Former CSFB General Counsel Says Quattrone Knew Of Subpoena

by Glen Shapiro, LawAndTax-News.com, New York

07 October 2003

Former Credit Suisse First Boston general counsel, David Brodsky has testified that disgraced investment banker, Frank Quattrone knew about federal grand jury subpoenas asking for information relating to the allocation of 'hot' IPOs during the technology bubble, before he forwarded an e-mail advising CSFB employees to "clean up" their files.

Defense attorney, John Keker had argued that Mr Quattrone's actions showed no criminal intent, and that he was merely following the firm's policy on document retention. He also suggested when the trial began that the former star banker could not have known about the subpoenas.

However, in his testimony, Mr Brodsky told the Manhattan federal courtroom that he had informed Mr Quattrone of the planned probe on December 3, 2000, two days before the latter forwarded the fateful e-mail suggesting that a little administrative housekeeping was in order.

The former general counsel also revealed that he had telephoned Mr Quattrone prior to his receipt of the e-mail, suggesting that it was likely that the investigation into the stock allocations "would turn in the direction of interviewing you", and advising that "it might be time...to obtain personal counsel".

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