Joe Nacchio arrived Monday night in Denver, where the former Qwest chief executive could face indictment today.
Nacchio stepped off United Airlines Flight 1229 from Newark, N.J., at 6:55 p.m. with his attorney Herbert Stern at Denver International Airport. There they met Nacchio’s local legal counsel, John Richilano.
When asked why he’s in town, Nacchio replied, “I’m going to be skiing.”
Nacchio added, “Denver has always been a nice place. I enjoy coming to Denver. What can I say?”
Federal prosecutors could file an indictment against Nacchio as early as today on charges including insider trading, according to sources close to the case.
Neither Nacchio nor his attorneys would comment.
“At the appropriate time I will give you a comment, but not now,” Stern said at the airport. “Please leave us alone.”
Sources said Monday that there had been disagreement within the Justice Department over whether to make the announcement of a potential indictment in Denver or in Washington. Announcements may be made in both locations.
Jeff Dorschner, spokesman for the U.S. Attorney’s Office in Denver, which is heading the investigation, declined to comment on the case Monday.
If indicted, the 56-year-old Nacchio could surrender today to authorities and appear before a federal judge in Denver to be advised of any charges and have bail set.
Nacchio arrived at DIA Monday night carrying a tan shoulder bag. He wore a sweater and slacks under a long black overcoat and at one point put on round sunglasses.
A reporter and photographer awaited Nacchio as he stepped off the plane, and TV camera crews surrounded him as he entered the terminal. Nacchio and Stern appeared surprised to encounter the media at the airport.
When asked why he flew commercially rather than on a private plane, Nacchio said, “I always flew commercial.”
As Qwest CEO from 1997 to 2002, Nacchio regularly commuted by air from his home in New Jersey to Qwest headquarters in Denver.
Nacchio and his attorneys left the parking garage Monday night in a black Porsche sport utility vehicle.
Hazel Floyd, an official with the regional office of the Association of US West Retirees, said she saw Nacchio’s arrival at DIA on television Monday evening. She said she was one of many retirees who lost money as the company’s stock plummeted.
Qwest merged with Baby Bell US West in 2000, and Nacchio quickly cut 11,000 jobs. Qwest later was forced to restate $2.5 billion in revenue. Nacchio was forced out in June 2002.
“We (the retirees) all feel he should be called to stand up for what he did when he was (CEO) of the company,” Floyd said.
The government said previously that its criminal investigation of former Qwest executives focuses on insider trading and securities disclosure issues from 2000 to 2002. A grand jury in Denver has been hearing testimony for months.
Nacchio representatives have said that he did nothing wrong at Qwest and will vigorously defend himself against any charges.
If convicted on insider- trading charges, Nacchio could face up to 10 years in prison, a $1 million fine and restitution of ill-gotten gains for each count.
The federal Securities and Exchange Commission sued Nacchio and other former Qwest executives in March, accusing them of profiting from a scheme to fraudulently boost revenues.
Regulators have said Nacchio sold Qwest shares for a profit of $176.5 million from 1999 to 2001.
Prosecutors, who face a five- year statute of limitations to file insider-trading charges, have focused at least in part on Nacchio’s stock sales during April and May 2001.
Staff writers Beth Potter and Kimberly Johnson contributed to this report.
Staff writer Greg Griffin can be reached at 303-820-1241 or ggriffin@denverpost.com.
