Feds indict ex-CSFB banker Quattrone
By Luisa Beltran, CBS.MarketWatch.com
Last Update: 4:34 PM ET May 12, 2003
NEW YORK (CBS.MW) -- Federal prosecutors indicted Frank Quattrone, a former star technology banker at Credit Suisse First Boston, on criminal obstruction and witness tampering charges Monday.
The U.S. Attorney's office for the Southern District of New York charged Quattrone with obstructing an investigation by the Securities and Exchange Commission, impeding a Grand Jury probe and with witness tampering, according to the 29-page indictment.
The indictment supercedes a criminal complaint filed against Quattrone on April 23 with similar charges. Quattrone had been set to appear Tuesday in federal court for a preliminary hearing if he was not indicted.
Quattrone's arraignment date was not immediately known. Judge Naomi Buchwald recused herself Monday for unknown reasons and a new judge must be found, a spokesman for the U.S. Attorney's office said.
The former banker faces a maximum 10 years in jail for obstructing the grand jury probe, a maximum 5 years for impeding the SEC investigation and 10 years for the witness tampering charge. For each count, Quattrone could also be fined $250,000.
CSFB, the investment-banking arm of Credit Suisse Group(CSR: news, chart, profile), placed Quattrone on administrative leave on Feb. 3. He resigned on March 4.
Quattrone, 47, allegedly advised colleagues in late 2000 to destroy documents while regulators were investigating the way Wall Street investment banks were doling out shares of lucrative initial public offerings.
John Keker, Quattrone's attorney, said Monday he would request a speedy trial.
"Frank Quattrone is innocent," Keker said in a statement. "He is charged with a crime that he did not commit."
During the technology boom of the late 1990s, Quattrone was widely regarded as one of the most successful bankers on Wall Street. Among his successes, Quattrone's group handled the phenomenal IPOs of companies like Netscape Communications, since acquired by AOL Time Warner(AOL: news, chart, profile), and VA Linux Systems.
Shares of Credit Suisse Group dropped 16 cents to $24.52 Monday
Luisa Beltran is a reporter for CBS.MarketWatch.com in New York. |
