Mar 23, 2007 7:03 am US/Mountain
Nacchio Trial Recesses For The Week
Former Qwest CEO Charged With 42 Counts Of Insider Trading
by Rick Sallinger
DENVER (AP) ―
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Wolfe claimed Nacchio hid Qwest's true financial picture from investors in 2000 and early 2001, then later disclosed that much of the revenue came from one-time sales. The stock price dropped.
CBS
The insider trading trial of former Qwest chief executive Joe Nacchio recessed for the weekend Thursday after testimony from a former company employee.
Sally Anderson said she transferred all of her savings into Qwest stock after receiving an e-mail from Nacchio painting a rosy outlook for the company.
Anderson, who is a former regional training manager, said she believed Nacchio and wanted to make more money for her future. She wasn't asked about whether she lost money.
The trial resumes Monday.
Nacchio, 57. is accused of selling $101 million worth of stock in 2001 based on inside knowledge that Qwest was at financial risk and may not meet revenue targets.
Each of the 42 counts against him carries a penalty of up to 10 years in prison and a $1 million fine.
Defense lawyers said Nacchio believed Qwest would get hundreds of millions of dollars worth of classified government contracts that made him more optimistic about the future of Qwest.
Denver-based Qwest Communications International Incorporated is the primary telephone service provider in 14 mostly Midwestern and Western states.
(© 2007 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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