Monday, March 17, 2008
The 10th Circuit Court of Appeals reversed the conviction of Joseph Nacchio, former CEO of Qwest Communications, for insider trading. Nacchio was convicted last April on 19 counts of insider trading and sentenced to six years in prison. The Court (2-1)held the district court committed error when it excluded expert testimony from Northwestern law professor and private consultant Daniel Fischel. He was expected to testify that the economic evidence was inconsistent with the government's allegation that his stock sales were made on the basis of material inside information. The Court remanded the case for a new trial before a different trial judge. The Denver Post has full coverage of this case, including a summary of Professor Fischel's proferred testimony.