Joe Nacchio, the shamed ex-CEO of Qwest Communications International Inc., will serve a little less time in prison on his insider trading conviction and pay far less money than originally intended for the crime.
On Thursday, a U.S. District Judge reduced Nacchios six-year sentence by two months and cut his initial forfeiture amount of $52 million by $7.4 million.
An appeals court last year said Nacchio should receive a new, lighter sentence because the trial judge overestimated amount of Nacchios net profits from selling $52 million of Qwests stock. But Judge Marcia Krieger did not agree in entirety. She further kept intact the requirement that Nacchio pay a $19 million fine.
In 2001, Nacchio sold $52 million in Qwest stock, acting on non-public information that Qwest would miss its sales forecasts that year.
Nacchio so far has served a little more than a year for the 2007 fraud conviction. He is imprisoned at the Schuylkill luxury, minimum-security facility in Pennsylvania, about 90 miles from the New Jersey home where his family resides. Recreation opportunities include weight-lifting, horseshoes, jogging and billiards. Still, Nacchio isnt living on Easy Street. He must work from 7:30 a.m. to 3:30 p.m. five days per week, doing chores such as laundry and landscaping.
Nacchio has filed a number of appeals since his 2007 conviction. He even tried to get the Supreme Court to hear his case but the justices last October turned him down without issuing any comment. That decision thrilled a number of Qwest shareholders burned by Nacchio. Retiree Kathy Ticha, for one, told the Denver Post the Supreme Courts denial was fantastic.
He doesnt deserve a new trial, she said of Nacchio. Every time I look at my 401(k), it just makes me angry.
Nacchios insider-trading spree cost Ticha about $60,000, the Denver Post reported.
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August 16 2019 @ 22:30:02 UTC