May 21, 2007 7:20 AM
Feds: freeze Joe's dough
Prosecutors say convicted insider trader Joe Nacchio transferred at least $133 million and a home to his wife's name and even flirted with divorce to protect his assets, reports Sara Burnett.
According to a motion filed late Friday in federal court, Nacchio became "very paranoid" after investors started filing civil lawsuits against him and after the Securities and Exchange Commission subpoenaed information about Qwest's revenues.The motion seeks to freeze the $52 million Nacchio grossed from illegal stock sales and reveals details of financial transactions not presented during his five-week trial that ended in his conviction for insider trading.
Prosecutors argue in the motion that the $52 million Nacchio grossed from the illegal stock sales belongs to the government, even if the CEO moved the money into accounts in only his wife's name. The transfers were void under New Jersey law because, among other reasons, he retained control of the assets after the transfer, and he moved the assets after being sued, they said.
Nacchio's former financial adviser, David Weinstein wrote a memo to himself that there seemed to be "a certain element of fraud" involved in getting divorced for strictly financial reasons. He also said Nacchio was considering cashing out his 401(k) and an IRA - paying taxes and penalties - so he could put that money in his wife's name as well.
"Joe basically wants to have no assets in his name, and he can then claim he is bankrupt," Weinstein wrote after an "emergency meeting" with Nacchio in October 2002.
May 21, 2007
8:11 AM
Rich Hulten writes:
I said it then and I'll say it again. When Nacchio showed up on the scene my first impression was that the little piss ant was here to steal. How could a frustrated second stringer from AT&T manage a real telephone company? Now he was at a joint that resold internet connectivity. A real jump in social standing. My thinking may be a bit biased since I was born and raised in Chicago and used to the ways of crooks. The rubes in Colorado couldn't recognize a thief if he was rummaging around in their underwear. Actually they were afraid to say anything about their new boss. In 2002 I retired with my 401(k) stocks at $20. I think Nacchio should be hung from a light pole like Mussolini! The antics during his trial went well beyond good taste and right into disingenuous B.S. We saw all this defense stuff during the O.J. trial and it still continues as a tool for lawyers. This says a lot for what is taught at law school.
May 21, 2007
8:43 AM
Tree writes:
I'll take a sample from the Boomers music blog and apply it here as I think those posters nailed it. Nachio is a Boomer. The Boomers are all about me me me and me. They want that license to steal. And sitting on top where you live above the law, what do we say about 'absolute power' ? Bush/Cheney & the gang do it, Nachio did it and there are thousands more. I'm actually glad I'm not sitting on top as I don't want that $100M test. I might fail. Depending on your greed factor, failing to some is excelling for others.
May 21, 2007
9:28 AM
question writes:
Who's worse. Joe Nacchio or Ward Churchill?
May 21, 2007
9:40 AM
gr8fuldude writes:
I would have to say Naccio is worse that Churchill since his actions had a negative impact on others...Churchill is merely annoying, but he didn't trash anyone's 401K.
May 21, 2007
9:47 AM
Rich Hulten writes:
Tree and Question.....
When i was a kid I was taught the strength of a company was reflected in its stock price. That has been replaced with speculation, which is another form of rubbing a crystal ball. No one seems to be honest and all are going for a ride on some fantasy cruise. I just hope the next generation has the moral strength to run this society. God knows, us greedy, self-centered, B.S. artists have screwed up. Perhaps in raising our kids too?
Let's not be too harsh on the whole generation. Just the ones that have grown from being picked on while in school to those that now have positions of power. For a good read try, The Peter Principle. This is the blue print for our generation. And I thought it was a joke!
May 21, 2007
10:57 AM
Tree writes:
Rich-
8dude will tell you his favorite quote from the movie Wall Street. , A fool and his money........
I don't know what to tell you besides what you already know. We live in a reach and grab society and when the lights go out, everyone reaches and grabs what they can. Throw reason right out the window with family values and marriage. Pun, Nacchio and his divorse scheme. How about the Sunday paper and the telemarketing scams bilking seniors for everything they have and some. And corporate America is profiting off selling their list of bait. That's Less than Zero if I can steal the book name. However, that's not fiction, that's real life-today.
You can try, but I don't think you can stop that train Rich. I work in the mortgage industry and it's wide open to profit at mom and pa's ignorance. 3 yr. Arm with a low % teaser for the next 3 years. Sure, you can buy one all day long, and in 3 years and buy another one and pay another set of closing cost. And again. And again. It's not illegal, just another way to seperate you from your checkbook if you make a bad decision. Just like going to Vegas. Make all the bad decisions you want, might cost you $.
May 21, 2007
11:29 AM
Rich hulten writes:
Tree...
The premise of the book is that sooner or later everyone will reach their level of incompetence. Many times this is accelerated by promotion. Thanks for offering that your in the mortgage business.Yes, many times, when shaking the hand of a real estate guy I've felt the other hand feeling for my wallet. After years of that, I realized that salesmen are hired because of this trait.
When I was a kid my mother offered to send me to Northwestern to be a lawyer. (She worked for a very good law firm.) I wrestled with that for some time until I deferred based on ethics. Believe it or not. You see, to make a good living (a hell of a lot of money) you start lawyering by being a prosecuting attorney. When you have learned how the game is played you then go over to the other side and become a defense lawyer. I wasn't about to sell my soul for a buck. I preferred to work for a living the old fashioned, honest way. Which I did as a telephoneman. You may have met me through the years. I was all over the Denver Metro area since 1971. I always gave the customer what they were entitled to, which was good service irregardless of my own comfort. Since then my knees, hips and ankles are shot. Ah, but my generation worked for a living as they had learned from their parents. The guys (and women) I worked with were the best that I knew. Some were "characters" and other good friends. But, we all had the same goal. Looking toward the future....I haven't a clue.
May 21, 2007
11:37 AM
NW writes:
Somebody need to put one of his testicles on a golf tee and hit a low hard "stinger".
Then give his money to the Qwest employees he screwed and lock his ass up for good.
This dude is a SCUM-BAG.
May 21, 2007
11:58 AM
Rich Hulten writes:
HW...
I loved your comment(s). RE: The Golf Club Penalty Stroke...why not another coming from the opposite direction? Two tees, two balls? Double your pleasure, double your fun.
Giving the bucks back to the employees sounds alright except the government has put claim on it. Would you really expect otherwise? Social justice isn't learned on the prosecution side. Remember my previous post?
The government is just as guilty of greed as the rest. Read about those poor souls around SE Colorado. Now that is a screwing to come!
May 21, 2007
3:38 PM
Wise King Solomon for President writes:
What's worse than Nacchio OR Churchill?
If the had offspring together. Like on Conan O'Brien, that "If They Mated" thing.
Jowardo Nacchurchio=Antichrist
Freeze his assets? Freeze his TESTICLES, then hit them with a hammer. Let he who is without pension crush the first stone....
May 21, 2007
4:37 PM
Anonymous writes:
Freeze assets? That's too easy--it's high time the Feds/State/Whoever declares "Emminent Domain" over ALL Joey and wifey's assets. Let's have none of this "hide everything you can get away with" crap.
The Nacchios will make out just fine--especially since wifey cuts and styles hair so well! And I'll bet Joey can market her skills after he's released from paying off (oops, meant completing) his cushy prison debt to society's paid up. Why, they'll be gazillionaires again in NO TIME--hows abouta thata!
May 21, 2007
4:41 PM
jce-NM writes:
More Truth came out today than in the 4 weeks of the (just past) trial. That about sums up the worth of our current "legal" process? I still think we should hang him by "whatever" and use him as a pinata. That way a lot more of us could get in a swing at him... And TREE, IMHO, it ain't about speculation, market shares, and taking your chances, for me, J. Nacchio, lied, cheated, and stole. HE BETRAYED MY COMPANY, and me. He negated 30 years of my stewardship, at my level, of my business.
May 21, 2007
5:54 PM
Rich Hulten writes:
It is great fun making light of his situation. Joe Nacchio is a ruined man. At best he'll be a poster child for corporate what-not-to-do. The bottom side is whatever morality he tried to teach his kids will be swept away. Unless, of course, they are as cold blooded as he. I just hope that they realize how he stole the dreams and hopes of many employees. The outside employees that worked in any weather to restore telephone service. It was a challenge, but we were young and stupid. I'd like to remind you all that it was the telephone company that was up and running before Public Service during floods and blizzards. Irregardless of the silliness of Lilly Tomlin and Johnny Carson. So, after that little monolog, I'll say again that we gave our all for the tradition of the company and the service to our customers. I'm not too keen about the delayed rewards we all looked forward to. But it was a rush and we were a family. I like to think of Nacchio as another turd floating down life's sewer. And I thank WKSFP for the funniest thing I've read in YEARS! "Let he who is without pension crush the first stone. " May I have your permission to use this line in the future. It is too good to forget.
May 22, 2007
10:59 AM
Joe's Real Problem writes:
Knowing Joe as I do, he will suffer a great deal in prison without his toupee. His vanity will indeed suffer.
May 22, 2007
5:19 PM
Anonymous writes:
"Joe Nacchio is a ruined man"
Yeah right! The son of a bitch can retire on more than most of us will ever see in a lifetime of hard work. Hopefully his wife will run off with the pool boy and take all of their assests with her.