finra

FINRA

All NASD charges and sanctions against Frank Quattrone have been dismissed or set aside.
View related dismissal orders (CAF030007/CAF040060 and CAF030007 and http://www.sec.gov/litigation/opinions/34-53547.pdf)


 

 

FOR RELEASE:
CONTACT:
Friday, January 16, 2004
Nancy A. Condon 202-728-8379

 



NASD Hearing Panel Finds Former Tech Banker Frank P. Quattrone Failed to Respond in NASD Investigation

Washington, DC — NASD today announced that an NASD Hearing Panel found Frank P. Quattrone, the former head of Credit Suisse First Boston's (CSFB's) technology sector investment banking unit, failed to cooperate in an NASD investigation, violating NASD rules.

 

On March 6, 2003, NASD charged Quattrone with failing to cooperate in an NASD investigation including whether he encouraged CSFB Tech Group employees to destroy documents after he was notified of NASD and federal investigations. The complaint was an outgrowth of NASD investigations into investment banking activities, including IPO pricing and analyst conflicts of interest, that began in May 2000. The Hearing Panel found that Quattrone never provided NASD with the testimony requested in February 2003.

 

The Hearing Panel rejected all of Quattrone's arguments that he should not testify because of pending criminal charges against him; that NASD Enforcement did not need his testimony; and that compelled testimony would violate his Fifth Amendment right. The Panel determined that while Quattrone did fail to testify, there were certain mitigating circumstances. NASD refused to delay Quattrone's testimony and insisted on expediency without a compelling reason, the Panel ruled.

 

The Hearing Panel suspended him for one year and fined him $30,000. If Quattrone does not fully and unconditionally provide information within one year, he will be permanently barred from the securities industry.

 

The presiding Hearing Officer dissented on the sanctions, concluding that Quattrone's conduct warranted an immediate bar from the industry.

 

Unless the matter is appealed to NASD's National Adjudicatory Council (NAC), or called for review by the NAC, the Hearing Panel's decision becomes final after 45 days. If the decision is appealed or called for review, the sanctions may be increased, decreased, modified or reversed.

 

A Hearing Panel consists of an NASD Hearing Officer, along with two members of the securities industry. The NAC is a 14-person committee composed of seven industry and seven non-industry members that decides appeals from disciplinary, membership and exemption decisions; rules on statutory disqualification applications; and advises on other policy matters.

 

Investors can obtain more information and the disciplinary record of any NASD-registered broker or brokerage firm by calling NASD's BrokerCheck. NASD makes available BrokerCheck at no charge to the public. In 2003, members of the public used this service to conduct more than 2.9 million searches for existing brokers or firms and requested almost 180,000 reports in cases where disclosable information existed on a broker or firm. Investors can link directly to the program by going online to www.nasdbrokercheck.com. Investors can also continue to access this service by calling 1-800-289-9999.

 

NASD is the leading private-sector provider of financial regulatory services, dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. NASD touches virtually every aspect of the securities business - from registering and educating all industry participants, to examining securities firms, enforcing both NASD rules and the federal securities laws, and administering the largest dispute resolution forum for investors and member firms. For more information, please visit our Web Site at www.nasd.com.