Dot.com banker convicted of obstructing federal investigation

Quattrone and his former firm Credit Suisse First Boston (CSFB) promoted and arranged Initial Public Offerings (IPOs) for many technology companies in the late 1990s.

According to regulators, Quattrone personally earned $200 million from mid-1998 to late-2001. But in mid-2000, investigations began on allegations that CSFB had improperly shared IPO profits with clients.

CSFB is not the only Wall Street firm to face such investigations, but no firm has actually been charged with a crime. CSFB reached a settlement with the US Securities and Exchange Commission in early 2002, without admitting any wrongdoing, and agreed to pay the sum of $100 million.

The only criminal charges to come out of the investigations were those against Quattrone. He was accused of sending an e-mail on 5th December 2000 urging colleagues to "clean up those files" – after learning that the certain files were to be investigated by regulators.

A first prosecution against Quattrone failed in October last year when a jury was unable to reach a unanimous verdict after six days of deliberations.

Prosecutors then launched a retrial, accusing Quattrone of obstruction of justice, obstruction of agency proceedings, and witness tampering. On Monday, after only seven hours of deliberations, the jury found Quattrone guilty.

Quattrone's lawyer, John Keker, said that the dot.com banker would appeal.

Quattrone faces a maximum prison sentence of five years and a maximum fine of $250,000 for each of the obstruction charges. On the witness tampering charge Quattrone faces a maximum prison sentence of ten years, and a maximum fine of $250,000.

Sentencing will take place on 8th September.