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Ex-banker Quattrone fined, suspended

Former star investment banker Frank Quattrone on Friday was fined $30,000 and suspended from working in the securities industry for one year by a securities industry regulatory panel that said he interfered with an investigation.
/ Source: Reuters

Former star investment banker Frank Quattrone on Friday was fined $30,000 and suspended from working in the securities industry for one year by a securities industry regulatory panel that said he interfered with an investigation.

The NASD had been investigating whether Quattrone encouraged employees in his investment banking unit of CSFB to destroy internal documents that were being sought as part of a broader probe into hot stock offerings.

Quattrone refused to testify in front of the NASD, saying last year that he should not have to appear because of the pending criminal charges against him.

The NASD hearing panel on Friday said that while Quattrone "did fail to testify, there were certain mitigating circumstances" and gave him one year to provide information. If he does not, the panel said, he will be permanently barred from the securities industry.

Quattrone, among the first bankers to see the coming technology bonanza in the 1990s, has been charged by federal prosecutors with obstruction of justice. His first trial on the charges ended with a hung jury.