Just one major telecommunications company refused to participate in a legally dubious NSA surveillance program in 2001. A few years later, its CEO was indicted by federal prosecutors. He was convicted, served four and a half years of his sentence and was released this month.
Prosecutors claim Qwest CEO Joseph Nacchio was guilty of insider trading, and that his prosecution had nothing to do with his refusal to allow spying on his customers without the permission of the Foreign Intelligence Surveillance Court. But to this day, Nacchio insists that his prosecution was retaliation for refusing to break the law on the NSA's behalf.
After his release from custody Sept. 20, Nacchio told the Wall Street Journal that he feels "vindicated" by the content of the leaks that show that the agency was collecting American's phone records.
Nacchio was convicted of selling of Qwest stock in early 2001, not long before the company hit financial troubles. However, he claimed in court documents that he was optimistic about the firm's ability to win classified government contracts — something they'd succeeded at in the past. And according to his timeline, in February 2001 — some six months before the Sept. 11 terrorist attacks — he was approached by the NSA and asked to spy on customers during a meeting he thought was about a different contract. He reportedly refused because his lawyers believed such an action would be illegal and the NSA wouldn't go through the FISA Court. And then, he says, unrelated government contracts started to disappear.How convenient. The government blackballs him, them prosecutes him for insider trading because he sold stock just before the government blackballed him. I guess that made an example for the rest of them.