U.S. News

Qwest Ex-CEO Sentenced to 6 Years in Prison for Insider Trading


A federal judge on Friday sentenced former Qwest Communications chief executive Joe Nacchio to six years in prison for his insider trading conviction.

U.S. District Judge Edward Nottingham also ordered Nacchio to forfeit $52 million in assets he gained in illegal stock sales, imposed a maximum $19 million fine and ordered him to serve two years' probation after serving his sentence.

Nacchio was convicted in April of making $52 million in stock sales at a time when he knew Qwest faced financial risk but didn't tell investors.

Denver-based Qwest became the target of federal prosecutors and regulators in 2002 after the company restated $2.2 billion in revenue for the previous two years while Nacchio was in charge.