DENVER—Federal prosecutors asked an appeals court Friday to uphold the $52 million insider-trading conviction of former Qwest chief Joe Nacchio, disputing his claim that the evidence was insufficient to find him guilty.
Prosecutors also said the trial judge acted properly when he refused to allow Nacchio to introduce a defense based on secret business that Qwest Communications International Inc. did with the government.
“A reasonable jury could conclude that Nacchio dumped his stock on the basis of the dire reports he had just received; the information was material and Nacchio knew as much,” Assistant U.S. Attorney Stephan Oestreicher Jr. wrote in a brief.
Nacchio was convicted of 19 counts of insider trading in April after a jury concluded he sold stock when he knew the Denver-based telecommunications company was at financial risk, but didn’t tell investors. The jury acquitted Nacchio of 23 counts.
Nacchio argued in his appeal that the prosecution’s case was based on insufficient evidence and that the judge committed key errors.
Nacchio has been sentenced to six years in prison but remains free on bail pending the outcome of his appeal. The 10th U.S. Circuit Court of Appeals has scheduled oral arguments for Dec. 18.
