

Joseph Nacchio - teawithcarl
https://en.wikipedia.org/wiki/Joseph_Nacchio

======
zainny
Some context, taken from the other story currently on the front page [1]:

"We know what happened in the case of QWest before 9/11\. They contacted the
CEO/Chairman asking to wiretap all the customers. After he consulted with
Legal, he refused. As a result, NSA canceled a bunch of unrelated billion
dollar contracts that QWest was the top bidder for. And then the DoJ targeted
him and prosecuted him and put him in prison for insider trading -- on the
theory that he knew of anticipated income from secret programs that QWest was
planning for the government, while the public didn't because it was classified
and he couldn't legally tell them, and then he bought or sold QWest stock
knowing those things.

This CEO's name is Joseph P. Nacchio and TODAY he's still serving a trumped-up
6-year federal prison sentence today for quietly refusing an NSA demand to
massively wiretap his customers."

[1]
[https://mailman.stanford.edu/pipermail/liberationtech/2013-J...](https://mailman.stanford.edu/pipermail/liberationtech/2013-June/008815.html)

------
shiftpgdn
To all the people claiming this was solely as a result of insider trading:
Have you ever dealt with the government in any capacity? Especially any of the
3 letter agencies?

They will lean on you and they will absolutely try to ruin your life because
you inconvenienced them. Did you know lying to an FBI agent is a federal
offense[1]? Did you know it's status quo to try to trick people they're
interviewing into presenting a lie or obscuring the facts? They do this so
they can present you with the option of either A. Doing everything they demand
or B. Become a felon and face time in prison with rapists and murderers.

I can absolutely guarantee Nacchio went to prison over not helping the NSA.

[1][http://www.fbi.gov/stlouis/press-
releases/2010/sl101210.htm](http://www.fbi.gov/stlouis/press-
releases/2010/sl101210.htm)

~~~
sneak
> Did you know lying to an FBI agent is a federal offense[1]?

Holy fuck that's terrifying. I had no idea.

Time for a re-watching:
[https://www.youtube.com/watch?v=6wXkI4t7nuc](https://www.youtube.com/watch?v=6wXkI4t7nuc)

~~~
wpietri
That seems reasonable to me. Obstruction of justice [1] is and should be a
crime.

[http://en.wikipedia.org/wiki/Obstruction_of_justice](http://en.wikipedia.org/wiki/Obstruction_of_justice)

~~~
otterley
I don't have a problem with obstruction of justice being a crime, but I do
believe that the law should make it similarly illegal for a law-enforcement
officer to lie to a criminal suspect or witness.

If we care about the truth as a moral and cultural foundation, it seems
reasonable we demand it on both sides of the playing field.

------
tptacek
It's a short indictment. Nacchio was convicted along with several other Qwest
execs.

[http://extras.mnginteractive.com/live/media/site36/2007/0307...](http://extras.mnginteractive.com/live/media/site36/2007/0307/20070307_030947_nacchio_indictment.pdf)

Obviously, the indictment has nothing to do with wiretaps, and concerns itself
instead with the millions of dollars Nacchio made selling his stock while
demonstrably in possession of material nonpublic information.

But of course, it's hard disprove a negative, so the idea that this conviction
alone among hundreds of similar convictions across corporate America at the
time is in fact retaliation... well, it'll never die.

~~~
lawnchair_larry
You should know better than to consider an indictment as a reliable source of
information. They're like rejected Hollywood movie scripts. They have every
incentive to demonize the target and paint everything in the worst light
possible, so it's not surprising that this is exactly what they do.

~~~
tptacek
A jury found him guilty of 19 counts.

------
jnbiche
It's really strange to read the pro-government people here and elsewhere claim
on one hand that Snowden was incredibly naive to be surprised that the CIA
railroaded foreign bankers into informing by manipulating the legal system,
and then turn around and claim that any talk of the NSA "arranging" Nacchio's
sentencing is some kind of conspiracy theory. The logical discord is hard to
understand.

I'm not convinced Nacchio was railroaded (I don't know enough about it yet),
but it's definitely the modus operandi of powerhouse intelligence services
around the world. So it's entirely possible Nacchio was set up, or at the
least, that the some member of the US intelligence community was behind the
prosecution.

------
blhack
If you read the entire article, this seems to be the timeline:

1) He is tried for insider trading, and convicted.

2) He appeals this because the trial excluded a key witness that supported his
innocence .

3) He WINS this appeal, and is granted another trial.

4) He is tried again, this time not in front of a jury. The circuit court of
appeals, where this is tried (stressing: without a jury this time) convicts
him 5-4.

This isn't nearly as clear cut as some of the people in this thread are making
it, and it does arouse some suspicion.

~~~
_delirium
I don't think #4 is correct; that wasn't a trial, but a review of the
appellate decision. The timeline as I read it is this:

1\. He is tried (in district court, with a jury) for insider trading, and
convicted.

2\. He appeals to the 10th Circuit Court of Appeals.

3\. A 3-judge panel of the 10th Circuit holds that the exclusion of a witness
prejudiced his trial, and sets aside his conviction, ordering a new trial.

4\. The prosecution appeals that holding to the _en banc_ 10th Circuit.

5\. The full 9-judge 10th Circuit re-hears the appeal, and sets aside the
panel's decision (by a narrow 5-4 vote), reinstating the original conviction.

6\. He petitions the Supreme Court to hear the case and overturn the _en banc_
10th Circuit's decision, arguing that the panel's decision overturning the
conviction had been correct.

7\. The Supreme Court declines to hear the case, which ends the series of
appeals and leaves the original conviction in place.

~~~
rdl
This seems like a pretty clear case of 9th circuit = best circuit. I
personally factor "remaining in the 9th" heavily into my decisions about where
to live and work within the US.

------
peterjancelis
Context:
[https://mailman.stanford.edu/pipermail/liberationtech/2013-J...](https://mailman.stanford.edu/pipermail/liberationtech/2013-June/008815.html)

The article argues the 'insider trading' charge was related to the gag order.

~~~
ccarter84
On timeline: "After he consulted with Legal, he refused. As a result, NSA
canceled a bunch of unrelated billion dollar contracts that QWest was the top
bidder for. And then the DoJ targeted him and prosecuted him and put him in
prison for insider trading "

If that's a legit summary, the retaliatory removal of contracts his company
was in-line for --- doesn't seem very far stretched.

------
ccarter84
It's amazing how often government seems to act like a vengeful ex.

------
jongraehl
Neither of the two sides here (CEO, usgov) can fairly expect the benefit of
the doubt. I welcome any expert legal analysis of his alleged crimes, but
otherwise can't be bothered except to say there's a good chance his claims of
retaliation are true.

Let's keep in mind that congresspeople _legally_ commit insider trading all
the time, and surely many of their DC friends and allies do so illegally, but
without punishment. Or, let's remember how successful former public servants
are at earning a big salary on the basis of their connections+access (at best)
or as reward for their corruption (at worst).

------
nkohari
...for insider trading. What ridiculous link bait.

~~~
i_am_dead
This is how it works. The prosecutors identify a person they want to target
and then they work out what charges they can bring against them. Not the other
way around.

------
downandout
At least he is now in a halfway house and is due for release in September.
Given that few in the US care about their rights, I guess that people who
stand up for them should be grateful when they don't get locked up
permanently.

[http://www.denverpost.com/breakingnews/ci_22918125/former-
qw...](http://www.denverpost.com/breakingnews/ci_22918125/former-qwest-ceo-
joe-nacchio-moved-halfway-house)

------
jsonne
Very misleading. The article says he's in prison for insider trading.

~~~
adamnemecek
It's more complex than that.

~~~
money2burn
That man cost thousands of people their life savings. That's why he went to
prison. Had nothing to do with NSA

