Now that Qwest (NYSE:Q) is finally back up to the same low price it was in January 2002 -- $8.65 per share -- long suffering investors will be in for a bumpy week as former Qwest CEO Joseph Nacchio's trial on 42 charges of insider trading begins in federal court in Denver. If convicted on most or all insider trading charges, Mr. Nacchio, 57, faces the possibility of life in prison. Legal reporters argue that 10 years in prison and the forfeiture of $100 million in ill-gotten gains is a more likely punishment scenario. What makes Mr. Nacchio's trial more than the usual white-collar fraud trial is that his defense is claiming the case involves national security issues. Unless the four national security agencies involved are willing to provide documentation and allow testimony in open court, Mr. Nacchio cannot possibly receive a fair trial. Thus the charges against him must be dropped. National security agency attorneys are trying to persuade the judge that these national security issues are merely fabrications to deflect attention from Mr. Nacchio's misdeeds.

What is agreed upon is that Mr. Nacchio sold $100 million in Qwest stock in 2001 at a time when he knew Qwest was experiencing financial difficulties. Mr. Nacchio does not dispute that he sold the stock, but due to private meetings with then National Security Advisor Condoleezza Rice, Mr. Nacchio states he was given to understand Qwest would benefit from certain "blackbox" telecommunications national security contracts. When these "blackbox" contracts did not materialize, Qwest experienced financial problems leading it to the edge of bankruptcy. Mr. Nacchio was charged with insider trading in 2005. Mr. Nacchio's trial may set a new low in legal bloviation.

Also in the news, the Associated Press states Qwest founder, railroad baron Philip Anschutz, the man who hired Joseph Nacchio to run Qwest, has entered a private deal to sell almost all of his remaining shares in the company. On February 27, 2007, Mr. Anschutz sold 2.7 million shares for $24 million, an average price of $8.66-8.78 per share. More interesting, however, is his private deal to sell in excess of 20 million shares in 2010 for an undisclosed price. He will receive a current prepayment of $150.5 million from this private deal, details of which are difficult to obtain. Does this sound like a run for the exit to anyone else? What does Mr. Anschutz know about Mr. Nacchio's impending trial that other Qwest investors do not?