The government's 3-year-old civil- fraud case against five former Qwest executives, including Joe Nacchio, may stall yet again because of the lack of resolution in the Nacchio criminal case and the possibility of a retrial.

During a status hearing Thursday, parties in the Securities and Exchange Commission civil case reported that discovery, or the exchange of evidence, is continuing.

But depositions of key figures who testified during Nacchio's criminal trial are scheduled to begin in July, and those could be delayed.

This week, federal prosecutors petitioned the 10th Circuit Court of Appeals to reinstate an insider-trading conviction that had been reversed in March by a three- judge appellate panel.

While the appellate court has put the Nacchio case on an expedited status, it's unclear how quickly it will act. The panel ordered a new trial.

Key witnesses in Nacchio's criminal trial last year included former Qwest executives Gregory Casey, Robin Szeliga and Afshin Mohebbi. Casey is scheduled to be deposed in July in the SEC civil-fraud case.

The Justice Department was successful in its bid to freeze most of the civil-fraud case in the months before Nacchio's criminal trial, and that could occur again.

Federal Magistrate Judge Craig Shaffer said it was too early to worry about Casey's deposition, but he expressed concern about the issue as a whole.

"I think at some point the government has to be sensitive to the interests of the (civil-fraud) defendants," he said, and "in bringing this case to resolution while the (witnesses) are still alive."

In addition to Nacchio, the civil- fraud defendants include Mohebbi, former Chief Financial Officer Robert Woodruff and former accountants James Kozlowski and Frank Noyes.

Defense attorneys indicated the "state secrets" issue also will continue to be a thorny one.

In February, Shaffer encouraged the SEC to eliminate allegations that could involve national secrets, since such classified information likely wouldn't be allowed during a civil-fraud trial.

The SEC has drafted a proposed amended complaint. But defense attorneys, who have seen the draft, indicated they still will argue that classified government contracts Nacchio expected to receive are critical to the defense of their clients.

Shaffer said he doesn't see the state secrets issue as any different from any other issue about evidence - a judge has the discretion to decide whether it is relevant.

smithje@RockyMountainNews.com or 303-954-5155