Former Qwest CEO Nacchio indicted on insider trading

Joseph Nacchio, the former co-chairman and CEO at Qwest, was indicted Tuesday on 42 counts of insider trading.

Nacchio, CEO at Qwest from January 1997 to June 2002, is accused of using insider information to sell $100.8 million worth of stock between January and May 2001. Nacchio was indicted in U.S. District Court for the District Colorado.

Nacchio resigned as Qwest's chief after stockholder questions arose about his $27 million annual compensation package and additional stock options. In March, the U.S. Securities and Exchange Commission charged Nacchio and eight other former Qwest employees with fraud and other violations of the federal securities laws.

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Joseph Nacchio, the former co-chairman and CEO at Qwest, was indicted Tuesday on 42 counts of insider trading.

Nacchio, CEO at Qwest from January 1997 to June 2002, is accused of using insider information to sell $100.8 million worth of stock between January and May 2001. Nacchio was indicted in U.S. District Court for the District Colorado.

Nacchio resigned as Qwest's chief after stockholder questions arose about his $27 million annual compensation package and additional stock options. In March, the U.S. Securities and Exchange Commission charged Nacchio and eight other former Qwest employees with fraud and other violations of the federal securities laws.

In the Colorado charges, Nacchio is accused of selling stock while knowing that Qwest's publicly released financial guidance predicting the company's growth was "extremely aggressive," according to the indictment. The U.S. Attorney's Office in Denver wants Nacchio to forfeit the $100.8 million he made from the alleged insider trading.

Nacchio's lawyer wasn't immediately available for comment.

The IDG News Service is a Network World affiliate.