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Quattrone Scores Again

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The NASD has withdrawn all charges against Frank Quattrone, according to a statement issued by Quattrone today (and reported on DealBook). Over three years ago, the NASD charged Quattrone with “spinning,” claiming that he had handed hot IPOs to clients as kickbacks for other business. In response Quattrone argued that he hadn't done it, and that even if he had it wasn't against the rules anyway. Now it seems the NASD agrees, or at least decided it couldn't prove otherwise.
This makes it a hattrick for Quattrone, who earlier this year got his conviction on obstruction of justice charges overturned by a federal appeals court in New York and a lifetime ban from the securities business lifted. It's possible the feds could try to try Quattrone on the obstruction charges yet again. In fact, one attorney familiar with the case but not directly involved raised the possibility that this latest score for Quattrone might make prosecution for obstruction even more likely.
"They don't want to let him just walk away," the attorney said.
The Justice Department. Just when Frank thought he was getting out, they drag him back in.
NASD Drops Spinning Case Against Quattrone [DealBook]