From Deseret News archives:
Ex-Qwest v.p. is sentenced; only Nacchio's case remains
Marc Weisberg, a former senior vice president for the telecommunications company, was sentenced Friday after pleading guilty to wire fraud for improper stock deals with other companies. U.S. District Judge Robert Blackburn also ordered Weisberg to serve 60 days of home detention and two years of probation.
The case leaves Weisberg "forever branded ignominiously as a convicted felon," the judge said. "In the corporate world, this is tantamount to Hawthorne's scarlet letter."
Under his plea agreement, Weisberg is required to cooperate with prosecutors in the case against Nacchio, who has denied any wrongdoing. Nacchio could go to trial in the fall on 42 counts of insider trading.
Prosecutors have said Weisberg's case was not directly connected to an accounting scandal that forced Qwest to restate billions in revenue.
U.S. Attorney Bill Leone declined comment on the importance of Weisberg's cooperation in the case against Nacchio, who is accused of dumping more than $101 million in Qwest stock while publicly touting the company's financial position. Leone has said with Nacchio's indictment, the Qwest investigation is virtually complete.
Weisberg, who oversaw investments, mergers and acquisitions for Qwest, was indicted in February 2005 on eight counts of wire fraud and three counts of money laundering.
Prosecutors accused him of earning $2.9 million for himself, family members and friends between 1999 and 2001 by demanding that vendors offer them stock in return for doing business with the Denver-based telecommunications company, the local phone service provider in 14 mostly Western and Midwestern states.
In a brief statement before the sentence was handed down, Weisberg thanked his family for their support and said the case has taught him about fairness, loyalty and love.
"The last few years have been a learning experience. Though the tuition has been steep, the lessons have been quite valuable," he said.
He ended with the Hebrew word "dayenu," which means "enough."
Outside the courtroom, Leone said he was satisfied with the sentence because it "sends a deterrent message to the investment community and to companies going public."
"Qwest had a conflict-of-interest policy that was badly abused. Although Mr. Weisberg's conduct, the government believes, was worse than others', his punishment reflects that," Leone said.
