Quattrone avoids third trial with deferred prosecution deal

Quattrone avoids third trial with deferred prosecution deal

[JURIST] A federal judge on Tuesday consented to a deferred-prosecution agreement [text] between federal prosecutors and investment banker Frank Quattrone [NNDB profile] that allows Quattrone to avoid a third trial on obstruction of justice and witness tampering charges [indictment, PDF] without admitting guilt. Under the deal, the indictment against Quattrone will be dropped if he keeps his name clear for one year.

Quattrone, one of the dot-com era's most prominent investment bankers, was accused of forwarding emails to fellow employees at Credit Suisse [corporate website], encouraging them to "clean up" files and other evidence in the midst of an SEC investigation into whether the company was selling shares to preferential buyers during initial public offerings. Quattrone's first trial resulted in a mistrial [JURIST report] after the jury could not agree on a verdict, but Quattrone was later convicted [JURIST report] for sending a 22-word e-mail encouraging colleagues to destroy files. The conviction was overturned [JURIST report] by a federal appeals court in March on the grounds that the jury instructions were erroneous. After an appeal [JURIST report] by Quattrone, the US Securities and Exchange Commission [official website] earlier this year reversed a lifetime ban [JURIST report] preventing Quattrone from working in the securities industry. AP has more.