Joe Nacchio, the former chairman of Qwest Communications convicted of illegal insider trading, is suing the federal government seeking a refund of almost $18 million in taxes he paid on gains from illegal stock sales.
In a lawsuit filed Tuesday in the U.S. Court of Federal Claims in Washington, Nacchio said he and his wife are owed a refund because court- ordered disgorgement of those gains wiped out their tax liability.
Nacchio, 62, received a 70-month prison sentence after his 2007 conviction for selling stock in Denver-based Qwest in 2001 based on inside information. Nacchio made more than $44 million on the sale, according to court papers.
The suit claims that “$44,632,464.38 was included in plaintiffs’ gross income for tax year 2007 because it appeared that the plaintiffs had an unrestricted right” to the money. “As such, plaintiffs paid $17,999,030.00 in federal income tax.” In the criminal case, Nacchio was ordered to pay a $19 million fine and forfeit $44.6 million.
Bloomberg News Service
