Jury Undecided in Quattrone Trial

Yahoo News ^ | 10/16/03 | Paul Thomasch - Reuters

[NormsRevenge]

NEW YORK (Reuters) -
Jurors in the trial of former star banker Frank Quattrone obstruction of justice case asked late on Thursday to hear key testimony read back to them, as the second day of deliberations wound down without a verdict.

The jury sent several notes to the judge presiding over the trial, including a request to hear again Quattrone's testimony about his role in the allocation of hot stock offerings at Credit Suisse First Boston, where he was head of technology investment banking.

Quattrone resigned under pressure from CSFB, an affiliate of Switzerland's Credit Suisse Group (CSGZn.VX), in March and now stands trial on charges that he interfered with federal investigations in December 2000 by endorsing an e-mail in which a subordinate instructed staff to destroy old records.

At the time, the Securities and Exchange Commission (news - web sites) and a federal grand jury were seeking documents showing whether CSFB had doled out shares of the hottest stock offerings in exchange for kickbacks on other deals.

Whether Quattrone knew documents being sought would have been kept in the records of his investment banking unit and whether he played a role in how hot stocks were allocated have been the central questions in the case.

Shortly after 4 p.m. EST, the jury sent a note to Judge Richard Owen asking for the Quattrone's testimony regarding hot stock offerings -- testimony that took up several hours during the trial.

They also asked to see the transcripts of testimony about telephone conversations between Quattrone and David Brodsky, CSFB's former general counsel, in the days around the time the e-mail was sent.

Brodsky testified earlier in the trial that he told Quattrone he may be a witness in the investigations and he should retain a personal lawyer. The conversations took place before the e-mail telling staff to "clean up" their files was forwarded.

The jury's requests came about six hours after Owen called them back into the courtroom to answer prior questions the panel had about the obstruction of justice and witness tampering laws.

With Quattrone, his lawyers and the prosecution present in the courtroom, Owen told the jury early Thursday that to be found guilty of obstruction of justice the former banker must have known grand jury and SEC investigations were underway when he forwarded the now infamous e-mail.

Owen also clarified the definition of witness tampering, the other criminal charge Quattrone is facing. Unlike obstruction of justice, the judge told the jury that "there is no requirement that the defendant knew such a proceeding was imminent" to be found guilty.

The jury has been cut down to 11 panelists, after one was excused because her mother suffered a heart attack. The remaining panelists will gather in the courtroom on Friday to hear the testimony they requested read back. They will then continue with deliberations in what will be the 13th day of the trial.

[NormsRevenge]

Thu Oct 16, 3:07 PM ET

Frank Quattrone, a former investment banker at Credit Suisse First Boston, arrives at federal court in New York City October 16, 2003. Jurors in his criminal trial are in the second day of deliberations in the obstruction of justice and witness tampering case against the former banker. Quattrone is accused of interfering with federal investigations when he urged CSFB employees to get rid of documents that were being sought by a grand jury and regulators looking into how CSFB doled out shares of initial public offerings. (Jeff Christensen/Reuters)

[NormsRevenge]

Ping

[Lurking Libertarian]

Judge Owen is one of the toughest, most pro-prosecution judges around, and he gave Quattron'e defense team no breaks at all. The defense has to be thrilled with the delay. (The rule of thumb in criminal cases is, the longer the jury is out, the better for the defense.)