Joseph Nacchio, who oversaw a $100 billion drop in the market value of Qwest Communications International Inc. as chief executive officer, has been indicted, the U.S. attorney in Denver said.
A federal grand jury in Denver indicted Nacchio, 56, said U.S. Attorney William Leone in a statement today that did not specify the charges. Leone will announce the indictment at a press conference at noon local time, the statement said. The Securities and Exchange Commission sued Nacchio in March, claiming he orchestrated a $3 billion fraud from 1999 to 2002 at Qwest, the No. 4 U.S. telephone company.
Prosecutors have spent more than three years building the case against Nacchio, who transformed Qwest into an investor favorite during the Internet boom. Qwest’s board ousted him in June 2002, five-and-a-half years after he took over, amid government probes of accounting fraud at the company.