e' in corso un'inchiesta che relativa ad un'operazione di acquisto che
coinvolge VA Linux, oggi conosciuta come Va Software, di piu' non ho capito
bene e non ho tempo di tradurre, ma dovrebbe essere questa la spiegazione
del leggero calo odierno
UPDATE: Government Witness Helps Quattrone In Testimony
Tuesday October 7, 8:11 pm ET
By Nick Baker, Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Investment bankers at Credit Suisse First Boston
weren't broadly told to retain documents sought in the government's initial
public offering probe until several days after Frank Quattrone sent an
infamous e-mail backing the destruction of some documents, a key government
witness testified Tuesday.
That witness also suggested Quattrone may not have been made fully aware of
the scope of the investigation before he sent that contentious message for
bankers to "clean up" their files on Dec. 5.
These concessions by David Brodsky, who was a top attorney at Credit Suisse
Group's (NYSE:CSR - News) CSFB in late 2000 when the investigation was
heating up, may be among the most helpful yet in the week-long trial of
Quattrone, the former CSFB banker accused by government prosecutors of
obstructing their inquiry into how CSFB allocated shares of hot IPOs.
On Friday, Brodsky said Quattrone was told of a grand jury subpoena on Dec.
3, 2000, two days before Quattrone agreed with a subordinate that
nonessential IPO documents shouldn't be retained. Brodsky's Friday testimony
was some of the most damaging yet against Quattrone. The grand jury
subpoena, issued on Nov. 21, 2000, instructed CSFB to hand over all
documents related to the IPOs the company had handled since the beginning of
1999.
When the trial resumed Tuesday and Quattrone lawyer John Keker began his
cross-examination, Brodsky admitted that communication between the legal
department and CSFB bankers may not have clearly stated that the
government's investigation extended beyond two IPOs: VA Linux Systems Inc.
(NasdaqNM:LNUX - News), now known as VA Software Corp. , and Solectica.
That is a critical distinction, given that the government sought a wide
swath of documents about all IPOs CSFB was involved with between Jan. 1,
1999, and Nov. 21, 2000, when the grand jury issued its subpoena. Prior to a
Dec. 7 e- mail, CSFB bankers hadn't been told to keep all IPO information
for that period, Brodsky said. Another widely disseminated message demanding
the preservation of documents was sent within CSFB on Dec. 8.
In late September of that year, CSFB bankers had been instructed to keep VA
Linux and Solectica documents for a Securities and Exchange Commission
(News - Websites) inquiry, according to two e-mail messages shown to Brodsky
while he was on the stand in U.S. District Court in Manhattan. Until Dec. 7,
"I don't recall seeing anything broader than what you've just shown me,"
Brodsky testified.
Also, in e-mails sent to Quattrone leading up to the broad instruction to
CSFB bankers on Dec. 7, Brodsky characterized that investigation as looking
into CSFB's "IPO allocation process," something Quattrone wasn't involved
in. He had a separate task: equity underwriting. Using this shorthand
description of the inquiry "does not cover the scope" of what the government
was looking into, Brodsky conceded Tuesday. "Yes, it was broader than that,"
he said.
Keker jumped on that admission that the allocation of shares is only a small
part of the IPO process and intimated that Quattrone therefore wasn't kept
fully in the loop. After the jury left the courtroom at the end of Tuesday's
session, Keker addressed several procedural matters with U.S. District Judge
Richard Owen.
During that discussion, he brought up Brodsky's admission about using the
"IPO allocation process" moniker to describe the government investigation.
"If he ( Quattrone) was told they had an investigation into the IPO process,
they might have a case," Keker said.
Richard Char, a subordinate of Quattrone's in the technology investment
banking division, sent the Dec. 4 e-mail encouraging bankers to "clean up,"
or discard, many documents related to IPOs - a message backed in another
e-mail a day later by Quattrone.
Char sent another message that was displayed during Tuesday's hearing. In
it, he gave a similar instruction: for bankers to rid their files of
unnecessary documents and to do so soon.
"Today it's administrative housekeeping. In January, it could be improper
destruction of evidence," Char wrote to Quattrone and others. Quattrone
responded: "You shouldn't make jokes like that on email!"
In his Tuesday testimony, Brodsky, in reference to Char's phrasing, said he
" was surprised that anyone would put into an e-mail something along that
line." On Dec. 7, 2000, after Quattrone brought Char's e-mail to Brodsky's
attention, Brodsky wrote: "Thanks for reminding Richard. Jokes on email come
back to haunt people, even innocent people like us."
After Brodsky's testimony Tuesday, two other former CSFB bankers who worked
under Quattrone were called to the stand by the government. Both said they
were unaware until after Char and Quattrone sent their clean-up-your-files
messages that the government was looking broadly into CSFB's IPO practices.
Both witnesses, Michael Ounjian and Edward Loh, who now work as equity
analysts at CSFB, said they didn't destroy any documents after the Char and
Quattrone messages, although Ounjian told several subordinates to look into
doing so. That process stopped a day or two later when the breadth of the
inquiry was revealed throughout the investment banking division.
Vabbe', va:
sembra che i guai rischia di passarli Credit Suisse, e non VA, cosa
prevdibile daltronde, altrimenti Linux oggi sarebbe scesa di piu' e con
forti volumi, invece si e' trattato di un semplice lieve rintracciamento.
"Bart67" <pbartol@prigioniero.it> ha scritto nel messaggio
news:bm229m$3jq$1@lacerta.tiscalinet.it...
> e' in corso un'inchiesta che relativa ad un'operazione di acquisto
che
> coinvolge VA Linux, oggi conosciuta come Va Software, di piu' non ho
capito
> bene e non ho tempo di tradurre, ma dovrebbe essere questa la
spiegazione
> del leggero calo odierno
Cacchio!
Io causa lavoro e causa un infortunio al mio ginocchio non ho più
seguito molto.
Che sta succedendo?
Non ho voglia di leggere l'inglese ora :-(
.LNUX 
09-10-2003, 00.16.03
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