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
- Tigers vs. Miners by the numbers 2:32 a.m.
- Springville vs. Dixie by the numbers 2:25 a.m.
- Wasatch vs. Juan Diego numbers 2:22 a.m.
- Mustangs vs. Tbirds by the numbers 2:02 a.m.
- Nuggets win after clock review 1:41 a.m.
- Robbery ends poorly for one suspect 1:20 a.m.
- Wednesday on TV 12:59 a.m.
- Integration is possible on TV 12:59 a.m.
- Herbert talks land issues in D.C. 12:59 a.m.
- Developer looking to buy RSL share 12:58 a.m.
- Utah group finds homes for orphans
- Pratt pleads not guilty to sex charges
- Y. tight ends talented tandem
- Jazz blow big lead, hang on
- Utes get extra motivation
- Senators want food tax restored
- Hair-pulling raises more questions
- Lobo land like home for BYU lineman
- BYU soccer incident still popular
- U. hopes to keep clicking
- House passes health care bill
265 - TCU showdown has big implications
188 - Lobo suspended
185 - Cougars crush hapless Cowboys
155 - Senators want food tax restored
152 - Utah Jazz fall apart against Kings
131 - TCU 4th in AP poll; U. 16th, Y. 22nd
119 - No 'backlash' for pioneers, gays analogy
105 - S.L. vote pending on gay protections
104 - Utes pound winless Lobos
89
Maybe someone out there can help me understand how raising the state...
Glad that he's finally going to be scouting how to beat TCU. Seems to...
Too anyone who whines about people who EARN high salaries; when was the last...
Don't know bout all that "Texas" stuff, but I'm here to tell you people, that...
Gorbachev was a brilliant leader and single most important individual in...
It buys votes from every irresponsible, lazy American in order to keep the...
My fear is the damage to the economy adding trillions of dollars to the...
I don't know, Ak can be horrible too, there are those times when he only...
Utah 24, TCU 21
You are so right about the BS of these 3 radio clowns!
And some of you out there could care less if we give up our freedoms as long...


You can be the first to comment on this story.