Big day for ex-Qwest boss Nacchio
The Rocky
Published December 18, 2007 at 2:14 p.m.
Updated December 18, 2007 at 3:59 p.m.
Photo by Joe Mahoney © The Rocky
Attorneys for former Qwest CEO Joe Nacchio, including Maureen Mahoney and Herbert Stern, enter the Byron White U.S. Courthouse in Denver.
Attorneys for former Qwest CEO Joe Nacchio, Herbert Stern, left, and Maureen Mahoney enter the Byron White U.S. Courthouse in Denver to face a three-judge panel of the 10th Circuit Court of Appeals who are considering Nacchio's fate.
Former Qwest CEO Joe Nacchio's appeal of his insider-trading conviction is over. Now it's up to three judges to decide his fate.
Nacchio was not in attendance in today's hearing, which lasted about an hour in a downtown Denver courtroom.
Judge Michael McConnell peppered both sides with questions, asking Nacchio attorney Maureen Mahoney about her arguments on materiality. Judge Paul Kelly seemed deeply troubled by the exclusion of Daniel Fischel, Nacchio’s expert witness, suggesting the government was trying to “rewrite” the rules of evidence.
Mahoney and government prosecutor Stephan Oestreicher argued the case in front of the three-judge panel of the 10th Circuit Court of Appeals. They each had 15 minutes, but the hearing lasted slightly longer because of questions by Judges Jerome A. Holmes, Kelly and McConnell.
Attorneys for Nacchio said his conviction should be overturned because the case against him didn’t meet the standards set by previous court rulings. They also argued that U.S. District Judge Edward Nottingham's instructions to the jury were wrong.
A federal jury convicted Nacchio in April of 19 counts of insider trading. In July, Nottingham sentenced him to six years in prison and ordered him to forfeit $52 million and pay a $19 million fine.
The three-judge appellate panel earlier ruled Nacchio could be free pending appeal.
Nacchio's attorneys say he should be acquitted or granted a new trial. The issues at appeal are:
— The government didn't prove that Nacchio traded on material, insider information and that he knew it was wrong.
— Judge Nottingham improperly instructed the jury on what information is considered material and how to decide that Nacchio did not act in good faith.
— Defense expert Daniel Fischel was wrongly excluded from testifying on Nacchio's behalf.
— Judge Nottingham should have let Nacchio present his classified, national security defense.
— The sentence of six years in prison and the forfeiture of $52 million was wrongly calculated and should be reduced.
The appellate panel will rule at an undetermined date, but has put the case on an expedited schedule.
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December 19, 2007
11:22 a.m.
Suggest removal
wanttruth writes:
As one who was in attendance in the courtroom yesterday it was very apparent the judges had read and studied the entire transcript from the original trial. It was also apparent that the panel was well versed in the issues, the law, and the facts.
Maybe those who rail against Joe Nacchio with nothing but emotion should follow the lead of the three judge panel and read and study the facts, issues and law.
Matthew
January 12, 2008
7:45 a.m.
Suggest removal
forwhatitis writes:
Yes, and then they should continue to rail on him and revel when he is sent to prison for 6 years. Legal technicalities still won't help Nachio's lies.