In Securities and Exchange Commission (“SEC”) v. Joseph P. Nacchio (“Nacchio”), the District Court for the District of Colorado entered final judgment against Nacchio pursuant to a settlement reached between Nacchio and the SEC.
The settlement permanently enjoined Nacchio from violating any anti-fraud provisions of both the Securities Act and Securities Exchange Act. Most importantly, the order permanently prohibited Nacchio from serving as an officer or director of any company required to register securities under Section 12 of the Securities Exchange Act. In other words, Nacchio cannot participate in the management of a publicly traded company. Finally, the settlement required Nacchio to pay back approximately $45,000,000 of illegal insider trading profits but was "reduced by any amounts (including accrued interest) forfeited and paid by or on behalf of Defendant Nacchio to the United States in connection with the related criminal case." Because Nacchio paid $45,000,000 in criminal fines, this effectively eliminated any actual payments in the civil case.
This order concludes the SEC’s civil case against Nacchio.
Primary materials are available on DU’s Corporate Governance Website.