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Nacchio accused of hiding stock

Jurors at the insider dealing trial of Joe Nacchio heard the prosecution allege Wednesday, that he tried to hide $90m (£45.8m) of Qwest assets by transferring stock into his wife’s accounts.

The trial, now in its second week, saw prosecutor Kevin Traskas ask Judge Edward Nottingham for permission to introduce evidence to support his claim. Traskas argued that the transfers took place in February 2002.

The defence argued that Nacchio did not sell any shares of Qwest between 2001 and 2002. Nachio’s defence lawyer, Herbert Stern, filed a motion at the court Wednesday which said that the alleged payments were made outside the period Nachio’s is accused of insider trading and, therefore, irrelevant.

After a days’ arguments, Judge Nottingham agreed to hear the testimony of a financial analyst the prosecution believe will prove the transfers are significant.

Nacchio has acknowledged exercising stock options in the first five months of 2001 which earned $101m. It is these transactions which are being scrutinised by the court.

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