honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser

Posted on: Friday, October 10, 2003

Former top banker takes stand in trial

By Erin McClam
Associated Press

Frank Quattrone, left, testified yesterday that an e-mail urging employees to destroy files was not meant to hinder SEC investigators.

Associated Press

NEW YORK — Former influential banker Frank Quattrone insisted he was not trying to hinder federal probes when he sent a brief e-mail urging employees to destroy files.

Quattrone took the stand in his own defense yesterday at his closely watched obstruction-of-justice trial and said he was unaware investigators had issued broad requests for documents from his bank, Credit Suisse First Boston.

On Dec. 5, 2000, Quattrone sent an e-mail urging employees to "clean up those files." Bank policy required destruction of some files — unless workers knew of lawsuits or subpoenas.

"I was simply seconding or encouraging people to follow the document retention policy," he testified.

Prosecutors say Quattrone knew the extent of the investigations and deliberately tried to block them.

Investigators were looking into whether CSFB accepted kickbacks in exchange for letting clients buy shares of hot initial public offerings.

The probe closed in 2001 with no criminal charges, and CSFB paid $100 million to settle civil charges without admitting wrongdoing.

On the stand, Quattrone reflected on a call earlier on Dec. 5, 2000, from CSFB lawyer David Brodsky, concerning the SEC investigation.

But Quattrone testified he was not alarmed because the investigation was limited to how stock shares were doled out by CSFB — not the rest of the bank's role in taking companies public.

Quattrone was among the most influential bankers during the late 1990s, helping take companies such as Amazon.com and Netscape Communications Corp. public.