Ex-Qwest Chief Nacchio Settles SEC's Lawsuit Without Paying Extra Penalty

Joseph Nacchio, the former chief of Qwest Communications International Inc. convicted of insider trading, settled a related civil lawsuit brought by the U.S. Securities and Exchange Commission.

The SEC filed a request yesterday asking U.S. District Judge Marcia Krieger in Denver to approve the settlement. The agreement would bar Nacchio from acting as an officer or director of a public company.

Nacchio, 61, of Rumson, New Jersey, was convicted in 2007 of illegally selling $52 million of stock in Denver-based Qwest in 2001 based on inside information. In the criminal case, Krieger upheld a $19 million fine -- the maximum Nacchio faced - - and approved forfeiture of $44.6 million, a figure agreed to by Nacchio and the government.

The SEC cited the fine and penalty, saying a civil penalty isn’t being imposed “in light of the sanctions ordered in the related criminal case,” according to the court filing.

Nacchio has appealed a 70-month prison sentence that reduced his original term by two months. An appeals court has not ruled on that request.

The case is U.S. v. Nacchio, 1:05-cv-00480, U.S. District Court, District of Colorado (Denver).

To contact the reporter on this story: Joel Rosenblatt in Denver at jrosenblatt@bloomberg.net.

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