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E-MailThe trial of former Qwest CEO Joe Nacchio begins next Monday, March 19, in the federal district courthouse in downtown Denver. It is the last significant criminal case arising out of the corporate scandals that led to the adoption of Sarbanes-Oxley. The SEC case against Nacchio is pending. Qwest has already settled with the Commission in an agreement that included a $250 million civil penalty.
The 42-count criminal indictment (a mere six pages long) does not revolve around financial fraud but insider trading. It alleges that Nacchio sold shares worth more than $100 million while aware of material non-public information, with the indictment alleging that he was “specifically and repeatedly warned about the material, non-public financial risks facing Qwest and about Qwest’s ability to achieve its aggressive publicly stated financial targets.”
TheRacetotheBottom.org will provide daily coverage of the trial. The blog is a collaboration of students and faculty on corporate governance issues. Faculty and students will rotate through the eight-week trial with the expectation that there will be at least two posts each day the trial is in session (the trial will not be conducted on Fridays). Primary materials on the case can be found at the University of Denver Corporate Governance web site.
