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The Department of Justice is gearing up to make a case against Joe Nacchio. The Denver Post reports former Qwest President Afshin Mohebbi will be providing testimony against Nacchio in exchange for immunity from prosecution:
Former Qwest president and chief operating officer Afshin Mohebbi is likely to testify for the prosecution in a potential criminal trial against former chief executive Joe Nacchio, according to sources. He is not expected to plead guilty to a criminal charge and may have been granted immunity from prosecution in return for testimony that could implicate Nacchio, said several people close to the case who requested anonymity.1 Year of 5280 for justSubscribe Today »
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Nacchio is expected to be indicted within the next few weeks. While Mohebbi did not sell any shares of Qwest while he worked for the company, he may have needed the immunity for other misdeeds.
The SEC singled him out for pushing the sales force to close questionable deals, sometimes in the last days of the quarter. The SEC also said Mohebbi and others entered into secret side agreements and falsified documents to hide those deals from Qwest’s accountants and outside auditors.
It sounds like there will be more than enough dirty laundry to go around. Some 5280 background is here.