U.S. District Judge Edward Nottingham today said he may have to hold at least one more closed-door hearing to review classified information in the criminal insider trading case against former Qwest chief executive Joe Nacchio.
Nottingham also set a Feb. 6 deadline for the prosecution and defense to file status reports on where they are in terms of determining what classified information will be introduced during the trial.
Nottingham said he will hold the closed-door hearing on an “expedited process” to ensure that the case will begin on schedule. It’s slated to start March 19 and could last up to 7 and a half weeks.
“This case is going to be tried on March 19 folks,” Nottingham said during a 45-minute conference.
There have already been four closed-door hearings in the case. For the most part, the closed hearings have been to review classified information that Nacchio’s attorneys plan to use to defend him against 42 counts of illegal insider trading connected to his sale of $101 million in Qwest stock in early 2001. Nacchio faces up to 10 years in prison and a $1 million fine for each count.
Prosecutors allege he knew the company’s finances were faltering. Nacchio, who left the company in mid-2002, has denied any wrongdoing.
Nacchio’s attorneys have said they want to use classified information to argue that Nacchio had a rosy outlook for Qwest in early 2001 because he knew the company was in line to receive large government contracts.
Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com.
