The second day of former Qwest chief executive officer Joe Nacchio’s insider trading trial wrapped up with the company’s former director of investor relations on the stand.
Lee Wolfe, who worked for Qwest from 1997 to June 2002, was the first witness called in the case. During testimony that lasted about 30 minutes Tuesday, Wolfe said he coined a term called the “golden rule” that was based on Nacchio’s aggressive policy toward employees and performance.
“You never do anything to make the stock price go down,” Wolfe said of Nacchio’s rule.
Wolfe’s testimony continues Wednesday at 8:45 a.m.
Earlier, the prosecution and defense gave their opening statements.
When Mr. Nacchio saw a storm coming at Qwest he sold as much stock as he could as quickly as he could, assistant U.S. attorney James Hearty said.
Stern said Nacchio was required to sell his shares as part of his compensation package, and he plans to call Qwest founder Philip Anschutz and others to prove that point.
“He went to the board of directors and said, ‘Please extend my (stock) options,'” Stern said. “They weren’t willing to do it.”
An 18-member jury featuring 11 men and 7 women was seated Tuesday morning. Twelve will serve as jurors and six are alternates.
The trial could take up to eight weeks.
