Quattrone To Avoid Third Trial

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

24 August 2006

The possibility of a third trial for former CSFB star broker, Frank Quattrone has seemingly been averted by a deferred prosecution agreement reached this week.

Under the terms of the agreement, unveiled on Tuesday, if Quattrone remains law-abiding for a year and avoids associating with criminals for the same period, the charges against him will be dropped.

He must also provide notification if he intends to move, or to travel outside the United States.

Welcoming the news that despite these restrictions, he is free to return to work at any time, Quattrone announced, according to the New York Law Journal that he was "very pleased that the case will be concluded".

"I look forward to the formal dismissal of all charges," he reportedly added.

The case against Quattrone stemmed from the former investment banker's forwarding of an e-mail urging CSFB employees to 'clean up' their files pending a federal investigation of the allocation of shares in popular initial public offerings.

He refused to cooperate with an NASD inquiry into the matter, invoking his Fifth Amendment right not to incriminate himself, on the grounds that he was also facing criminal charges over his alleged actions.

The National Association of Securities Dealers and the Securities and Exchange Commission both imposed lifetime securities industry bans on Quattrone, although these have since been overturned.

Recommended