Ex Qwest CEO May Face 6 Years Imprisonment
The white-collar crime committed by former Qwest chief that has drawn an SEC settlement September 2010 can now probably send the accused behind bars for nearly six years.
The federal court in Denver has given its final verdict to the settlement of SEC which bars Joseph Nacchio from assuming an executive post in any public company and penalizes him with $19 million in fines and $44.6 million in disgorgement and prejudgment interest.
The settlement, however, does not impose any civil penalty against Nacchio “in light of the sanctions ordered in the related criminal case,” which enraged some investors.
Nacchio could possibly face a six-year imprisonment, or 70 months, in federal prison in Minersville, Pa following an insider trading which he allegedly committed in 2007 according to the SEC’s lawsuit.
At issue was the $52 million worth of shares Nacchio sold from Qwest Communications International Inc., a telecommunications company based in Denver, which drained millions from investors as the stock went down.
The verdict against the former Qwest chief is still under appeals from the defendant’s camp.