Frank Quattrone Sentenced To 18 Months Gaol

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

13 September 2004

Last May, former CSFB star banker, Frank Quattrone was found guilty in a retrial of two charges of obstruction of justice and one of witness tampering. After an unsuccessful attempt at appeal, Mr Quattrone was sentenced last week to 18 months imprisonment. He was accused of hampering grand jury and regulatory investigations into the allocation of stocks in popular initial public offerings (IPOs) by forwarding and approving an e-mail advising CSFB staff to "clean up" their files.

The sentence was well above federal guidelines, which called for no more than 16 months, and from a probation department recommendation of 10 months, half on supervised release. US District Judge Richard Owen granted a prosecution request to lengthen the sentence to between 15 and 21 months on the grounds that he had committed perjury when he testified at his trial. The judge based his decision on Mr. Quattrone's denial before the jury that he intended to obstruct investigations by the Securities and Exchange Commission and a federal grand jury.

The judge said he would recommend that Mr. Quattrone serve his time at a federal minimum-security prison camp in Lompoc, California. The sentence will begin in October.

After sentencing, Mr. Quattrone thanked his friends and family for their support and said he would appeal. "I know I'm innocent and I never intended to obstruct justice. I'm confident at the end of this process I will be vindicated," he said.

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