The Insider trading trial against Quest’s Communication’s CEO is moving forward. The CEO of a corporation is privy to information that the general investing public and even investment brokers are not provided. For any insider, including the CEO, CFO or other officer or director, it is considered a criminal act to take advantage of non public information. To allow such conduct would permit these trusted individuals, charged with the responsibility of running the corporation, to manipulate the stock for their own personal advantage and to the detriment of millions of shareholders.
Joseph Nacchio, former CEO of Denver-based Qwest Communications, is charged with improperly selling $101 million of stock months before the telephone service provider for 14 mostly Western states became mired in a multibillion dollar accounting scandal.
Qwest was forced to restate about $2.2 billion in revenue because of the scandal.
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