Mar 21, 2007 11:43 am US/Mountain
2nd Day Of Testimony Starts In Nacchio Trial
Former Qwest CEO Charged With 42 Counts Of Insider Trading
by Rick Sallinger
DENVER (CBS4/AP) ―
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Former Qwest CEO Joe Nacchio arrived at the federal courthouse in Denver Monday morning, March 19, 2007 for the start of jury selection in his insider trading trial
CBS
Former Qwest Communications chief executive officer Joe Nacchio reaffirmed the company's rosy growth projections during a conference call with analysts in December 2001, at a time when others in the industry were lowering their forecasts.
That's according to a former investor relations director who testified Wednesday in Nacchio's federal insider trading trial.
Lee Wolfe told jurors that shares of Qwest Communications International Inc. rose $5 on the day of the call and regained another $5 a share within five trading days.
Wolfe is the first witness to testify in the trial where Nacchio is accused of illegally selling $101 million worth of stock based on nonpublic information.
Nacchio, 57, has pleaded not guilty to 42 counts of insider trading.
Qwest later restated $2.2 billion in revenue.
Defense attorney Herbert Stern told jurors Tuesday that Nacchio believed "passionately" in Qwest's publicly stated financial goals.
Nacchio resigned under pressure in 2002. He could face 10 years in prison and a $1 million fine on each count if convicted.
Denver-based Qwest is the primary phone service provider for 14 mostly Western states.
(© 2007 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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