E-mails undercut witness for Qwest case prosecution

DENVER -- A lawyer for Joseph Nacchio, the former chief executive of Qwest Communications International Inc., introduced e-mails that undercut testimony of a key prosecution witness at Nacchio's insider-trading trial.

Afshin Mohebbi, Qwest's former president, said Monday that he was never comfortable with optimistic revenue projections that prosecutors link to Nacchio's trading of $101 million in company stock in 2001.

Mohebbi, testifying under a grant of immunity, was shown the e-mails during cross-examination yesterday in federal court.

"i like this. the buildout for the growth page is very good," Mohebbi wrote in a May 12, 2001, e-mail, introduced by Nacchio's lawyer, Herbert Stern. "aren't you nervous it may give too much information out. i certainly like to go with it."

Nacchio, 57, is accused of selling $101 million in Qwest stock in 2001 based on nonpublic information the company would miss revenue targets. He faces as many as 10 years in prison and a $1 million fine on each of 42 counts against him if convicted.

Stern is seeking to undermine Mohebbi's testimony and counter prosecutors' contention Nacchio orchestrated an effort to prop up Qwest's health to satisfy Wall Street analysts as he sold shares.

Qwest reported that Mohebbi endorsed revenue growth of between 11.5 and 12.5 percent for the first quarter of 2001 at a conference hosted by Merrill Lynch in March 2001, according to an 8-K Securities and Exchange Commission filing.

"The 8-K does not correctly represent what I did at that conference," Mohebbi said under Stern's questioning.

Mohebbi testified he never approved statements in the Qwest 8-K that he was comfortable with the forecast.

Nacchio denies the charges, arguing that he believed Denver-based Qwest's public projections were accurate, and that new contracts with the government would boost Qwest's revenue.