Slew of Civil Actions Awaits Nacchio
Joe Nacchio, the former Qwest CEO who recently was convicted of 19 criminal insider-trading charges, still faces civil fraud charges from the Securities and Exchange Commission, securities fraud class action lawsuits by Qwest investors, and other smaller civil actions. The civil fraud suits extend a long period of time, from 1999 to 2002. The recent ruling against Nacchio likely will have an impact on the case. "Joe Nacchio's conviction would make the SEC case against him considerably easier, given the higher burden of proof on the criminal side," said Diana Powell, a former SEC lawyer.
The SEC says that Nacchio planned a $3 billion financial fraud between 1999 and 2002 and asks for $216 million in "ill-gotten" gains. Federal officials want to prevent Nacchio from becoming an officer in a publicly held company in the future. Defense attorneys argue that "Nacchio can't be held responsible for all these things."
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