From Deseret News archives:
Qwest, Nacchio settle legal fee dispute
Qwest, which had been required under its bylaws to pick up the legal tab, will pay bills incurred through the day Nacchio was sentenced and a portion of lead defense attorney Herbert Stern's bills during his appeal, but it will not pay for Nacchio's appellate attorneys.
In exchange, Nacchio will give Qwest a $6.5 million letter of credit to secure advances Qwest pays, company spokesman Bob Toevs said.
Nacchio was sentenced to six years in prison and $71 million in fines and forfeitures Friday after he was convicted in April of 19 counts of insider trading for selling stock when he knew Qwest faced financial risk but concealed the problems from investors.
Nacchio, 58, was denied bail during his appeal and is expected to begin his prison term within two months.
The agreement announced Monday stemmed from a lawsuit Nacchio filed in May, asking a federal judge to order Qwest to continue paying legal fees during the appeal process.
"Any disputes concerning these matters have been postponed and reserved for the conclusion of the appeal in the criminal matter," Stern said in an interview.
Qwest will continue paying legal fees for the civil action, Toevs said.
The criminal and civil cases arose from a federal investigation into a multibillion-dollar accounting scandal that rocked Qwest, a primary telephone service provider in 14 mostly Western states, including Utah.
The Securities and Exchange Commission has said the company falsely reported fiber-optic network capacity sales as recurring instead of one-time revenue between April 1999 and March 2002. They said the practice allowed Qwest to improperly report about $3 billion in revenue and helped it acquire former Baby Bell US WEST Inc.
Comments
- Photo: Crafting nutcrackers 7:20 p.m.
- S.L. budget discussions continue 6:49 p.m.
- Man pleads guilty in assault 6:49 p.m.
- $25K reward offered in slaying 6:21 p.m.
- Step-father arrested in spanking 6:16 p.m.
- S.L. Dems appoint exec. director 6:15 p.m.
- Animal-rights protest issues resolved 6:12 p.m.
- Ex-legislators call for ethics reform 6:06 p.m.
- S.L. will light up for the holidays 6:00 p.m.
- Getting serious about seat belts 5:55 p.m.
- Utah, BYU are top choices for bowls
- BYU would like friendlier rivalry
- Protests against Phoenix LDS temple
- Best prep football games of 2009
- KSL: Prostitution in Utah County
- Man trapped in own body for 23 yrs
- Kirilenko climbing blocks list
- Woman describes stabbing, killing
- Boys basketball rankings
- 'Dancing' will fill out finale
- BYU would like friendlier rivalry
224 - Glenn Beck to enter politics?
222 - RSL wins MLS Cup on penalty kicks
202 - Palin plans tour stop in Utah
179 - Protests against Phoenix LDS temple
178 - Bronco, Kyle rubber match
137 - Palin's book shows she's unqualified
136 - BYU records with win
133 - Letters: Rushing to judge Palin
116 - Officer cleared in Cardall Taser case
104
Sarah Palin a "seed needed to grow"... are you kidding me? I guess...
I remember watching a program where they took scans and photos of the shroud...
I have just the solution. The Free Market! Those who think that the sky is...
"which contains information that could be used for impeachment purposes,"...
Against Oklahoma were his own fault. Three count em three. He is a poor...
I am a true Utah County Republican/Libertarian. Any tax is too much for me....
How the heck can you incarcerate a man for growing the very plant the US...
Just as Scott McClellan's sudden realization of the Bush administrations...
The only way to know which team is better is for them to play each other.
Jason is the best thing to happen to Washington D.C. Thanks for the...


You can be the first to comment on this story.