Quattrone Facing Permanent Securities Industry Ban

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

24 November 2004

The US National Association of Securities Dealers on Monday announced that it is seeking to permanently bar former CSFB star broker, Frank Quattrone from securing another position within the securities industry.

Quattrone was convicted earlier this year of hindering an investigation into the allocation of shares in popular IPOs (initial public offerings) by CSFB in the 1990s. He was sentenced to 18 months in prison, and obliged to pay a $90,000 fine.

Following delivery of the verdict, the NASD launched a campaign to overturn an earlier panel ruling which banned the investment banker from the securities industry for just one year, arguing that:

"In view of the serious nature of Quattrone's misconduct and the lack of mitigating facts, we conclude that a bar is necessary in this case to protect the integrity of NASD's investigative responsibilities."

Speaking to the Associated Press, Quattrone's attorney, Ken Hausman revealed that his client will seek to overturn the "publicity-driven" ruling, which he argued "singles out Frank Quattrone for harsher treatment than other individuals in related cases".

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