.

Federal prosecutors alleged Nacchio sold $52 million worth of stock at a time when he knew Denver-based Qwest Communications International Inc. was at risk while other investors did not.

A three-judge panel of the 10th U.S. Circuit Court of Appeals overturned the conviction in a 2-1 ruling, saying the trial judge improperly barred a defense expert from testifying. The full appeals court last week disagreed and upheld Nacchio's conviction. The full court ruled 5-4 that the judge was within his discretion.

Nacchio's attorney, Maureen Mahoney, has indicated an appeal to the U.S. Supreme Court is likely. Nacchio also has challenged his sentence.

Mahoney was in a meeting Wednesday afternoon and did not immediately return messages seeking comment.

Nacchio was one of several corporate executives convicted as part of a government push to punish white-collar executives stemming from major accounting fraud at companies like Enron and Worldcom.

A former AT&T executive, Nacchio moved to Qwest after being passed over for the top job at AT&T. He resigned from Qwest in June 2002, about two months after Qwest disclosed that the Securities and Exchange Commission (SEC) had opened a formal inquiry into its accounting.

He still faces a fraud lawsuit that the SEC filed against him and other former Qwest executives. The SEC alleges they orchestrated a financial fraud that forced the telecommunications company to restate $2.2 billion of revenue.

Qwest is the primary telephone provider in 14 mostly Western states.

Voter registration records show Nacchio having homes in New Jersey and Florida.

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