New Trial For Ex-Quest CEO Nacchio?
Nacchio allegedly sold $52 million of Qwest stock in 2001, after being warned by Qwest company insiders that Qwest couldn't reach its 2001 financial goals.
Nacchio was found guilty on 19 counts of insider trading charges in April of 2007. Judge Edward Nottingham of the U. S. District Court for the District of Colorado sentenced Nacchio to six years in prison, and ordered Nacchio to forfeit the $52 million from Qwest stock sales, and pay a $19 million fine.
However, in March of 2008, a panel of three 10th Circuit judges voted to overturn Nacchio's conviction and ordered a new trial for Nacchio before a different judge, Reuters reported.
The saga continues. Six of the nine judges on the 10th Circuit heard oral arguments in the case. Nacchio's attorney, Maureen Mahoney of Latham and Watkins, argued that Nacchio's trial was unfair, because Nottingham had excluded financial expert Daniel Fischel from testifying for the defense.
Nacchio, who has been released on $2 million bail, didn't attend the appeals proceeding, which lasted under an hour.