DENVER—Four groups have filed friend-of-the-court briefs supporting former Qwest CEO Joseph Nacchio’s appeal to the Supreme Court of his insider trading conviction.
The National Association of Criminal Defense Lawyers and the New York Council of Defense Lawyers filed a joint brief and the Washington Legal Foundation and the U.S. Chamber of Commerce each filed their own briefs.
The national defense lawyers group and the Washington Legal Foundation previously did the same in the 10th U.S. Circuit Court of Appeals after Nacchio appealed his conviction to that court in 2007.
The legal foundation’s work includes fighting what it says is a trend of prosecutors pressing criminal charges for business activity that wasn’t previously considered blameworthy or that could be handled with administrative or civil remedies instead.
“We did not think the conduct alleged in this case was at all blameworthy, let alone worthy of prosecution,” the foundation’s chief counsel, Richard Samp, said Wednesday. He said the foundation learned of the case through Nacchio’s attorneys.
Prosecutors said Nacchio sold $52 million worth of stock in 2001 while knowing Denver-based Qwest Communications International Inc. would have trouble meeting its sales goals.
Nacchio began serving a six-year sentence on April 14. He contends jury instructions about what internal information had to be disclosed publicly were improper. He also contends the trial judge improperly barred testimony from an expert who could have explained Nacchio’s trading patterns.
The government has until May 22 to file a response.
Nacchio sought to stay out of prison during his Supreme Court appeal. A federal judge and a three-judge panel of the 10th Circuit rejected that request, saying it was unlikely the Supreme Court would grant his petition.
Qwest provides telecommunications services and is the primary local landline phone service provider in 14 mostly western states.
