Quattrone found guilty of obstruction
Frank Quattrone, the former star technology banker at Credit Suisse First Boston, has been found guilty of tampering with a federal investigation in the United States.
A jury delivered the verdict after a two-week retrial of the prominent Wall Street figure, who now faces up to two years in prison.
The conviction marks a victory for the US government’s efforts to punish corporate abuses of recent years, and serves as a reminder of boom-era excesses at one of Switzerland’s most important companies.
Quattrone, who headed CSFB’s technology investment division during the internet boom, was found guilty on two charges of obstruction of justice and one of witness tampering.
Sentencing is scheduled for September 8, pending an expected appeal.
“The consequences for Quattrone are devastating,” said former US federal prosecutor George Newhouse, “and the damage to his professional reputation is incalculable”.
The banker, who earned up to $100 million per year at the height of his career, helped manage some of the biggest stock offerings of the dotcom era, including Amazon and Netscape.
The charges against Quattrone arose during investigations by federal authorities into whether the Zurich-based banking group received kickbacks through inflated commissions from hedge funds in exchange for allocations of Initial Public Offerings (IPOs).
Email evidence
Quattrone was accused of obstructing investigators after sending an email message to members of his staff urging them to “clean up” their files.
He sent the message just days after an in-house lawyer told him that he might be called as a witness in the federal investigation.
Lawyers for Quattrone tried to convince the jury that the banker had been absorbed with personal and company matters when he wrote the email, and did not realise its significance to the investigation.
However, jurors, speaking after reaching their verdict, said they found it difficult to believe a man of his success and seniority would be so careless.
Quattrone’s lawyer, John Keker, vowed to launch an appeal.
The charges were first filed against Quattrone in the spring of 2003, shortly after he left the bank.
Although it did not admit to any wrongdoing, CSFB paid $100 million in early 2002 to settle federal charges that its brokers engaged in a scheme to share customer profits improperly on profitable IPOs.
swissinfo with agencies
Quattrone has been found guilty on two counts of obstruction of justice and one of witness tampering.
A jury delivered the verdict after a two-week retrial of the prominent Wall Street figure, who now faces up to two years in prison.
A mistrial was declared in October 2003 after jurors failed to agree on the charges.
The banker helped make Credit Suisse First Boston one of the world’s leading dealmakers on technology stocks and Initial Public Offerings (IPOs).
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