Nov 14, 2006 11:05 am US/Mountain
Nacchio Loses Bid For Records Release In Case
DENVER (AP) ―
Former
Qwest Chief Executive Officer
Joe Nacchio on Monday lost his latest bid to force the government to turn over grand jury records to support his allegation of prosecutorial misconduct or for his records in case of an appeal.
Judge Edward Nottingham previously rejected Nacchio's request that the 42 counts of insider trading be dismissed because federal prosecutors improperly influenced a grand jury before it decided in December to indict him. Nottingham disagreed with Nacchio's attorneys' arguments that jury instructions were flawed.
Nacchio's attorneys on Oct. 19 then filed a motion asking Nottingham to reconsider that the grand jury instructions be turned over. Nottingham on Monday rejected that request, saying that Nacchio failed to support his arguments to force the government to produce the records and was asking the court to change federal rules to reflect his "desired policy."
A U.S. attorney spokesman declined to comment. Nacchio's attorneys have said they will not comment on the case outside the courtroom.
Nacchio's attorneys have previously asked for the dismissal of the criminal case, saying the indictment was too vague to support the charges.
Nacchio is charged with selling $100 million of Qwest stock in the first five months of 2001 based on information about the company's finances that had not been made public.
His attorneys argued that Qwest policy prohibited employees from selling stock based while in possession of nonpublic information, while federal law requires proof that such information was used in making trades.
In a separate civil fraud case, Nacchio and six other former Qwest executives are accused of orchestrating a financial fraud between April 1999 and March 2002 that allowed Qwest to improperly report approximately $3 billion in revenue. The company later restated the revenue.
The Securities and Exchange Commission wants repayment and civil penalties with amounts to be determined at trial. One defendant has reached a settlement with regulators.
Denver-based Qwest is the primary phone service provider in 14 mostly Western states.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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