Ex-Qwest CEO Nacchio, prosecutors outline arguments on new sentence on insider trading

Nacchio attorneys outline sentence recommendations

DENVER — Former Qwest CEO Joseph Nacchio is pushing to reduce his prison sentence on insider trading convictions by almost half and slash his fine even more.

Nacchio was sentenced in 2007 to serve six years in prison, pay $19 million in fines and forfeit $52 million, but a federal appeals court ruled the sentence was too harsh because a judge miscalculated Nacchio’s net gains from stock sales allegedly based on insider information. Another judge will reconsider his sentence later this month.

In court filings Friday, Nacchio’s lawyers argue for a sentence of three years and five months in prison and a $3.6 million fine. But prosecutors say a stiffer sentence, including a $19 million fine and a forfeiture of $44 million, are appropriate.