Quattrone Fails To Get Charges AxedOct 8, 2003 | New York Daily News
Frank Quattrone's lawyers got off to a rocky start yesterday after prosecutors rested their case and the judge refused to dismiss the charges against the ex-CSFB investment banker.
The Silicon Valley tech banker is battling charges he encouraged his workers to destroy documents that could be used in a federal grand jury probe.
After the government called its 10th and final witness, the defense moved for a dismissal, claiming the prosecution had failed to prove its case.
Prosecutor Stephen Peikin told Manhattan Federal Court Judge Richard Owen with the jury out of the courtroom there was "substantial circumstantial evidence" that Quattrone obstructed a grand jury probe of CSFB's allocations of high-flying initial public stock offerings.
Owen then denied the motion.
The first defense witness was the author of the E-mail advising Quattrone's team to obey CSFB's document retention policy. Former CSFB banker Richard Char testified he sent the E-mail on Dec. 5, 2000, "because we weren't doing a very good job on document retention."
The prosecution was able to score points on cross-examination, getting Char to admit he felt "pretty stupid" when he was told the next day by a company lawyer that the E-mail could cause the destruction of documents the government wanted.
Meanwhile, nearby in State Supreme Court, a rank-and-file Tyco employee was the first witness in the corruption trial of former CEO Dennis Kozlowski.
Patricia Travis, a Tyco legal administrator from New Hampshire, told jurors she earned $62,800 last year and got a $7,500 bonus.
To point out the contrast with Kozlowski, prosecutors showed jurors Tyco documents that detailed several million dollars of company loans to him during his tenure.
Kozlowski and Mark Swartz, Tyco's ex-finance chief, are accused of looting $600 million from Tyco through unauthorized pay and illicit stock sales. Their lawyers say the men stole nothing.