AUSWR
The Association of U S West Retirees
 

 

 

Nacchio settles with SEC, faces no extra fine

 

Denver Business Journal

September 4, 2010

 

Convicted former Qwest CEO Joe Nacchio, serving a nearly six-year prison term for insider trading at the Denver telecom, has reached a settlement agreement with the U.S. Securities and Exchange Commission over a related civil lawsuit against him, subject to a judge's approval.

 Bloomberg News reported late Friday that a settlement deal has been submitted by the SEC to U.S. District Judge Marcia Krieger in Denver for her approval.

The agreement calls for no civil penalty against Nacchio "in light of the sanctions ordered in the related criminal case," and does not call for Nacchio to admit guilt. It does bar Nacchio from acting again as an executive of a public company.

 Nacchio, 61, was convicted in 2007 of profiting from inside information when he sold $52 million of his shares in Qwest Communications International Inc. (NYSE: Q). Other investors and retirees later lost millions as the stock plummeted.

 Following a small adjustment to his sentence after a series of appeals, Nacchio is now serving a 70 month term in federal prison in Minersville, Pa. The length of his sentence is still under appeal.

He also was fined $19 million and paid forfeiture of $44.6 million.

Under the SEC settlement, Nacchio waives his right to appeal the $19 million fine.

The SEC case is U.S. v. Nacchio, 1:05-cv-00480, U.S. District Court, District of Colorado (Denver).