Sunday, July 22, 2007

Prosecutors seek medical records for Nacchio's son


DENVER (Reuters) - Federal prosecutors have asked a judge to order former Qwest Communications International Inc.(Q.N: Quote, Profile, Research) Chief Executive Joseph Nacchio, who will be sentenced this week for insider trading, to give his son's psychiatric records to the government.

Nacchio, 58, was convicted in April on 19 counts of insider trading, and is scheduled to be sentenced July 27.

On July 6, Nacchio said in court filings in Denver federal court that he deserves leniency because of his "prior good works," and the health of two of his immediate family members, including David Nacchio, his oldest son.

Assistant U.S. Attorney James Hearty said in the motion on July 20 that Nacchio has submitted two letters from his son's psychiatrist and the government should be allowed to review the entire medical file to prepare a response at the sentencing.

"Defendant Nacchio has put his son's medical condition in issue," Hearty said in the motion.

Prosecutors want Nacchio to serve 87 months in prison, pay a $19 million fine and forfeit $52 million he was convicted of grossing on insider trades.

At Nacchio's trial, Qwest's founder, billionaire financier Philip Anschutz, testified that Nacchio wanted to quit the telephone company after his son's suicide attempt.

Defense lawyers said the testimony about Nacchio's son and the former CEO's willingness to leave the company showed that Nacchio could not have been plotting a crime.

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