Before Edward Snowden, there was Joseph Nacchio. Before there was Verizon’s betrayal of its customers trust, there was the 2001 version of Qwest Communications steadfast loyalty to the Constitutional liberties of its customers and its refusal to give in to the tyranny of the federal government.
As the world marvels at the integrity and courage of Edward Snowden, most have never heard of Joseph Nacchio. Nacchio is no less courageous, no less honorable and no less of a hero than Snowden. Both men are/were willing to go to prison rather than to submit others to unwarranted tyranny at the hands of the NSA and the criminal federal government.
Meet Joseph Nacchio
Joseph Nacchio was the son of a New York City longshoreman and a bartender. Nacchio blazed a different trail than his father and received his BS in electrical engineering from New York University in 1970 and later he earned an MBA from New York University and a Master’s degree in Management (SM) as a Sloan Fellow from the MIT Sloan School of Management in 1986 .
In the late 1990’s, Nacchio rose through the ranks to become the CEO of Quest Communications. He had very early success in his role as CEO as Qwest acquired their rival, US West, in a hostile takeover action under Nacchio’s leadership. Life was good as the stock of Quest reached a high of $38 per share. However, Nacchio’s charmed life was about to take a dramatic turn for the worse.
In February of 2001, the NSA approached Nacchio and demanded that he turn over Quest’s communication records of its clients. Nacchio demanded a court order and NSA withdrew its demand. Shortly thereafter, the federal government also withdrew ALL of its lucrative federal government contracts from Qwest Communication and the stock plummeted from $38 dollars per share to $2 dollars per share. The investors ousted Nacchio citing the bottom line.
On the heels of bringing Quest Communications to its knees and causing Nacchio to lose his job, the corrupt federal government demanded more as they wanted to make an example out of Nacchio to serve as a warning for other heads of the telecom corporations who might otherwise not give in to their bullying and intimidation tactics.This is where the subject of stock option payments for CEO’s arises and this would prove to be Nacchio’s downfall and will cause him to lose his freedom. As an aside, my wife used to be the executive head of the corporate owned McDonalds restaurants in Arizona. When she retired to become a full time mom, part of her compensation package continued after her retirement in the form of corporate stock options which we cashed in for the next several years. The practice is perfectly legal. In a more dramatic example of this routine practice of compensating executive heads of corporations with stock options, former British Petroleum CEO, Tony Hayward, dumped his stock in BP a few weeks prior to the Gulf oil explosion. Although it is clear that he had foreknowledge of the event and financially prepared to profit from the explosion, his stock option award from BP was perfectly legal. Conversely, part of Nacchio’s compensation package consisted of stock option payments as a direct incentive to grow the corporation. When the federal government withdrew its major contracts from Qwest Communications in February of 2001 for Nacchio’s refusal to break the law and permit the NSA to spy on Qwest customers , stock plummeted as a result of the federal government’s actions.
If the story stopped here, we would simply have a case of extreme revenge against a CEO and his corporation for refusing to break the law and violate the civil liberties of Qwest customers. However, the federal government wanted its pound of flesh as they eventually prosecuted Nacchio, thus, accusing him of orchestrating a pump and dump scheme and personally profiting from his stock options, while Qwest Communication investors took massive losses. The massive losses were the result of the withdrawal of federal contracts and had nothing to do with Nacchio’s stock option payments.
The payment of stock options, either on the upside of the market or on the downside of the market, is standard industry practice and is legal. Yet, Nacchio has served nearly six years in federal prison on these trumped up charges of “insider trading” in retaliation for his refusal to participate in this Mafia style federal government protection racket. And there’s more as members of congress, particularly the leadership, routinely engages in insider-trading. Nacchio did not insider trade, and he goes to prison. Congress insider trades all the time and nobody goes to prison.
Originally, the government convicted Nacchio of insider trading but his conviction was overturned. However, one does not say no to the federal government mafia and they kept coming after him until they found a corrupt judge to convict him in a subsequent retrial.
The following clip partially illustrates how common Congressional insider trading has become.
So much for protecting the investors from the evils of insider trading. But wait, there is more, far more to this case than the government merely abusing its power and breaking the law on several occasions.
If one were to ask any seemingly knowledgeable person, when did America begin the journey down the road to become a full blown police state? Most people would quickly answer “after 9/11,” and most people would be absolutely wrong. Remember the NSA approached Nacchio in February of 2001 seeking Qwest Communications records. This was seven full months BEFORE 9/11. Subsequently, the installation of the police state surveillance grid was well underway PRIOR to 9/11.
Joseph Nacchio is ultimately the most important figure in the unwarranted government surveillance and data mining of its citizens. More importantly, his case cuts to the heart of the myth that the government must take away our rights in order to protect our rights against evil terrorists who are hiding behind every corner. These resulting implications about the motivations behind the war on terror cannot be overstated.
The Nacchio case is critically important for two reasons: (1) It illustrates why more people are too afraid and not willing to just say no to the NSA and refuse to participate in the installation of the American Stasi because they are afraid to go to prison; and, (2) More importantly, it exposes one of the biggest governmental lies of all time as this case clearly demonstrates that the installation of the police state surveillance grid was not due to the government’s desire to protect its citizens from terrorists in a post 9/11 world.
If the installation of the tyrannical police state was not due to 9/11, then what is the impetus for this phony war on terror? The answer to this question should make everyone re-examine why the federal government is establishing a police state. If it is not to fight terrorists, then who are they preparing to fight? Given these facts, shouldn’t we all reconsider the topics of FEMA camps, threat Fusion Centers, the NDAA and Executive Order 13603?
Recently, I was listening to a Fox News radio report which stated that half of surveyed Americans thinks that the Verizon/NSA spygate scandal is acceptable because it protects the people from terrorists. What do you think these same ignoramuses would say if they knew that the establishment of the American version of the Stasi started well in advance of 9/11?
One of the conclusions that I have also reached as a result of learning about the Nacchio case is that I think it is likely that one of the many reasons that 9/11 was carried out as a false flag event was because there were too many Joseph Nacchio’s and the federal government needed to move more quickly, under the pretext of 9/11, to establish a tyrannical police state.
Today, when communication industry heads, such as the CEO of Verizon, Lowell McAdam, are confronted with complying with the desires of the federal government to spy on its citizens, don’t you think that the federal government does not remind CEO’s, like McAdams, of the fate of Joseph Nacchio?
The inescapable and most important conclusion of the Nacchio case is that the illegal spying on the American people has nothing to do with the events of 9/11 and the federal government’s desire to protect its citizens from terrorist attacks. The war on terror is a CIA creation and a lie. Simply Google “Osama Bin Laden and the Mujahedeen” and you will learn how they later morphed into the Taliban and al-Qaeda. This is unquestionably the source of most terrorism on this planet and it was funded and controlled by the CIA and the timelines of the Nacchio case demonstrate the lie that the American people now live under.
In reality, you and I are the terrorists and we are funding our own demise.