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Qwest's catch-22

post #1 of 2
Thread Starter 
This is twisted.

Quote:
Documents: Qwest was targeted
'Classified info' was not allowed at ex-CEO's trial

By Sara Burnett And Jeff Smith, Rocky Mountain News
October 11, 2007

The National Security Agency and other government agencies retaliated against Qwest because the Denver telco refused to go along with a phone spying program, documents released Wednesday suggest.

The documents indicate that likely would have been at the heart of former CEO Joe Nacchio's so-called "classified information" defense at his insider trading trial, had he been allowed to present it.

The secret contracts - worth hundreds of millions of dollars - made Nacchio optimistic about Qwest's future, even as his staff was warning him the company might not make its numbers, Nacchio's defense attorneys have maintained. But Nacchio didn't present that argument at trial.

The documents suggest U.S. District Judge Edward Nottingham refused to allow Nacchio to present the argument about retaliation. Nottingham also said Nacchio would have to take the stand to raise the classified defense.

Prosecutors have said they were prepared to poke holes in Nacchio's classified defense.

Nacchio was convicted last spring on 19 counts of insider trading for $52 million of stock sales in April and May 2001, and sentenced to six years in prison. He's free pending appeal.

The partially redacted documents were filed under seal before, during and after Nacchio's trial. They were released Wednesday.

Nacchio planned to demonstrate at trial that he had a meeting on Feb. 27, 2001, at NSA headquarters at Fort Meade, Md., to discuss a $100 million project. According to the documents, another topic also was discussed at that meeting, one with which Nacchio refused to comply.

The topic itself is redacted each time it appears in the hundreds of pages of documents, but there is mention of Nacchio believing the request was both inappropriate and illegal, and repeatedly refusing to go along with it.

The NSA contract was awarded in July 2001 to companies other than Qwest.

USA Today reported in May 2006 that Qwest, unlike AT&T and Verizon, balked at helping the NSA track phone calling patterns that may have indicated terrorist organizational activities. Nacchio's attorney, Herbert Stern, confirmed that Nacchio refused to turn over customer telephone records because he didn't think the NSA program had legal standing.

In the documents, Nacchio also asserts Qwest was in line to build a $2 billion private government network called GovNet and do other government business, including a network between the U.S. and South America.

The documents maintain that Nacchio met with top government officials, including President Bush, Vice President Dick Cheney and then-National Security Adviser Condoleeza Rice in 2000 and early 2001 to discuss how to protect the government's communications network.
The rest (and more) is here and here.
post #2 of 2
Twisted, but is it really a surprise anymore?
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