Wednesday, May 23, 2007

Government Seeks to Freeze Nacchio's Assets

A Denver Post story (here) discusses a recent filing by the government seeking a temporary freeze of the assets of former Qwest CEO Joseph Nacchio, who was convicted of nineteen counts of insider trading from stock sales in 2001.  According to the filing by federal prosecutors, Nacchio transferred assets in 2002 to his wife, and even considered divorcing her to shield money and property from claims in the burgeoning investigation of Qwest's accounting.  The nineteen counts of conviction -- the jury acquitted on 23 other insider trading charges -- can be the basis for a criminal asset forfeiture order for up to $52 million.  If the court orders the forfeiture, that would permit the government to seize proceeds from the trading and any substitute assets to satisfy the judgment.  Nacchio is scheduled to be sentenced on July 27, and the asset freeze, if granted, would allow federal prosecutors to begin the process of identifying assets and preventing any transfers before they can execute on the property to satisfy a forfeiture order.  (ph)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2007/05/government_seek.html

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