A rash of corporate fraud scandals is sweeping North America. From
Conrad Black to
Lou Pearlman, insider trading is rampant. The latest greedy titan? Joe Nacchio, former CEO of telecommunications company
Qwest. He has been sentenced to six years in prison for 19 counts of insider trading.
"The crimes the defendant has been found guilty of are crimes of overarching greed," said U.S. District Court Judge Edward Nottingham.
According to the indictment, Nacchio sold Qwest stock after he was warned the company was underperforming and would not meet financial targets. Employee pensions and 401K investments were affected.
In addition to his six years in prison, Nachhio will serve two years on probation. And the financial costs are enormous: He faces a $19 million fine, and has been ordered to forfeit the $52 million in assets he gained in illegal stock sales.
Nottingham denied Nacchio's request to be granted bail while he appeals his conviction. He ordered Nacchio to report to authorities within 15 days, after a prison is chosen for him.
Nachhio still faces a
Security and Exchange Commission investigation.