DENVER-
Federal prosecutors allege former Qwest CEO Joe Nacchio was so concerned about protecting his assets as Qwest’s accounting came under scrutiny that he put some assets in his wife’s name and considered divorcing her for financial reasons.
The allegations are included in documents prosecutors filed late Friday in U.S. District Court to try to freeze about $52 million of Nacchio’s assets.
Nacchio was convicted last month on 19 counts of insider trading for transactions that prosecutors said resulted in $52 million in gross proceeds. He is to be sentenced July 27.
In late February 2002 to early March 2002, after Nacchio had been named in a class-action lawsuit alleging insider trading, Nacchio transferred at least $133 million from his name to that of his wife, prosecutors said in their latest motion.
Nacchio’s financial adviser David Weinstein noted on Oct. 18, 2002, that Nacchio was getting “paranoid,” the court document said. “In fact, Joe is exploring the possibility of a divorce for financial reasons,” Weinstein wrote, according to prosecutors’ motion.
Later, Weinstein wrote, “Joe then was thinking about buying a $20 million house in Florida. Florida real estate is not subject to the claims of creditors…,” according to the filing.
