Quattrone Gets 18 Months + $90K Fine

Frank Quattrone, former Credit Suisse First Boston investment banker, sentenced to 18 months in prison and charged $90,000

September 9, 2004

3 Min Read


DAVID N. KELLEY, the United States Attorney for the Southern District of New York, announced that FRANK QUATTRONE, the former Global Head of the Global Technology Group at Credit Suisse First Boston Corporation ("CSFB"), was sentenced today in Manhattan federal court to 18 months in prison. He was also fined $90,000.

QUATTRONE's sentence followed his May 3, 2004, convictions for obstruction of justice, obstruction of agency proceedings, and witness tampering in connection with his December 2000 direction to CSFB employees to destroy documents subpoenaed by a federal grand jury and the United States Securities and Exchange Commission (the "SEC").

According to the Indictment and the evidence presented at trial, during 2000, QUATTRONE learned that CSFB was the subject of investigations by NASD, the SEC, and a federal grand jury into its practices in allocating shares in certain initial public offerings ("IPOs") that it underwrote during 1999 and 2000.

According to the Indictment and the trial evidence, CSFB's Legal and Compliance Department advised QUATTRONE of the existence of each of these investigations, told him he was a likely witness in the SEC and grand jury investigations, advised him to retain his own counsel, and instructed him to produce various IPO-related documents that he and other CSFB investment bankers in the Global Technology Group created and maintained. Among other things, CSFB's General Counsel for the Americas: (a) sent QUATTRONE a series of e-mails on December 3, 2000, in which he advised QUATTRONE of the existence and nature of the Grand Jury investigation; and (b) telephoned QUATTRONE on December 5, 2000, to advise QUATTRONE that he was a likely witness in the grand jury investigation and to advise him to retain personal counsel.

According to the Indictment and the evidence at trial, on December 5, 2000 - two days after first learning of the grand jury investigation, and hours after speaking to CSFB's General Counsel, QUATTRONE sent an e-mail message to hundreds of investment bankers and others in CSFB's Global Technology Group in which he strongly advised them to clean up IPO-related files by discarding documents. The evidence at trial established that various CSFB employees followed QUATTRONE's direction and destroyed documents that had been subpoenaed by the grand jury and the SEC.

In imposing sentence, United States District Judge RICHARD OWEN, who presided over the trial, found that QUATTRONE had committed perjury when he testified in his own defense at trial.

Judge OWEN directed that QUATTRONE surrender to the facility designated by the United States Bureau of Prisons by October 28, 2004. Judge OWEN denied QUATTRONE's request that he remain at liberty pending appeal, finding that QUATTRONE had failed to raise a "substantial question" for appeal. QUATTRONE, 48, is a resident of Los Altos, California. Mr. KELLEY praised the efforts of the Federal Bureau of Investigation and thanked the SEC and NASD for their assistance in this matter.

Assistant United States Attorneys STEVEN R. PEIKIN and DAVID B. ANDERS are in charge of the prosecution.

Source: U.S. Attorney's office www.usdoj.gov

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