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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Mitchell who wrote (975)	5/18/2001 8:56:08 AM
From: dantecristo	Respond to of 12465

Remember when CSFB SLAPPed? "CSFB director, trader under investigation A Credit Suisse First Boston director and a trader who worked with institutional clients are being investigated as part of a probe into the allocation of shares in initial public offerings, according to regulatory filings. They bring to six the number of CSFB employees known to be under inquiry by the regulatory arm of the National Association of Securities Dealers, according to the group's Web site. Ladd William McQuade, a director in CSFB's Boston office, and Dominick Commesso, the sales trader; the pair being investigated, are still employed at the firm. They denied any wrongdoing, according to the filing." www0.mercurycenter.com

To: Jeffrey S. Mitchell who wrote (975)	6/29/2001 9:33:37 AM
From: dantecristo	Respond to of 12465

Remember when Credit Suisse First Boston (CSFB) SLAPPed? "S.F. brokers fired in probe Published Friday, June 29, 2001, in the San Jose Mercury News BY TIA O'BRIEN Mercury News Investment bank Credit Suisse First Boston has fired three San Francisco-based brokers as an industrywide federal investigation continues into how coveted shares of initial public offerings were allocated during the Internet boom. All three employees -- John Schmidt, former head of an elite group at Credit Suisse, the technology-private-client-services group; senior broker Michael Grunwald, and junior broker Scott Bushley -- were put on administrative leave in March. At the time, the bank would say only that the men had violated bank polices and procedures. The three tech brokers worked closely with the technology investment group run by Credit Suisse's superstar investment banker, Frank Quattrone, whose group is based in Palo Alto. The three brokers handled accounts for his operation's wealthy clients. But Credit Suisse has said Quattrone is not under investigation by the Securities and Exchange Commission or other regulators. Credit Suisse will reveal little publicly about why it has fired the brokers except to say the move is the result of an extensive internal probe. Sources at the bank say the probe showed activity that involved pressuring clients, primarily hedge funds, for unusually high commissions in return for allocating hot IPO stock. Federal regulators are looking into whether high commissions for IPO stock allegedly demanded by employees at Credit Suisse and other banks, including Morgan Stanley and Goldman Sachs, amounted to kickbacks. To date, none of the three brokers fired by Credit Suisse has been named by investigators looking into alleged irregularities, nor have they received notices from regulators. They all deny any wrongdoing. ``Credit Suisse First Boston has unfairly singled out the San Francisco brokers,'' says Michael Doyen, the attorney for Grunwald. Bushley's attorney, Eugene Licker, claims his client was just following orders: ``His responsibilities were narrow and he carried them out precisely as instructed,'' Licker said. Close associates of the brokers contend that they're being made into scapegoats for practices that were commonplace at the bank and throughout the industry. Bank spokesperson Jeanmarie McFadden said that the internal Credit Suisse probe failed to uncover problems with any other employees. McFadden said the bank's review included Andrew Benjamin, the New York executive who formerly headed up the private-client-services group and several other East Coast employees who've received notices from the National Association of Securities Dealers that they may have violated securities regulations. Even though Schmidt reported jointly to Quattrone in Palo Alto and to Benjamin in New York, bank officials say Quattrone had no oversight responsibility for such activity as trading, commissions and IPO allocations. Recently, Credit Suisse changed the line of command, and the tech private-client-services brokers no longer report to him. Quattrone's Palo Alto-based tech group has been a powerhouse for Credit Suisse. At the height of the Internet boom, Quattrone built a team that catapulted Credit Suisse from 12th to first place, taking more technology start-ups public last year than traditional Wall Street investment bank leaders Morgan Stanley and Goldman Sachs. ------------------------------------------------------------------------ Contact Tia O'Brien at tobrien@sjmercury.com." www0.mercurycenter.com

To: Jeffrey S. Mitchell who wrote (975)	11/28/2001 12:20:42 PM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 12465

Re: 11/4/01 - [CFSB] Final result of CFSB lawsuit To:arnie h who wrote (1308) From: William Partmann Sunday, Nov 4, 2001 12:00 PM View Replies (1) \| Respond to 1309 of 1349 Hey arnie, was trying to forget about the suit. Not! The suit against me was settled in January of 2001. I was the last one, probably because of the copywrite issue. Against me, the case was a draw. No admission of guilt, no monetary settlement. I agreed to obey the existing laws of copyright which is nothing more than agreeing to follow the law, a nonconcession. I contested the jurisdiction issue which we agreed would remain unsettled until the next suit, ie I didn't waive my objections to jurisdiction by entering the settlement. I admitted no wrong doing either in defamation or copyright. Regarding the other 10 if I remember four cases were dismissed unilaterally by CSFB, an admission that they had no case. Four had settlements like mine but without the copyright and jurisdiction issues. The last two did not communicate with the group so I don't know for sure. I suspect their settlements were somewhat the same though there may have been a slight twist because of the content of their original post. Bill Message 16605128

To: Jeffrey S. Mitchell who wrote (975)	1/23/2002 9:58:02 AM
From: dantecristo	Read Replies (1) \| Respond to of 12465

"Wall Street firm CSFB agrees to pay $100 million to settle SEC probe MARCY GORDON, AP Business Writer Tuesday, January 22, 2002 ©2002 Associated Press URL: sfgate.com (01-22) 09:48 PST WASHINGTON (AP) -- Credit Suisse First Boston has agreed to pay $100 million to resolve federal regulators' allegations of abuses in its distribution of hot new stock offerings, the government announced Tuesday. The Securities and Exchange Commission alleged that CSFB, a major investment firm, gave favored investors a larger number of shares of initial public offerings of stock, or IPOs, and got a share of its clients' IPO profits in the form of inflated commissions on other stock trades. The SEC has been investigating for about 18 months Wall Street's dealings in IPOs during the tech-stock boom of 1999 and 2000. As the lead underwriter of hot IPOs for companies including VA Linux Systems Inc., Selectica, Gadzooks Networks and MP3.com, CSFB had control over the allocation of most of the shares in the IPOs, the SEC said. In exchange for some of the highly-coveted stock, CSFB "wrongfully extracted" from certain customers a large share of the big profits those customers made in quickly reselling the IPO stock they got from CSFB, according to the agency. It said that between April 1999 and June 2000, CSFB allocated shares of IPOs to more than 100 customers who, in return, funneled between 33 percent and 65 percent of their IPO profits to the investment firm. The customers typically resold the stock on the day of the IPO, often gaining tremendous profits, then transferred a share of the profits to CSFB in the form of excessive brokerage commissions, the SEC alleged. CSFB neither admitted to nor denied the agency's allegations in agreeing to settle the SEC's civil lawsuit filed in federal court in Washington and a related action by the self-policing arm of the National Association of Securities Dealers. In a statement, New York-based CSFB noted that the SEC and the NASD did not allege any fraudulent conduct by the firm. "Today's settlement ... allows us to move forward," said John J. Mack, CSFB's chief executive officer. "We are strongly committed to upholding the highest standards of conduct at CSFB." In addition to paying the $100 million, the investment firm also agreed to refrain from future violations and to tighten its practices to prevent future improprieties in selling IPOs. The firm also said it is taking disciplinary action against the employees involved, including fines, suspensions without pay and suspensions from supervisory duties. Last June, three CSFB employees based in San Francisco were fired for their conduct related to IPO allocations. CSFB will pay restitution of $70 million as well as civil fines totaling $30 million. That is one of the largest civil penalties ever imposed on a brokerage firm, said Stephen M. Cutler, the SEC's enforcement director. "CSFB improperly took advantage of its position as underwriter by allocating shares of hot IPOs to customers who agreed to share their IPO profits by paying excessive commissions," Cutler said. Famed speculator Ivan Boesky paid the same amount in connection with the Wall Street insider-trading scandals of the 1980s. Other Wall Street firms reportedly being investigated for IPO practices include Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co. and FleetBoston Financial Corp. ------------------------------------------------------------------------ On the Net: Securities and Exchange Commission: www.sec.gov Credit Suisse First Boston: www.csfb.com ©2002 Associated Press "