X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Credit Suisse First Boston Corp. on June 28 fired three brokers from its San Francisco-based technology private client services (PCS) group amidst an ongoing federal probe that is investigating how the company allocated shares in initial public offerings. New York-based CSFB, a unit of Credit Suisse Group’s Zurich bank, fired John Schmidt, head of the PCS group, as well as Michael Grunwald and Scott Bushley, who both reported to Schmidt in that same group. Schmidt reported to high-profile West Coast technology banker Frank Quattrone and Andy Benjamin, CSFB’s head of private client services in New York. NASD Regulation Inc. warned Benjamin in early May that he may be charged with violations. A spokeswoman for CSFB told The Deal the employees were fired for violating company policy and procedures. The three had been on administrative leave since April. Although CSFB is not filing any criminal charges against the three individuals, the company said it has informed regulators of its actions. According to an 8-K filing under the Securities Exchange Act, the U.S. Attorney’s Office for the Southern District of New York and the Securities and Exchange Commission are focusing on the company’s IPO practices in 1999 and 2000, particularly at the relationship between the payment of allegedly excessive commissions to CSFB and IPO share allocations. CSFB said in the filing, “These investigations could result in enforcement and other actions against CSFB by one or more of the investigating entities,” adding that the company “intends to defend itself vigorously against all of the claims.” The company issued a statement in December saying the SEC had asked the company for information regarding its IPO share allocation process. CSFB, which said several investment banks are also involved in the probe, stated that it is cooperating with the authorities by providing documents and witnesses requested in subpoenas. CSFB has conducted its own internal investigation into the charges. The spokeswoman for CSFB said the company has not identified any other individuals who have violated its policy and procedures. Copyright (c)2001 TDD, LLC. All rights reserved.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.