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WHO: Joseph Nacchio, Qwest Communications International Inc. CEO from 1997 to 2002.
THE ALLEGATIONS: Illegally selling about $101 million worth stock while he had internal information about financial risks at the Denver-based telephone company. He is charged with 42 counts of insider trading for transactions ranging from $191,000 to $13.6 million each.
BACKGROUND: Prosecutors say Qwest participated in a massive fraud by falsely reporting revenue. Qwest has erased about $2.2 billion in revenue from 2000 and 2001.
RESPONSE: Nacchio pleaded not guilty and remains free on bail. He claims he knew Qwest was in the running for secret, lucrative contracts from government agencies that made him optimistic about the company’s future.
