DENVER—Federal prosecutors say $44 million forfeited by former Qwest Communications International Inc.’s CEO Joe Nacchio is being returned to victims.
The U.S. Department of Justice said Thursday the money will be distributed to 112,210 people in proportion to their losses from shares they bought during an alleged securities fraud scheme.
Prosecutors say that between 1999 and 2002, Nacchio misled investors about Qwest’s revenues and financial condition and then sold millions of dollars in Qwest stock before its share value plummeted.
Nacchio was convicted of insider trading in 2007. He is serving five years and 10 months in prison. In addition to the forfeiture, Nacchio was ordered to pay a $19 million fine to a fund for crime victims.
Nacchio isn’t scheduled to be released until May 2014.
