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Posts Tagged ‘Qwest CEO goes to jail’

nacchioOn April 14th, Joseph Nacchio, the former CEO of Qwest Communications, began his prison sentence, after a judge sentenced him to serve six years for insider trading in 2007. After a two-year period of post conviction jockeying of appeals and delays, Nacchio began his sentence at a minimum-security prison in Minersville, Pa. In addition to serving prison time, Nacchio has been ordered to pay $71 million in fines and forfeitures.

Mind you, seven-eights of a gram of marijuana earns a ten-year, maximum-security sentence. We’re are talking Oz-like hard time.

Nacchio was convicted of 19 counts of insider trading. Prosecutors said he sold $52 million worth of stock in 2001 based on nonpublic information that Qwest faced trouble meetings its sales targets. He was acquitted on 23 other counts of insider trading.

While Nacchio used private and protected information to protect his earnings, thousands of Qwest employees and other investors saw their portfolios fall to miniscule levels.

Nacchio is but the latest in a long perp walk of CEOs making astronomical sums by using insider information to make certain that they make even more. Further, what does this say about Nacchio’s contempt for his employees – many of whom had the bulk of their retirement invested in Qwest stock?

Beyond these obvious legal challenges, the question that amazes me is “how much is enough?” What do you think?

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