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Nacchio ordered to report to minimum security prison

2:57 PM, Mar 4, 2009   |    comments
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An order for Nacchio to surrender was handed down by a judge on Wednesday. He must report to FCI Schuylkill, Satellite Camp in Minersville, Penn. by noon on March 23.

The order says Nacchio must travel at his own expense.

Nacchio must report to the minimum security prison in north-central Schuylkill County after a federal appeals court reinstated his insider trading conviction last week.

The split decision lifted the stay that had kept him from beginning his six-year prison term.

A jury convicted Nacchio in 2007 of 19 counts of insider trading while acquitting him on 23 counts of the same charge.

Federal prosecutors alleged Nacchio sold $52 million worth of stock at a time when he knew Denver-based Qwest Communications International Inc. was at risk while other investors did not.

Nacchio's attorneys may still appeal last week's decision to the U.S. Supreme Court or ask the appellate court for a lighter sentence.

If there are no appeals, Nacchio must also forfeit the $52 million he gained from the stock sale and pay $19 million in fines.

A three-judge panel on the 10th U.S. Circuit Court of Appeals had overturned Nacchio's conviction last year, saying his trial judge had improperly barred testimony from a defense witness.

However last week, the full court decided in a 5-4 ruling that the trial court was "well within its discretion" to keep the witness off the stand.

Nacchio still faces a fraud lawsuit filed by Securities and Exchange Commission filed against him and other former Qwest executives. The SEC alleges they orchestrated a financial fraud that forced the telecommunications company to restate $2.2 billion of revenue.

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