DENVER—Prosecutors are looking for any victims of alleged insider trading by former Qwest CEO Joseph Nacchio, and they’ve proposed using a Web site, newspaper ads and letters.
Nacchio was found guilty last month of 19 counts of insider trading. Jurors concluded he sold $52 million worth of stock when he knew the company faced financial challenges and relied heavily on one-time sales to meet revenue targets.
Nacchio has said he will appeal.
Federal law requires prosecutors to try to locate anyone who might have bought the shares in question, which Nacchio sold from April 26 through May 29, 2001. They say that could be difficult, so they want the judge to approve their proposal to make reasonable attempts to reach everyone.
In addition to looking for people who may have bought Nacchio’s shares, prosecutors also want to locate shareholders whose investment decisions may have been affected by Nacchio’s conduct during that time.
All have a right to make victims’ statements at Nacchio’s sentencing, set for July 27.
Prosecutors said they consider Qwest itself a victim, but Qwest spokesman Steve Hammack said the company did not plan to make a statement.
Prosecutors also suggested they could write letters to those who have filed shareholder lawsuits and to an association of Qwest retirees for potential victim statements.
Nacchio was acquitted on the other counts of insider-trading stemming from sales in January and February 2001.
