July 31, 2009 11:26 PM UTC

Nacchio Wins Resentencing

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• by: ohwilleke

Joseph Nacchio, former CEO of Qwest, has won an appeal of his sentence and of the forfeiture award against him, both for insider trading convictions, in the United States Court of Appeals for the 10th Circuit.

He is likely to see his six year sentence reduced by a couple of years, and to be allowed to keep about $7.4 million more of his assets than the trial court had allowed him to keep.  Mostly the difference flows from the trial courts failure to distinguish between gains from his crime and gains from general stock market activity, and from the fact that he wasn’t give full credit for the costs he paid to acquire and sell the stock that was traded on insider information.