Only One Big Telecom CEO Refused To Cave To The NSA … And He’s Been In Jail For 4 Years
Former Qwest CEO Joseph Nacchio is currently serving a six-year sentence after being convicted of insider trading in April 2007 for selling $52 million of stock in the spring of 2001 as the telecommunications carrier appeared to be deteriorating.
During the trial his defense team argued that Nacchio, 63, believed Qwest was about to win secret government contracts that would keep it in the black.
Why Qwest Hung Up On NSA
AT&T Corp., Verizon Communications Inc., and BellSouth Corp. began sharing records of tens of millions of their customers’ phone calls with the NSA shortly after the 2001 terror attacks, according to USA Today. But when the NSA came calling, former Qwest Communications CEO Joseph Nacchio broke ranks with fellow former Bell companies.
“When he learned that no such authority had been granted and that there was a disinclination on the part of the authorities to use any legal process, including the Special Court which had been established to handle such matters, Mr. Nacchio concluded that these requests violated the privacy requirements of the Telecommications Act,” Nacchio’s attorney wrote in a statement.
Former CEO Says U.S. Punished Phone Firm
A former Qwest Communications Internationalexecutive, appealing a conviction for insider trading, has alleged that the government withdrew opportunities for contracts worth hundreds of millions of dollars after Qwest refused to participate in an unidentified National Security Agency program that the company thought might be illegal.
Former chief executive Joseph P. Nacchio, convicted in April of 19 counts of insider trading, said the NSA approached Qwest more than six months before the Sept. 11, 2001, attacks, according to court documents unsealed in Denver this week.4http://www.washingtonpost.com/wp-dyn/content/article/2007/10/12/AR2007101202485.html