DENVER-
Qwest Communications stock was rising and rising several years ago when Dennis Polsfut, a Qwest network technician, moved money from his 401K to buy more shares in the company.
Polsfut, 63, said he did so after hearing encouraging words from then-CEO Joseph Nacchio. The recent retiree from Durango ended up losing about $250,000.
“Actually, I was probably wanting to retire at 59 1/2 and not have penalties. I couldn’t afford to,” said Polsfut.
On Thursday, a jury convicted Nacchio of 19 of 42 insider trading counts accusing him of selling stock in 2001 based on internal, nonpublic information that the company was at risk. Polsfut welcomed the news.
“Not that it’s really going to help the company that much,” he said. “He’ll probably have to pay for what he did, but as far as what he defrauded the company out of, that’s gone.”
Retirees and union locals have been vocal critics of Nacchio.
Mimi Hull, president of The Association of U S West Retirees, remembered when Qwest stock topped $60 a share in 2000 under Nacchio. Shares closed at $9.07 Thursday on the New York Stock Exchange. She, too, cheered the jurors’ decision.
“I’m absolutely thrilled. I wish I could’ve been in the courtroom to watch his face as they read the verdict,” she said. “I’d have been happy if he’d been found guilty on one” count.
Facility manager Suzie Miller, 57, has worked for Qwest and its predecessors for 35 years. Miller, president of Communications Workers of America Local 7777, called the verdict “a start.”
“That makes me very happy, just for the simple reason that it has impacted so many of the membership we represent. Somebody like that doesn’t have any idea what havoc they cause and what they do to families and to planned retirement,” Miller said.
Nacchio did not comment to reporters outside the courtroom after the verdict. His attorney Herbert Stern promised an appeal.
Houston securities lawyer Thomas Ajamie called it a “huge victory” for the government. “They’ve had a tremendous winning streak in these corporate crime cases, many, many convictions.
“They kept the case very simple, which is important,” he said.
Nacchio faces up to 10 years in prison and a $1 million fine on each count at a sentencing hearing scheduled for July 27.
“We’ll be waiting to see what happens in July,” Hull said.
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Associated Press Writer Jon Sarche and AP Business Writer Sandy Shore contributed to this report.
