Former Qwest CEO Must Give Up $52 Million for Insider Trading
Friday, July 27th, 2007Joe Nacchio, the former CEO of Qwest Communications, was ordered by a federal judge today to forfeit $52 million that he gained from stock sales.
In April 2007, Nacchio was convicted of insider trading. He reportedly profited millions while withholding information from investors that the telecommunications company was at serious financial risk. Thousands of investors lost money when Quest’s stock dropped dramtically from about $60 a share in 2000 to $2 a share in 2002.
In addition to being ordered by a federal judge to hand over $52 million in 15 days, Nacchio has also been sentenced to six years in prison. He will also have to pay a $19 million fine, the maximum penalty.
Nacchio’s request for bail was denied pending an appeal.
Sources: http://cbs2.com/topstories/topstories_story_208113304.html
http://news.yahoo.com/s/ap/20070727/ap_on_bi_ge/qwest_nacchio_sentencing



