Feb 10, 2006 10:28 pm US/Mountain
Nacchio: Indictment Should Be Dismissed
DENVER (AP) ―
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Joe Nacchio asked a judge to dismiss the 42 charges of insider trading against him.
CBS4
Former Qwest CEO Joseph Nacchio on Friday asked a judge to dismiss the 42 charges of insider trading against him, saying prosecutors haven't alleged he had information that would have prevented him from legally selling stock.
In a motion filed in U.S. District Court, Nacchio says the government's case is insufficient because it is alleging he was told the company "might not" meet its goals, not that Qwest "would not" or "could not" make its numbers or that Nacchio "knew" this was the case.
"As a matter of law, this is insufficient to charge the crime of insider trading," according to the motion.
Jeff Dorschner, spokesman for the U.S. Attorney's Office, which is prosecuting the case, said he had no comment other than the government will file a timely response with the court.
Nacchio was indicted in December for allegedly selling $101 million worth of stock in the first five months of 2001 after privately learning the company might not meet its financial goals. He has pleaded not guilty.
In addition, the government has conceded that Qwest's financial reporting during the relevant period was fully accurate and complete, the motion states. The company met its financial goals from Jan. 2, 2001, through May 29, 2001, the period during which Nacchio sold his stock.
The court has previously ruled that a failure to disclose financial risks is not a concealment of material information, according to the motion.
Nacchio also said he accurately disclosed all the information required by law.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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